MTN Nigeria has reported a 47 per cent decline in active wallet users for its mobile money subsidiary, MoMo PSB, bringing the total to 2.8 million at the end of 2024, down from 5.3 million the previous year.
This was disclosed in the company’s audited financial results for the full year 2024.
The company attributed the decline to a deliberate shift in strategy aimed at prioritising high-quality, engaged users and improving operational efficiency.
In addition to the drop in active wallets, the number of MoMo agents and merchants also fell sharply, declining by 76.8 per cent and 79.2 per cent, respectively.
MTN Nigeria’s CEO, Karl Toriola, explained that the company had recalibrated its approach to customer acquisition and engagement within the fintech segment.
“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. Although this intervention resulted in a decline in active wallets, it was essential to establish a sustainable growth trajectory for our MoMo PSB ecosystem,” Toriola stated.
Despite the reduction in wallet users and agents, transaction volumes increased by 4.3 per cent, suggesting stronger engagement among remaining users and sustained demand in the fintech ecosystem.
MTN Nigeria’s fintech business recorded strong growth, with revenue rising by 23.2 percent year-on-year. Growth accelerated in the fourth quarter, with a 38.7 per cent increase, largely driven by the success of its airtime lending product, Xtratime. The product has gained traction among users, significantly contributing to the fintech segment’s overall performance.
Similarly, the company’s digital services segment experienced impressive expansion, with revenue soaring by 95.2 per cent year-on-year. The surge was fueled by increasing adoption of rich media services and enhancements to the user experience. By the end of 2024, MTN Nigeria’s rich media subscriptions had reached 9.8 million monthly active users, marking a 22.4 percent rise from the previous year.
MTN credited this growth to continuous investment in digital content and platforms, positioning its digital services as a key revenue driver. The company’s efforts to diversify beyond traditional telecom offerings are now yielding significant results, reinforcing its long-term growth strategy in Nigeria’s evolving digital and fintech landscape.
