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MTN Nigeria’s MoMo Wallets Drop 47% Amid Fintech Growth
MTN Nigeria has reported a 47% decline in active mobile money (MoMo) wallets by the end of 2024, reducing the total number of active users to 2.8 million from 5.3 million in 2023.
The company disclosed this in its audited financial results for the full year 2024, released on Thursday, attributing the drop to a strategic shift towards prioritizing high-quality, engaged users and improving operational efficiency.
Additionally, MTN Nigeria recorded a significant decrease in MoMo agents and merchants, with their numbers plummeting by 76.8% and 79.2%, respectively. Despite these declines, transaction volumes rose by 4.3%, indicating sustained demand and improved user engagement.
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“In fintech, we recalibrated the business’ growth strategy to improve the quality and stickiness of our wallet base and the development of advanced services, supported by the promotion of the MoMo PSB app,” said MTN Nigeria’s CEO, Karl Toriola. “Although this intervention resulted in a decline in active wallets, it was essential to establish a sustainable growth trajectory for our MoMo PSB ecosystem.”
MTN Nigeria’s fintech business continued to perform well, with revenue increasing by 23.2% year-on-year. The company saw even stronger growth in the fourth quarter, with a 38.7% revenue increase, driven mainly by its airtime lending product, Xtratime, which has gained significant traction among users.
The digital services segment also experienced massive growth, with revenue soaring by 95.2% year-on-year, fueled by increased adoption of rich media services and improved user experience. By the end of 2024, the number of MTN Nigeria’s rich media subscribers had reached 9.8 million monthly active users, marking a 22.4% increase from 2023.
Despite strong revenue growth, MTN Nigeria reported a $267.3 million loss after tax in 2024, largely due to Nigeria’s record-high inflation and the sharp devaluation of the naira. The company’s total revenue rose by 35.9% to $2.2 billion.
MTN’s net foreign exchange losses increased by 24.98%, reaching $617.5 million from $494.4 million in 2023. The company attributed this to Nigeria’s foreign exchange market unification, which significantly impacted operational costs.
However, MTN remains optimistic about its financial outlook, with expectations that the recent tariff hike will boost revenue by at least 40% in 2025, helping restore a positive net asset position and increasing capital expenditure investment.
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