MTN Targets Full Recovery of Nigeria Airtime Advance by Year-End

By Adedapo Adesanya

MTN Group expects its airtime credit business in Nigeria to return to pre-suspension levels by the end of 2026, as the telecommunications company works to rebuild the service following disruptions that weighed on its fintech revenue growth.

The telecommunications company disclosed this in its latest trading update for the nine months ended September 30, 2026, noting that the restoration of the Nigerian service was expected to support improved fintech performance in the coming months.

Despite the setback, MTN recorded stronger growth across its fintech operations, with MoMo revenue, excluding Airtime Advance, increasing by 18.5 per cent in the first nine months of the year. Growth accelerated to 19.9 per cent in the third quarter, reflecting increased contributions from advanced financial services.

Revenue from advanced services rose by 32.4 per cent, while fintech transaction value increased by 36.9 per cent to $512.5 billion, indicating sustained adoption of the group’s digital financial services.

MTN said rebuilding Airtime Advance in Nigeria remained a priority, alongside efforts to sustain growth in advanced services and improve the overall contribution of fintech to its business.

The fintech outlook comes as the group reported stronger financial performance during the period, supported by improved contributions from its West African operations, particularly Nigeria and Ghana.

Group service revenue grew by 17.2 per cent to R176.2 billion in constant-currency terms in the nine months to September, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 22.9 per cent to R86.0 billion.

The EBITDA margin also expanded by 2.8 percentage points to 47.9 per cent, reflecting improved operating efficiency and cost management.

For the third quarter, service revenue increased by 16.6 per cent, while EBITDA rose by 20.1 per cent, as MTN recorded stronger commercial momentum across several of its markets.

Nigeria remained a major growth driver, with service revenue increasing by 19.7 per cent in the third quarter, compared with 13.2 per cent in the preceding quarter. Growth further accelerated to 21.6 per cent in September.

MTN Nigeria’s EBITDA also rose by 32.8 per cent, supported by stronger revenue performance and cost control.

The group said the restoration of Airtime Advance had contributed to an improved commercial outlook in Nigeria, with further recovery expected before the end of the year.

Ghana also recorded strong growth, with service revenue rising by 35.7 per cent in the third quarter, while EBITDA increased by 42.1 per cent. Data, voice, digital services and Mobile Money contributed to the performance.

Across its operations, MTN’s customer base reached 323 million as of September 30, including 181.7 million active data subscribers and 70.3 million active Mobile Money users.

Data traffic increased by 27.3 per cent to 22,754 petabytes, highlighting growing demand for digital connectivity and data services.

The group generated free cash flow of R22.4 billion during the nine months and upstreamed R21.4 billion to its holding company.

Its net debt-to-EBITDA ratio stood at 0.2 times at the end of September, providing room for further investment and shareholder returns.

Meanwhile, MTN’s acquisition of IHS Holdings is progressing, following approval from IHS shareholders and regulatory clearances in Nigeria and the Common Market for Eastern and Southern Africa (COMESA).

The remaining regulatory processes are ongoing, with completion expected before the end of 2026.

MTN said its priorities for the remainder of the year include sustaining growth in its major markets, improving earnings and revenue performance, rebuilding its Nigerian Airtime Advance business and bringing fintech growth closer to its medium-term ambitions.