Kelvin Bowoto
MTN Nigeria, one of Nigeria’s leading telecom companies, has recovered more than half of the ₦22 billion lost in May 2022 due to a problem in its Mobile Money service. The episode, which occurred one week after the mobile money service was launched, exemplifies the scope of fraud in Nigeria’s financial services industry.
MTN Nigeria will bear the remaining ₦9.5 billion ($5.97 million) due to a shared services cost agreement with MoMo service, while ₦12.5 billion ($7.85 million) has already been recovered. “MTN Nigeria has fully provided for this amount,” according to a statement in its 2023 financials.
As previously reported, MoMo is gaining traction in Nigeria.
“The development of the business has been slower than anticipated,” remarked Toriola, MTN Nigeria’s CEO, in the 2023 full-year report.
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Delays in Central Bank regulatory approvals, as well as many prospective clients’ inability to meet the NIN requirement for Know Your Customer (KYC), hampered MoMo’s expansion.
Toriola, on the other hand, stated his happiness with the MoMo PSB wallet base’s success, claiming that monthly active users climbed from 3.3 million to 5.3 million over the course of the year. This expansion was fueled by 326,000 MoMo agents and 324,000 merchants in its ecosystem.
MoMo PSB is hopeful about expanding its reach through consumer education and leveraging its distribution network. Fintech intends to add cross-border remittances to increase adoption and revenue. “We will leverage the momentum from Q4 to accelerate the growth of wallets and the adoption of services as we expand our merchant ecosystem,” he said.
Techrectory with Agency Report.
