MTN Nigeria has revealed a significant decline in active users of its mobile money platform, MoMo Payment Service Bank (PSB), as part of a deliberate strategy to enhance user quality and operational efficiency. The number of active wallets dropped by 47% in 2024, falling to 2.8 million from 5.3 million recorded at the end of 2023.
The company disclosed this in its audited financial results for the year, attributing the decline to a recalibration of its growth strategy. According to MTN Nigeria’s CEO, Karl Toriola, the move was necessary to establish a sustainable growth trajectory for the MoMo ecosystem. “Although this intervention resulted in a decline in active wallets, it was essential to improve the quality and stickiness of our wallet base while developing advanced services,” Toriola explained.
The number of MoMo agents and merchants also saw steep declines, dropping by 76.8% and 79.2%, respectively. However, despite these reductions, transaction volumes on the platform increased by 4.3%, signaling stronger engagement among remaining users and sustained demand for financial technology services.
While active wallet numbers fell, MTN’s fintech business delivered a strong performance in 2024, with revenue growing by 23.2% year-on-year. The fourth quarter was particularly robust, with a 38.7% revenue increase driven by the popularity of its airtime lending product, Xtratime. This service has gained significant traction among users and contributed substantially to the company’s fintech growth.
MTN’s digital services segment also experienced remarkable growth, with revenue surging by 95.2% compared to the previous year. Monthly active subscriptions for rich media services grew by 22.4%, reaching 9.8 million users by the end of 2024. The company credited this success to ongoing investments in digital content and enhancements to user experiences, which have resonated with customers seeking personalized and engaging services.
Despite these successes, MTN Nigeria faced financial challenges in 2024, reporting a ₦400.4 billion loss after tax due to record-high inflation and the devaluation of the naira. The company’s operational expenses were further impacted by net foreign exchange losses, which rose by nearly 25% year-on-year to ₦925.36 billion.
MTN Nigeria remains optimistic about its future prospects. The company expects a recent tariff hike to boost revenue by at least 40% in 2025 and plans to focus on restoring a positive net asset position while increasing capital expenditure intensity.
