MTN Nigeria, the country’s leading telecommunications provider, has further solidified its commitment to its mobile money business, MoMo PSB, with an additional ₦1.15 billion ($687,000) capital injection. This extra funding brings the total investment in MoMo PSB to ₦26.35 billion ($15.75 million) from ₦25.2 billion ($15.07 million) in 2023, according to its recently released nine-month report for 2024.
Launched in 2022 with an initial investment of ₦10 billion ($5.98 million), MoMo PSB has ambitions of becoming the fintech of choice. In August 2024, MTN Nigeria acquired full control of the business by purchasing the remaining stake from Acxani Capital Limited for ₦6.95 billion($4.15 million). Additionally, MTN Nigeria provided an additional ₦9.4 billion ($5.62 million) to the mobile money business as part of the deal.
MTN Nigeria is yet to comment on the latest capital injection and strategic implications for the mobile money business.
Despite substantial investments, MoMo PSB has faced challenges in its growth trajectory. Regulatory hurdles, including delays in Central Bank approvals and stringent KYC requirements, have hindered user adoption. Active mobile money (MoMo PSB) wallets decreased by 21.8% to 2.8 million, according to MTN Nigeria’s recent report. The service also incurred substantial losses in its inaugural year, losing ₦9.5 billion to system glitches.
However, MTN Nigeria remains optimistic about the future of its mobile money business. The recent introduction of a cross-border payment service and the pursuit of additional licenses as a Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) are expected to drive growth and expand the service’s reach.
