MTN Nigeria revamps MoMo PSB strategy as active wallets drop 47%
MTN Nigeria has reported a sharp 47 per cent decline in active wallets for its mobile money subsidiary, MoMo PSB, with the total number of users falling to 2.8 million at the end of 2024 from 5.3 million the previous year.
The drop, disclosed in the company’s audited financial results for 2024, comes amid a strategic overhaul aimed at prioritising high-quality, engaged users while streamlining operations. The number of MoMo agents and merchants also declined significantly, falling 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 to ensure long-term sustainability.
“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,” he stated.
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Despite the decline in wallet users and agents, transaction volumes grew by 4.3 per cent, signalling stronger engagement among remaining users and sustained demand for mobile financial services.
MTN Nigeria’s fintech division saw a 23.2 per cent rise in revenue year-on-year, with fourth-quarter growth accelerating to 38.7 per cent. The surge was largely driven by its airtime lending product, Xtratime, which continues to gain traction among users.
Similarly, the company’s digital services segment recorded impressive expansion, with revenue soaring by 95.2 per cent year-on-year. By the end of 2024, MTN Nigeria’s rich media subscriptions had climbed to 9.8 million monthly active users, marking a 22.4 per cent increase from the previous year.
MTN attributed this growth to ongoing investments in digital content and platforms, reinforcing its commitment to diversifying beyond traditional telecom offerings. The company’s evolving strategy underscores its long-term vision to position itself as a dominant player in Nigeria’s digital and fintech landscape.
