In a notable shift within MTN’s fintech sector, Eli Hini, the Chief Executive Officer of MTN’s MoMo Payment Service Bank (PSB), has stepped down from his role. His resignation, officially marked on June 30, 2024, was finalized last month. Hini, celebrated as the “Father of MoMo” for his pioneering role in mobile money in Ghana, is currently exploring new opportunities but is taking a brief hiatus before committing to his next venture.
Joining Hini in this leadership transition is Elsa Muzzolini, the former Chief Commercial Officer at MoMo PSB. Muzzolini has transitioned to become the CEO of M-PESA Ethiopia, Safaricom’s mobile money arm, effective July 15. Her resignation was announced to employees on July 12 and updated on her LinkedIn profile shortly thereafter.
Their departure comes at a critical time for MTN Nigeria, which is ramping up investments in its fintech operations. This strategic move aims to bolster its market share in mobile wallets and enhance app adoption amidst a challenging period for its core telecom business.
As part of its efforts to consolidate its fintech operations, MTN Nigeria acquired a ₦6.95 billion stake from Acxani Capital Limited, the minority shareholder in MoMo PSB. This acquisition, completed on August 5, 2024, grants MTN full control over the fintech unit, allowing it to channel an additional ₦9.4 billion in investment towards expanding MoMo’s operations.
In the first half of 2024, MoMo PSB saw impressive growth, with mobile money wallets increasing by 55.8% to 5.5 million, up from 3.1 million in the same period the previous year. Fintech revenue also grew by 11%, driven by the rise in wallet adoption and MoMo app usage. Despite this success, MTN Nigeria’s intensified focus on fintech is a clear response to setbacks in its telecommunications sector.
Phrase Lubega, the Group Executive for Fintech Commercial Operations, has been appointed as the interim CEO of MoMo PSB, pending approval from the Central Bank of Nigeria. MTN has yet to issue an official statement regarding these leadership changes.