MTN Fintech Revenue Plunges 72.4% After Xtratime Suspension, Overall Profit Jumps 70.6%

MTN Nigeria has revealed that the temporary suspension of its Xtratime airtime and data lending service caused a 72.4% year-on-year drop in fintech revenue in the second quarter, even as the company posted a strong overall half-year profit. Fintech revenue fell to ₦12.99 billion in Q2 after the service was halted in April.

Xtratime suspension dents fintech earnings

The decline dragged first-half fintech revenue down 7.2% to ₦77.2 billion, making the unit one of the few weak spots in an otherwise impressive earnings report. MTN suspended Xtratime on April 16, 2026, to comply with Nigeria's Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new licensing and compliance framework for digital lenders.

The results show how heavily MTN's fintech business had come to rely on the airtime and data credit product. Although the mobile money platform continued to attract users, the suspension of a single service was enough to push the entire fintech division into decline.

MTN said the service has now resumed and expects activity levels to improve gradually in the second half of the year. "With operations now recommenced, we expect activity levels to progressively ramp up through H2, supporting a stronger contribution from our fintech business over the remainder of the year," MTN Nigeria CEO Karl Toriola said.

Mobile money stays strong

Despite the revenue slump, the company said its underlying mobile money business remained strong. Mobile money revenue grew by about 132%, while active MoMo wallets increased by 1.3 million to 5 million, indicating continued customer adoption even as lending activity slowed.

MTN is also progressing with the planned separation of its fintech business following shareholder approval. Under the restructuring, MoMo Payment Service Bank Limited and Y'ello Digital Financial Services Limited will be moved into a new holding structure backed by MTN Group. MTN Group plans to inject ₦152.06 billion for a 60% stake, while MTN Nigeria will retain 40%. The transaction is awaiting regulatory approval.

Core business delivers record half-year

Outside fintech, MTN delivered one of its strongest half-year performances on record. Total revenue rose 25.9% to ₦2.99 trillion, driven by 38.39% growth in data revenue and 11.99% growth in voice revenue. Profit after tax surged 70.6% to ₦707.54 billion, while the company ended the period with 92.2 million subscribers and 55.7 million active data users. MTN also declared an interim dividend of ₦26 per share.

For Nigerian consumers and investors, the recovery of Xtratime and the FCCPC's suspension of enforcement of the DEON regulations suggest digital credit services are returning. MTN's fintech separation, once approved, could reshape the lending landscape and open the door for more competition in airtime and data credit.