- MTN Nigeria reported a 72.4% drop in fintech revenue following Xtratime service suspension
- The telecom giant anticipates recovery in fintech business as Xtratime resumes operations
- MTN’s overall revenue surged 25.9% amidst strong core business performance and growing subscriber base
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
MTN Nigeria has disclosed the financial impact of the temporary suspension of its airtime and data credit service, Xtratime, revealing a sharp drop in fintech earnings despite posting a strong overall profit for the first half of 2026.
The telecom giant said fintech revenue plunged 72.4% year-on-year to ₦12.99 billion in the second quarter after the service was halted in April.
Credit: MTN Nigeria
Source: UGC
The decline dragged first-half fintech revenue down 7.2% to ₦77.2 billion, making the unit one of the few weak spots in an otherwise impressive earnings report.
Why Xtratime was suspended
MTN suspended Xtratime on April 16, 2026, to comply with Nigeria’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new licensing and compliance framework for digital lenders.
The results highlight how heavily MTN’s fintech business had come to rely on the airtime and data credit product.
Although the company’s mobile money platform continued to attract users, the suspension of a single service was enough to push the entire fintech division into decline.
Recovery expected in second half
MTN said the service has now resumed and expects activity levels to improve gradually in the second half of the year.
“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,” MTN Nigeria CEO Karl Toriola said.
Despite the revenue slump, the company said its underlying mobile money business remained strong.
Mobile money revenue grew by about 132%, while active MoMo wallets increased by 1.3 million to 5 million, indicating continued customer adoption even as lending activity slowed.
Fintech separation moves forward
MTN is also progressing with the planned separation of its fintech business following shareholder approval. Under the restructuring, MoMo Payment Service Bank Limited and Y’ello Digital Financial Services Limited will be moved into a new holding structure backed by MTN Group.
MTN Group plans to inject ₦152.06 billion for a 60% stake, while MTN Nigeria will retain 40%. The transaction is awaiting regulatory approval.
Strong core business performance
Outside fintech, MTN delivered one of its strongest half-year performances on record.
Credit: MTN Nigeria
Source: UGC
Total revenue rose 25.9% to ₦2.99 trillion, driven by 38.39% growth in data revenue and 11.99% growth in voice revenue.
Profit after tax surged 70.6% to ₦707.54 billion, while the company ended the period with 92.2 million subscribers and 55.7 million active data users. MTN also declared an interim dividend of ₦26 per share, according to multiple reports, including TechCabal and BusinessDay.
MTN, 2 telcos to restart airtime, data lending services
Legit.ng earlier reported MTN Nigeria is preparing to restore its popular Xtratime airtime and data lending service following a regulatory pause that has already prompted Airtel and Globacom to resume similar offerings.
The development comes after the Federal Competition and Consumer Protection Commission (FCCPC) suspended the enforcement of its Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations (DEON Regulations) 2025, paving the way for telecom operators to reactivate airtime and data advance services.
According to a report by TechCabal, an MTN insider confirmed that the company is taking steps to reinstate Xtratime after the FCCPC halted enforcement of the controversial regulations.
Source: Legit.ng