MTN MOMO PSB in Turmoil As Both CEO, CCO Quit

According to P.M. Express, Muzzolini communicated her resignation via a direct message to MoMo employees on July 12th, adding to the unexpected departures at the forefront of the fintech organization.

Muzzolini’s new position as CEO of M-PESA Ethiopia, Safaricom’s mobile money business, was revealed through her LinkedIn profile updates, highlighting her transition from MTN’s MoMo Payment Service Bank to her new role, effective July 15th, 2024.

However, no such clarity has emerged with regard to Eli Hini, whose future career plans remain unknown as of June 2024, following his departure from MTN’s fintech subsidiary. The ambiguity surrounding Hini’s next move leaves unanswered questions in the minds of industry watchers and stakeholders.

Both Hini and Muzzolini joined MoMo PSB in 2022, where they played key roles in driving the fintech’s growth strategies in Nigeria.

Their exits come at a crucial time as MTN Nigeria increases its investment in MoMo PSB to boost its market share in mobile wallets and app adoption, following challenges in its core telecom business.

Phrase Lubega, MTN’s Head of Fintech, has been named as the new CEO, although his appointment is pending approval from the Central Bank of Nigeria, according to a source with direct knowledge of the situation.

MTN has yet to respond to requests for comment.

MoMo PSB has seen significant growth under Hini and Muzzolini’s leadership.

In the first half of 2024, the number of mobile money wallets grew by 55.8%, reaching 5.5 million, up from 3.1 million in the same period in 2023.

Fintech revenue also increased by 11%, driven by higher adoption of mobile wallets and the MoMo app.

In comparison, Airtel’s mobile money service, which is slated to go public in 2025, reported a 14.9% increase in its customer base, reaching 39.5 million.

In a strategic move to strengthen MoMo PSB’s operations and position it for further growth, MTN Nigeria on August 5, 2024, paid ₦6.95 billion to acquire Acxani Capital Limited, the minority shareholder of MoMo PSB.

This transaction, detailed in a regulatory filing, gives MTN Nigeria full control of the fintech unit and allows for additional investment.

As part of the deal, MoMo PSB received an extra ₦9.4 billion from MTN Nigeria.