MTN eyes Nigerian credit sector through new fintech licence applications

MTN plans to expand its lending operations across major African markets, particularly Nigeria, as the continent's largest telecommunications provider pursues regulatory approvals to enable its fintech division to provide a broader array of financial services. "We've expanded access to credit for more people, but we also want to move further up the lending value chain," stated Serigne Dioum, MTN Group Fintech CEO, during the company's capital market event on Wednesday. "Where appropriate, we will seek licences that allow us not only to facilitate loans but also to lend directly to customers and deploy our own balance sheet."

Expanding Credit Access Across Africa

This strategy highlights MTN's goal to secure a larger share of the underserved credit market in Africa, where formal credit access remains highly restricted despite rising demand. A 2025 report by the National Credit Guarantee Company (NCGC) notes that nearly 80% of Nigerian Macro, Small, and Medium Enterprises (MSMEs) lack access to formal credit, and a Stears report estimates a $236 billion funding gap in the sector. According to Dioum, this issue spans the continent, with only 4% to 5% of adults across Africa currently possessing access to formal credit.

Licence Acquisition and Financial Growth

Nigeria remains central to MTN's growth strategy. MTN Group CEO Ralph Mupita stated that the company is seeking additional licences in Nigeria and other territories to expand its financial service offerings, though he did not name the specific licences. "We are pursuing additional licences that will allow us to offer a broader suite of financial products and services to customers," Mupita said. "Nigeria is a key market in this regard, but the opportunity extends across several of our markets." This expansion follows strong growth in MTN's fintech division, which generated roughly $2.8 billion in revenue, handled over $500 billion in transaction value, and recorded more than 23 billion transactions in 2025. The fintech arm currently serves over 70 million active MoMo users, 2 million merchants, and 1.4 million agents.

Transitioning to Direct Lending

Direct lending is MTN's next major target. Currently, the firm facilitates credit through partnerships, with Dioum noting that more than one million people access loans daily through MTN's platforms. Transitioning to direct lending would allow MTN to use its own balance sheet, increasing revenue and customer experience control. The company projects that Africa's fintech revenue pool could grow 13-fold over the next five years. To prepare, MTN Nigeria's fintech subsidiary, MoMo PSB, applied for Payment Solution Service Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences in November 2024, a process Mupita confirmed is still ongoing.

What this means for Africa: MTN's push into direct lending and payment licensing could significantly narrow the continent's massive credit gap by leveraging its existing network of over 70 million mobile money users.