MTN Plans to Secure Banking Licences and Build 150MW AI Data Centres in Nigeria and South Africa

MTN Group has revealed major expansion plans that could change how money and technology work across Africa. The telecommunications company is actively exploring banking licences in key African countries, including Nigeria, to expand its micro-lending business directly from its own balance sheet. At the same time, MTN is preparing to build massive artificial intelligence (AI) ready data centres in Nigeria and South Africa.

MTN Chief Executive Officer Ralph Mupita shared these updates, pointing out that the company wants to move beyond selling basic phone calls, text messages, and simple internet data. MTN wants to accept customer deposits directly and issue business and personal loans using its own financial reserves.

On the technology side, MTN is joining forces with a United Arab Emirates (UAE) investor to construct 150 megawatts of AI data centre capacity across Nigeria and South Africa.

These decisions mark one of the biggest moves by a telecom firm in Africa. MTN is working to transform itself into a combined financial provider and digital infrastructure operator.

Why MTN Wants a Direct Banking Licence

MTN already offers loans through its Mobile Money (MoMo) platform in several countries. However, the company currently operates mostly through partnerships with existing commercial banks. Under the current partnership model, a commercial bank provides the actual funds for the loan, while MTN provides the mobile network, customer access, and mobile wallet software.

While this partnership model has helped millions of people get quick access to money, MTN shares a large portion of the profits with its banking partners.

Getting a full banking licence or deposit-taking licence changes everything. With its own licence, MTN can keep customer deposits safely in its own accounts and lend that money out directly. Moving to balance-sheet lending allows MTN to earn higher profits from interest payments instead of just taking a small commission fee.

Ralph Mupita explained that lending has become the fastest-growing part of MTN’s financial ecosystem. As mobile wallet balances grow larger across the continent, taking deposits and issuing direct loans is the next logical step for the business.

The Shift from Voice Calls to Financial Services

For many years, telecom companies made most of their money from traditional voice calls and SMS text messages. Over time, that income stream has slowed down because millions of people now use internet-based calling apps.

To keep growing, telecom companies are focusing heavily on what they call advanced services. Advanced services include digital payments, cross-border money transfers, online shopping checkout systems, and financial lending.

MTN operates across 19 markets and serves more than 315 million customers. Its mobile money platform processed over $300 billion in transactions in recent periods, making it one of the largest financial ecosystems on the continent.

By shifting from basic airtime sales to full financial services, MTN is positioning itself as a core part of daily life for consumers and small business owners.

Understanding the Banking Rules in Nigeria

Nigeria is MTN’s largest single market by revenue and subscriber count. However, operating financial services in Nigeria comes with specific regulatory rules set by the Central Bank of Nigeria (CBN).

In 2022, MTN received official approval from the Central Bank of Nigeria to launch its MoMo Payment Service Bank (PSB). A Payment Service Bank licence allows MTN to offer several useful financial features:

• Open customer wallets using simple phone numbers.
• Accept cash deposits and process peer-to-peer transfers.
• Issue debit cards for online and ATM use.
• Provide payment gateways for small businesses and merchants.

However, a Payment Service Bank licence has strict limits under Nigerian financial regulations. A PSB cannot grant direct loans using its own deposit money. It cannot engage in foreign exchange trading for individual retail customers, and it cannot offer the full range of credit facilities that full commercial banks offer.

Because of these rules, MTN has had to work alongside licensed commercial banks whenever it wanted to offer credit or micro-loans to Nigerian users. If MTN successfully secures direct banking licences or expanded permissions, it can bypass these limitations, accept full savings deposits, and offer direct credit facilities off its own balance sheet.

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Competing with Digital Banks and Financial Platforms

Nigeria’s financial technology market is one of the most competitive in the world. Over the past few years, digital financial platforms like OPay, Moniepoint, and PalmPay have grown rapidly across cities and rural communities. They gained market share by offering fast money transfers, zero-fee structures, and easy POS payment terminals for local traders.

At the same time, traditional commercial banks like Access Bank, Zenith Bank, and GTBank have built powerful mobile apps and USSD codes to hold onto their customer base.

MTN entering the direct lending market creates major competition for both digital apps and traditional banks. MTN possesses one key advantage that standalone fintech apps do not have: deep mobile network access.

Every single mobile phone that uses an MTN SIM card can interact directly with MTN financial services without downloading heavy apps or using complex registration processes. By combining cell phone service with direct bank lending, MTN can reach millions of unbanked and underbanked people in remote areas where physical bank branches do not exist.

Building 150MW AI-Enabled Data Centres in Nigeria and South Africa

Lending is only one part of MTN’s new announcement. The company is also making a major investment in physical digital infrastructure to power artificial intelligence across Africa.

MTN plans to build AI-enabled data centres with an initial combined capacity of 150 megawatts (MW) in Nigeria and South Africa. The project will be carried out through a joint venture firm called Africa Data Hub Holding.

MTN is partnering with an investor backed by the United Arab Emirates (UAE). Under the terms of the deal:

• MTN will act as a minority investor in the joint venture.
• The UAE-backed partner will provide most of the financial capital required for construction.
• The UAE partner will bring technical expertise gained from constructing large data centres in the Middle East.
• MTN will contribute land, regional connectivity networks, and existing telecom infrastructure.

Why Artificial Intelligence Requires Special Data Centres

Many people wonder how an AI data centre is different from a regular cloud server building.

A regular data centre holds basic website files, business documents, software databases, and emails. An artificial intelligence data centre is built for far more intense tasks.

AI systems require powerful computer processors (GPUs) that process billions of calculations every second. These processors generate huge amounts of heat and require specialized liquid cooling equipment to stop them from overheating. They also draw immense amounts of electrical power compared to traditional servers.

Currently, Africa accounts for a tiny percentage of the world’s total data centre capacity. Most artificial intelligence software used in Africa relies on server farms located thousands of miles away in Europe, Asia, or North America.

When an artificial intelligence request travels across continents over subsea internet cables, it causes small delays called latency. It also increases costs for local African companies that must pay foreign cloud providers in foreign currencies like US Dollars.

Building 150MW of AI data centre capacity directly in Nigeria and South Africa means software models can process data locally. Local processing makes artificial intelligence applications run much faster, costs less money, and keeps sensitive data inside the country where it is generated.

How AI Infrastructure Benefits Local Creators and Businesses

Having strong local data infrastructure changes how businesses and individuals operate across the continent. As artificial intelligence becomes part of daily tools, fast local computing power will make a real difference.

For instance, many modern digital creators use intelligent software to produce content, organize workflows, and manage online video production. If you want to see how creators use modern digital strategies to build online income, take a look at our guide on YouTube automation. These workflows rely on fast cloud connections and automated digital tools.

Local AI data centres will allow tech founders, bank developers, and media creators to run heavy automation software locally without facing delays or sky-high foreign cloud bills.

You can explore more updates on computing, software trends, and modern tech by visiting our technology and AI category.

What Could Slow Down MTN’s Expansion Plans?

While these plans represent a major leap forward, MTN faces significant real-world challenges in carrying out both projects.

Power and Electricity Demands

Data centres cannot suffer power cuts for even a single second. Operating 150 megawatts of continuous server capacity in Nigeria—where national power grid supply can be unstable—requires massive extra investments in independent power generation. MTN and its UAE partner will need to build private solar arrays, natural gas plants, and heavy battery storage systems to keep the data centres running 24/7.

Credit Risk and Loan Defaults

Lending money from a telecom company’s own balance sheet brings serious financial risk. If economic conditions worsen or inflation rises, borrowers may struggle to pay back their micro-loans.

When MTN worked with bank partners, the commercial banks took on much of that credit risk. Lending directly means MTN takes full loss responsibility if people default on loans. This is why Ralph Mupita stressed that MTN will move into balance-sheet lending gradually and selectively, choosing only markets with high wallet activity and strong credit tracking.

Regulatory Inspections and Banking Approval

Central banks protect public savings very carefully. Getting full direct banking permissions requires strict compliance audits, anti-money-laundering systems, large reserve deposits, and close daily supervision from banking authorities like the Central Bank of Nigeria. Securing these licences can take significant time.

Frequently Asked Questions

Is MTN turning into a regular commercial bank in Nigeria right now?

MTN is actively exploring direct banking licences in selected African markets where it has large customer bases. In Nigeria, MTN currently operates under a Payment Service Bank (PSB) licence. Moving to direct balance-sheet lending will require specific regulatory permissions or structures from central bank authorities.

Will my regular MTN SIM card or MoMo wallet change?

Your SIM card and mobile wallet will continue to work as normal. Over time, as MTN expands its financial permissions, users may see new features inside their MoMo wallet, including direct interest-bearing savings options and micro-loans issued directly by MTN.

Why are AI data centres important for Nigeria?

Most artificial intelligence tools currently rely on servers located overseas. Building 150MW AI-ready data centres in Nigeria and South Africa allows local companies to process data locally. This makes digital apps faster, lowers cloud costs, and creates jobs in technical infrastructure.

Will MTN stop working with regular commercial banks?

No. MTN confirmed that even as it moves toward direct balance-sheet lending in select areas, it will continue partnering with traditional commercial banks for various financial operations across its 19 African markets.

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What This Means for the Future of African Tech and Finance

MTN’s strategy shows how fast the line between telecommunications, banking, and artificial intelligence is disappearing. By transforming its network into a direct lending machine and building heavy computing power for AI, MTN is setting the standard for how telecom firms will operate over the next decade.

If MTN successfully carries out these plans, millions of small business owners in Nigeria and across Africa will gain access to direct credit straight from their mobile phones. At the same time, local software developers will finally have access to modern AI data center infrastructure right on home soil.

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