The financial technology arm of MTN is mulling a direct shift into lending after bringing on its parent company, MTN Group, as a major investor to help cushion against losses that have plagued the business.
According to MTN Group Fintech chief executive, Mr Serigne Dioum, the company wants to move beyond helping customers access loans through partners.
He said in markets where regulators allow it, MTN wants to lend directly and use its own balance sheet.
“We’ve expanded access to credit for more people, but we also want to move further up the lending value chain,” Mr Dioum told investors at the company’s capital markets day.
“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.”
This development is expected to create a shift in its current fintech model which provides financial services, including deposits, payments, transfers and digital wallets to individuals and small businesses via digital and mobile‑based platforms.
The company has applied for Payment Solution Service Provider and Payment Terminal Service Provider licences through MoMo PSB, its Nigerian fintech subsidiary. If approved, the licences would allow MTN to handle more payment processing, build merchant payment tools, deploy and manage POS terminals, and reduce its dependence on third-party processors.
Despite the opportunities present in the credit market, direct lending could give MTN a larger share of revenue, but it would also expose the company to credit risk, regulation and tougher competition with banks and digital lenders.
Mr Dioum said only about 4 per cent to 5 per cent of adults have access to formal credit across the African continent. In Nigeria, the funding problem is especially severe.
A 2025 report by the National Credit Guarantee Company said nearly 80 per cent of Nigerian MSMEs lack access to formal credit, while Stears has estimated the country’s MSME financing gap at about $236 billion.
For traders, small shop owners, transport operators and households, access to small loans can determine whether they restock inventory, pay suppliers, cover emergencies or expand a business.
In April, MTN Nigeria announced that its parent firm, based in South Africa, would acquire a 60 per cent stake in MoMo Payment Service Bank Limited (MoMo PSB) and Y’ello Digital Financial Services (YDFS) Limited.
The fintech units are currently loss-making, and this move will help MTN Nigeria to reduce financial risk and share future losses and investment burden. However, it will still keep a significant minority stake (40 per cent).
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