June 27, 2025/CSL Research
The Nigerian telecommunications industry stands at the threshold of a fintech transformation, driven by the rapid adoption of digital financial services across the country. Mobile money, in particular, has emerged as a compelling growth opportunity for telecom operators. Yet, despite the promise, telcos in Nigeria have been slow to translate their extensive subscriber bases and infrastructure into meaningful success in the mobile money space.
Dominated by fintech players like Moniepoint and Opay, the mobile money ecosystem has, until recently, left telecom operators on the sidelines. However, recent strategic developments suggest that this dynamic is shifting. While telcos may still be playing catch-up, the foundations are being laid for substantial growth, signalling a bright future for their participation in Nigeria’s digital financial landscape.
Unlike in other African markets—where telecom-led mobile money has become a dominant force—Nigeria’s telcos have yet to realize the full potential of this segment. In countries like Kenya and Ghana, mobile money has become a core part of telecom services, with Safaricom’s M-Pesa becoming the hallmark of mobile money success in East Africa, and MTN’s MoMo proving highly successful in West and Central Africa. These regional success stories highlight how integrating telecom infrastructure with financial services can drive both revenue and financial inclusion, offering a model of scalability and impact for other markets.
MTN Nigeria is emerging as the leader among telecoms in the country’s mobile money space, following its full acquisition of MoMo Payment Service Bank in November 2024. The company has since focused on improving wallet services, launching cross-border remittance to 13 African countries, and upgrading the MoMo app. These initiatives are driving strong results, with MTN reporting a 57.9% year-on-year increase in fintech revenue to ₦36.08 billion in Q1 2025. Airtel Nigeria’s mobile money growth has been modest compared to its broader African operations. Although Airtel Africa’s mobile money revenue rose 18.7% to US$994 million in FY 2025, Nigeria contributed only US$4 million, highlighting the early stage of its operations in the country. To boost growth, Airtel is expanding its presence by establishing Airtel money agents and kiosks, particularly in underserved rural areas.
Nigeria’s mobile money landscape is evolving, with key trends creating strong growth prospects for telecom operators. A national shift toward digital payments, driven by convenience, smartphone penetration, and regulatory support from the Central Bank, is laying the groundwork for telecoms operators to scale their mobile money service. Telcos are using their extensive infrastructure and agent networks to improve access across urban and rural areas. While Nigerian telcos have so far lagged behind in the mobile money race, the tide is beginning to turn. MTN’s strong performance and strategic direction point to a growing foothold in the market, while Airtel’s deliberate expansion efforts suggest a longer-term commitment to capturing share.
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