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Nigeria’s mobile money market has recently emerged as the fastest-growing financial services sector in the country. This was made evident in Q1 2025 when transactions hit ₦20.71 trillion ($13.49 billion), according to the Nigeria Inter-Bank Settlement System (NIBSS). Furthermore, the development marked a remarkable 1,518.64% jump from the ₦1.28 trillion ($833.43 million) recorded in Q1 2021.
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Significantly, Fintech heavyweights like OPay and PalmPay dominate this growth. In addition, the two Fintech giants process millions of daily transactions and have become household names in Nigeria. However, contradictorily, telcos such as Airtel are still trying to establish a foothold.
Airtel’s Position in the Market
By record, Airtel is Nigeria’s second-largest telecom operator, with over 56 million subscribers. However, the company struggles with mobile money. The company launched SmartCash Payment Service Bank (PSB) to capture mobile money opportunities. However, regulatory restrictions, steep capital requirements, and a late start have reduced its growth in Nigeria’s mobile money market.
Sunil Taldar, CEO of Airtel Africa, acknowledged this on the company’s July 2025 earnings call. The Team Lead established that Nigeria has a more competitive fintech terrain than many other African markets.
Why Fintechs Lead in Nigeria
TechPolyp discovers that there are currently 17 Central Bank of Nigeria (CBN)-licensed mobile money operators. But amongst them, OPay and PalmPay dominate Nigeria’s mobile money market space. To give credence to this claim, OPay reported 10 million daily active users and 100 million daily transactions in 2024. Besides, PalmPay also disclosed that it now processes 15 million daily transactions.
TechPolyp observes that their early entry, aggressive agent network expansion, and innovative products helped them build momentum. Moving forward, offering debit cards, lending, savings, and other services, fintech brands went beyond simple transfers. This development is a defining strategy that contrasts with telcos in Nigeria, who face stricter restrictions on their services.
Regulatory Fireworks Holding Back Telcos in Nigeria’s Mobile Money Market
Nigeria’s mobile money market operates under a bank-led model, unlike Kenya or Ghana. In 2018, the CBN introduced Payment Service Banks (PSBs) to allow telcos to participate. However, these PSBs come with conditions. One is that they must target at least 25% of their operations in rural areas. Two is that they cannot issue loans. Additionally, they need a minimum ₦5 billion capital base, compared to ₦2 billion for other operators.
Furthermore, PSBs include MTN’s MoMo, Airtel’s SmartCash, 9mobile’s 9PSB, and Globacom’s Money Master. Meanwhile, according to GSMA, the global telecom body, these restrictions make it harder for telcos to compete.
Telcos vs Fintechs in Africa
In countries like Kenya and Ghana, telcos dominate Nigeria’s mobile money market. Kenya’s M-Pesa is a global success story, thriving in a flexible regulatory environment. However, Nigeria is different. Here, fintech brands have the advantage due to the CBN’s bank-led model. Consequently, telcos are infrastructure providers rather than full-service financial players.
Furthermore, industry leaders in Nigeria have argued this slows penetration. Gbenga Adebayo, chairman of ALTON, once said telcos had the reach to lead financial inclusion.
Airtel’s Performance in Nigeria’s Mobile Money Market So Far
Despite the underlying challenges, Airtel has been making significant progress. Nigeria is still a small portion of Airtel’s mobile money base of 46 million users and $290 million in revenue. Nevertheless, growth is visible. Specifically, Airtel SmartCash Nigeria generated $2 million in Q2 2025, double its 2024 revenue.
In a significant show of stride, active users rose to 1.5 million by December 2024. While that was ongoing, transaction value grew 3.6 times year-on-year by mid-2025. The company is still in its customer acquisition phase, focusing on scale rather than profitability.
Nigeria’s Mobile Money Market: Airtel’s Strategy to Catch Up
Furthermore, Airtel is leaning on its brand, vast agent network, and digital capabilities. The telco already has 100,000 agents, mirroring the early strategies of OPay and PalmPay.
Progressively, it is also looking to expand SmartCash beyond basic transfers. Like its fintech rivals, Airtel is considering debit cards, savings, bill payments, and more. Additionally, CEO Sunil Taldar stressed the importance of meeting customer needs across different use cases.
In urban areas, Airtel aims to enhance its digital offerings. In rural areas, it hopes to leverage its existing relationship with millions of customers.
Comparing Airtel with MTN
Airtel isn’t running an isolated struggle in Nigeria’s mobile money market. MTN, Nigeria’s biggest telco, is also trying to scale fintech services. Moreover, the fintech revenue relies heavily on airtime lending, which grew 71.83% in H1 2025. However, MTN’s active wallet base declined by 6.1% to 2.7 million in the same period.
In addition, both telecommunications companies face stiff competition from fintech brands that are faster, leaner, and more customer-driven.
Looking Ahead
While Airtel lags, opportunities remain. Significantly, the remittances market alone reached $34 billion globally via mobile money in 2024. Over 70% originated from Sub-Saharan Africa, making Nigeria a potential growth hub.
Additionally, if regulations ease, Airtel could expand into micro-lending, insurance, and savings products. GSMA has already argued that more flexibility could boost adoption and financial inclusion.
For now, Airtel is betting on patience. Moving forward, as Taldar said, Nigeria’s mobile money market is too big to ignore. Given the size and potential, Airtel believes it’s only a matter of time before momentum shifts. Nigeria’s mobile money market is one of the most dynamic in the world. Impliedly, fintech leaders OPay and PalmPay dominate thanks to innovation and early execution, while telcos like Airtel face regulatory roadblocks, late entry, and stiff competition.
Perhaps, with more time and regulations, the two will favour Airtel and others in Nigeria’s mobile money market. Until then, fintechs remain firmly in the lead.
