In a surprising turn of events, Eli Hini, the CEO of MTN’s MoMo Payment Service Bank (PSB), and Elsa Muzzolini, the Chief Commercial Officer (CCO), have both left the company, marking a significant leadership change at the fintech subsidiary. Muzzolini has already transitioned to a new role as CEO of M-PESA Ethiopia, Safaricom’s mobile money business, effective July 15, 2024, while Hini’s next steps remain undisclosed following his departure in June 2024.
Leadership Changes and New Roles
Muzzolini, who informed her colleagues of her resignation on July 12, also updated her LinkedIn profile to reflect her new position at M-PESA Ethiopia. This move highlights her continued commitment to driving the growth of mobile money services across Africa. In contrast, there is little information on whether Hini has secured another role since his departure.
Both Hini and Muzzolini joined MoMo PSB in 2022, during a crucial period as the company focused on expanding its presence and services in Nigeria’s competitive fintech landscape. Their leadership has been instrumental in implementing growth strategies that have significantly impacted the company’s performance.
Strategic Investments and Fintech Growth
The departures come at a time when MTN Nigeria is doubling down on its investment in MoMo PSB to boost its market share and increase the adoption of its mobile money app, particularly as it faces challenges in its core telecom business. Under Hini and Muzzolini’s leadership, MoMo PSB saw its mobile money wallets grow by 55.8%, reaching 5.5 million in the first half of 2024, up from 3.1 million in the same period the previous year. Additionally, fintech revenue rose by 11%, largely driven by the increased adoption of the MoMo app.
However, the competitive landscape remains intense, with Airtel’s mobile money business, which plans to go public in 2025, growing its customer base by 14.9% to 39.5 million.
Corporate Restructuring and Future Prospects
On August 5, 2024, MTN Nigeria made a strategic move by paying ₦6.95 billion to acquire Acxani Capital Limited, the minority shareholder in MoMo PSB. This buyout gives MTN Nigeria full control over the fintech unit, enabling it to inject more capital and strengthen MoMo PSB’s operations. As part of this restructuring, MoMo PSB received an additional ₦9.4 billion from MTN Nigeria to support its growth ambitions.
With the exits of Hini and Muzzolini, Phrase Lubega, the group executive for fintech commercial operations at MTN, has been appointed as the acting CEO of MoMo PSB, pending approval from the Central Bank of Nigeria (CBN). His leadership will be crucial in steering the company through this transitional period and capitalizing on the investments made to secure MoMo PSB’s position in the fintech market.
Conclusion
The leadership changes at MoMo PSB signal a period of transition and strategic realignment for MTN’s fintech ambitions in Nigeria. As the company continues to invest heavily in its fintech unit, the focus will be on sustaining growth, increasing market share, and navigating the competitive challenges posed by other players in the industry. The coming months will be pivotal in determining how these changes will impact MoMo PSB’s trajectory and its role in MTN Nigeria’s broader business strategy.