Introduction
In a significant leadership shift, MTN’s MoMo Payment Service Bank (PSB) has seen the departure of two key executives. Eli Hini, the CEO, and Elsa Muzzolini, the Chief Commercial Officer, have both exited the fintech company, marking a notable change in its executive team.
Leadership Transitions: New Roles and Uncertain Futures
Elsa Muzzolini has embarked on a new chapter as the CEO of M-PESA Ethiopia, a mobile money venture under Safaricom, with her official start on July 15. Prior to leaving MoMo PSB, Muzzolini communicated her resignation to the team in a memo dated July 12 and publicly updated her professional transition on LinkedIn. Eli Hini, who stepped down in June 2024, has yet to reveal his next professional move, leaving industry watchers curious about his future endeavors.
Impact on MoMo PSB’s Strategic Direction
Both Hini and Muzzolini were instrumental in driving MoMo PSB’s expansion within the Nigerian market since joining the company in 2022. Their sudden departures come at a crucial time as MTN Nigeria intensifies its focus on fintech operations. This strategic shift is part of MTN’s broader effort to enhance customer wallet shares and increase application usage, particularly as the company navigates challenges in its core telecommunications business.
Interim Leadership and Regulatory Approval
In response to the leadership changes, Phrase Lubega, who currently oversees fintech commercial operations at the group level, has been appointed as the acting CEO of MoMo PSB. His appointment is currently awaiting approval from the Central Bank of Nigeria (CBN), according to sources familiar with the situation. Lubega’s interim leadership is expected to guide MoMo PSB through this transitional phase.
MoMo PSB’s Growth Amidst Market Competition
Despite the executive shake-up, MoMo PSB has experienced substantial growth. During the first half of 2024, the company reported a 55.8% increase in mobile money wallets, reaching 5.5 million users compared to 3.1 million in the first half of 2023. This surge in user base contributed to an 11% rise in fintech revenue, driven by the increased adoption of the wallet and MoMo app. In comparison, Airtel’s mobile money service, which is preparing for a public offering in 2025, saw its customer base grow by 14.9% to 39.5 million.
Strategic Acquisition and Investment
In a strategic move to strengthen its fintech subsidiary, MTN Nigeria acquired Acxani Capital Limited’s minority stake in MoMo PSB on August 5, 2024, for ₦6.95 billion. This acquisition allowed MTN Nigeria to consolidate its control over MoMo PSB, as detailed in a regulatory filing. Additionally, MTN Nigeria invested an additional ₦9.4 billion into MoMo PSB as part of the transaction. These actions underscore MTN’s commitment to bolstering MoMo PSB’s operational capabilities and driving its growth in the competitive fintech landscape.
Looking Ahead
As MoMo PSB navigates this period of leadership transition and strategic growth, the company’s future direction will be closely watched. The departure of key executives, coupled with MTN Nigeria’s strategic investments, highlights the evolving dynamics within the fintech space. With a strong growth trajectory and renewed focus on expansion, MoMo PSB is poised to continue its ascent in the mobile money sector, both in Nigeria and beyond.
