Last Update 25 Nov 25
Fair value Increased 1.08%MTN Nigeria Fintech (MoMo) Delivers Strong Growth with Rapid Expansion in Wallets, Agents, and Merchants
Executive Summary
Author: Qudus Adebara (Found of Wane Investment House and Wane Trading Club)
MTN Nigeria’s Fintech subsidiary, MoMo, delivered outstanding performance, reinforcing its position as a leading financial inclusion catalyst in Nigeria. The platform recorded 2.9 million active wallets, supported by a revamped customer acquisition model and a strong expansion of its distribution ecosystem. Fintech revenue surged 72.5%, reflecting the successful scaling of its wallet ecosystem, enhanced service uptake, and broader network effects.
MoMo’s re-engineered operating framework—prioritizing agent quality, merchant coverage, and sustainable engagement—is driving material improvements in customer activation and financial access, especially across underserved communities. The platform also benefited from higher interest income, which rose 80.5%, complementing MTN Nigeria’s overall service revenue of ₦3.7 trillion and restored PAT of ₦750.2 billion.
Overall, MoMo’s performance underscores its strategic importance in the national financial inclusion agenda and positions it for continued growth as digital payments and mobile financial services accelerate nationwide.
Fintech Performance Overview
MoMo delivered strong operational and financial performance driven by improvements across its ecosystem:
Key Metrics
- Active Wallets: 2.9 million
- +1.6% growth from December 2024
- Driven by refined customer onboarding and improved activation quality
- Fintech Revenue Growth: +72.5% YoY
- Interest Income: +80.5%
- Reflects larger wallet balances and expanded deposit pools
- Active Agent Network: +73.6%
- Active Merchants: +42.6%
These metrics highlight the strengthened distribution framework and growing consumer trust in the platform.
Strategic Initiatives Driving Growth
1. Revamped Customer Acquisition Framework
MoMo undertook a comprehensive restructuring of its customer acquisition model, shifting focus from volume-driven onboarding to sustainable activation quality. Key elements include:
- Improved customer verification processes
- More targeted onboarding in high-potential communities
- Better agent support and training to enhance wallet activation and usage
This recalibrated approach ensured that wallet additions translate into actual transaction activity, not just registrations.
2. Massive Expansion of Distribution Network
MoMo aggressively strengthened its on-ground presence to deepen financial access:
- 73.6% growth in active agents, providing enhanced touchpoints for deposits, withdrawals, transfers, and bill payments.
- 42.6% growth in merchants, expanding acceptance points for digital payments across retail, transport, and informal markets.
This distribution-led strategy unlocks network effects and enables more Nigerians to transact digitally, especially in rural and peri-urban areas.
3. Strengthening Financial Inclusion Across Underserved Communities
MoMo’s expansion is directly aligned with national financial inclusion priorities:
- Deployment of agents in rural and low-income communities
- Support for micro-enterprises through merchant digitisation
- Enabling secure, low-cost financial services at scale
The company reiterated its mission of “deepening financial inclusion in underserved communities through our MoMo agents and merchants.”
4. Enhanced Liquidity and Interest Income Growth
Interest income grew 80.5%, driven by:
- Higher transaction volumes
- Increased stored-value deposits
- Better treasury management
This additional revenue stream strengthens MoMo’s financial resilience and ability to reinvest in expansion.
Implications and Outlook
MoMo’s robust momentum positions it as one of Nigeria’s fastest-growing fintech ecosystems. With a stronger foundation in:
- Wallet activation quality
- Agent and merchant network depth
- Interest income scalability
- Community-level financial inclusion
the platform is poised for sustained double-digit growth. Continued ecosystem expansion will enable MoMo to capture more of Nigeria’s fast-growing digital payments market while narrowing the financial access gap nationwide.
MTN NIGERIA COMMUNICATIONS PLC Q3 Result – Strong Earnings Recovery, Balance Sheet Restoration & Dividend Resumption
Executive Summary
MTN Nigeria Communications Plc delivered a strong financial and operational performance for the nine months ended September 30, 2025, marking a full turnaround after FY-2024 losses driven by FX volatility. The Group reported a substantial rebound in earnings supported by mobile data growth, fintech expansion, pricing adjustments, and improved FX market stability. Profit Before Tax surged to ₦1.13 trillion from a loss of ₦714 billion in 9M 2024, reflecting a significant rebound in core operations and net foreign exchange gains amid naira appreciation and moderated currency volatility. Profit After Tax stood at ₦750 billion compared to a ₦515 billion loss in the prior period, supported by operating efficiency and reduced FX loss pressures. Revenue grew 57% YoY to ₦3.73 trillion driven by accelerating data usage, expanding fintech adoption and tariff adjustments. EBITDA increased 123% YoY to ₦1.92 trillion, reflecting enhanced cost efficiency, improved operating leverage, and lower naira-driven opex pressures. MTNN also declared an interim dividend of ₦5.00 per share, signalling renewed confidence in capital strength and future cash flows.
Financial Highlights – Statement of Profit or Loss
₦’ million 9M 2025 9M 2024
Revenue 3,726,000 2,368,000
EBITDA 1,917,000 860,000
EBITDA Margin 51.4% 36.3%
Depreciation & Amortization (600,000)* (approx.)
EBIT 1,317,000 430,000
Net Finance Costs (186,000) (1,140,000)
Profit Before Tax 1,131,000 (714,000)
Income Tax (381,000) 199,000
Profit After Tax 750,000 (515,000)
EPS (₦) ₦35.77 (₦24.51)
Revenue Performance
- Total revenue +57% YoY, driven by strong pricing and volume growth
- Data revenue +73% YoY, supported by:
- +36% increase in data traffic
- Higher 4G network capacity and 5G rollout momentum
- Growth in smartphone penetration (65%)
- Voice revenue +41.9% YoY as base expanded +11% subscribers
- Fintech revenue +72.5% YoY with rising MoMo wallet adoption (+1.6% YTD active wallets)
- Solid contributions from enterprise and wholesale services
MTN’s strategic focus on digital inclusion, network upgrades, and fintech monetization continued to reinforce topline expansion.
Profitability and Margins
- EBITDA margin improved to 51.4% from 36.3%, reflecting strong scale benefits
- FX environment normalized, resulting in ₦55.6bn FX gain vs ₦905bn loss prior year
- Net finance costs moderated significantly as FX pressures eased
- Cost optimization and reduced USD-linked opex supported margin expansion
- Rebound in bottom-line profitability enabled dividend reinstatement
Balance Sheet Overview
₦’ million Sep 2025 Dec 2024 % Δ
Total Assets 4,310,000 4,050,000 +6%
Total Liabilities 4,017,000 4,508,000 -11%
Net Assets / Equity 293,000 (458,000) Turned Positive
Retained Earnings 143,000 (607,000) Rebuilt
Cash Flow from Ops 742,600 536,100 +39%
Interpretation
- Equity turned positive following improved profitability and FX gains
- Strong operating cash flow supports capex and dividend commitments
- Strategic capex front-loading to support network growth
- Deleveraging continued through repayment of foreign obligations and reduced FX translation losses
Key Indicators
Metric 9M 2025
Revenue Growth +57%
EBITDA Growth +123%
EBITDA Margin 51.4%
PBT Growth Turnaround
PAT Growth Turnaround
Subscriber Growth +11%
Active Data Users +13%
MoMo Wallets +2.5%
Strategic Insights
- Accelerated investments in broadband expansion (4G + 5G rollout)
- Strengthening fintech ecosystem and MoMo penetration
- Pricing strategy supports ARPU growth
- Focus on operational efficiencies to sustain margins
- Digital initiatives, enterprise solutions, and infrastructure sharing driving future growth
Strengths
- Largest telecom operator in Nigeria by subscriber base
- Strong brand equity and national coverage leadership
- Robust data and fintech momentum
- Rebuilt equity base and improved cash flows
Weaknesses
- High dependence on regulatory environment and spectrum costs
- Persistent inflationary pressures can impact ARPU elasticity
- FX exposure still material despite improving stability
Outlook
MTN Nigeria is poised to sustain growth momentum backed by:
- Continued data traffic surge
- Fintech revenue expansion
- Easing FX volatility and improving naira liquidity
- Strengthening free cash flow to support dividend policy
Management guidance remains bullish, targeting sustained margin expansion and capital discipline through FY-2025/26.
Analyst View
“MTN Nigeria’s 9M-2025 performance confirms a strong recovery trajectory driven by data leadership, fintech growth, and FX stabilization. With equity restored, margins expanding, and dividend reinstated, MTN is positioned for multi-year value creation supported by disciplined execution and digital ecosystem expansion.”
Conclusion
MTN Nigeria delivered a decisive rebound in 9M 2025, underpinned by strong core operations, cost efficiency, and FX normalization. With a solid balance sheet, strong cash generation, and accelerating digital growth, the Group remains strategically well-positioned for sustained earnings growth and long-term shareholder value creation.
How well do narratives help inform your perspective?
Disclaimer
The user Wane_Investment_House holds no position in NGSE:MTNN. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
