MTN Nigeria Faces Fintech Headwind Following Lending Service Pause

MTN Nigeria’s fintech division experienced a significant setback in the second quarter of 2026, with revenue plummeting 72.4% year-on-year to ₦12.99 billion ($9.5 million). This sharp decline occurred after MTN temporarily suspended its popular airtime and data credit service, Xtratime, on April 16th.

The suspension was implemented to comply with Nigeria’s new Digital Lending Regulations of 2025, which require digital lenders to obtain licenses and adhere to stricter compliance frameworks. While the move reflects MTN’s commitment to regulatory adherence, it exposed the division’s reliance on Xtratime for revenue generation.

Mixed Financial Performance

The fintech slump contrasted with MTN’s overall strong earnings report, where profit after tax surged 70.6% to ₦707.54 billion ($518 million). Total revenue increased by 25.9% to ₦2.99 trillion ($2.2 billion), driven by robust growth in data services (up 38.39%) and voice revenue (up 11.99%).

Strategic Implications

The timing of this regulatory transition is particularly noteworthy as MTN works towards separating its fintech business—a move investors view favorably for unlocking value. Despite the short-term impact, MTN expects fintech performance to recover in the second half of the year as operations resume.

“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,” stated Karl Toriola, MTN Nigeria’s CEO.

The company remains optimistic about its long-term fintech prospects. Its mobile money service continued to expand during the quarter, with revenue growing by 132% and active wallets increasing by 1.3 million to reach 5 million users.