Ghana’s financial system faces a growing systemic risk from MTN Ghana and its fintech subsidiary MobileMoney Limited (MoMo), which could one day “hold the nation to ransom” if left unchecked, Professor Stephen Adei has warned in a sharply critical keynote at the Ghana Corporate Finance Awards Gala Dinner.
“MTN is today probably the biggest corporate financial institution in Ghana, even if many citizens are not aware of it. If left unchecked, MTN will hold the nation to ransom one day. Mark my words,” said Prof. Adei, an economist and former board member of Bank of Baroda.
His warning comes amid a surge in mobile money usage that has turned MTN from a telecom operator into Ghana’s de facto largest financial services platform, controlling float deposits that analysts say exceed the deposit base of the entire traditional banking sector.
“These are float deposits that sit largely outside the formal banking system,” he warned. “They are not subject to the regulatory supervision that banks face, yet they influence liquidity, interest rates, and even the exchange rate.”
With over 15 million active users and daily transaction volumes running into hundreds of millions of cedis, MTN’s mobile money operations have become deeply embedded in Ghana’s financial fabric. But Prof. Adei argues that the company’s reach and lack of oversight now pose macroeconomic risks.
He cited concerns over remittance flows handled by MTN, where foreign exchange enters through fintech partners but is paid out locally in cedis, bypassing the Bank of Ghana’s reserves. “We are losing control over one of the most stable sources of forex inflow,” he said. “And we’re doing it in plain sight.”
Despite MTN Ghana’s classification as a significant market power (SMP) in telecoms in 2020, no equivalent regulation applies to its mobile money arm, which controls nearly 90% of the fintech market. The absence of legal tools to address this dominance in the financial sector was a central theme in Adei’s remarks.
The risk, according to Adei, extends to MTN’s foray into consumer credit. Through MoMo, the company disburses short-term, collateral-free loans via automated systems, raising questions about credit exposure and regulatory compliance. “There is zero transparency on credit exposure,” a banking consultant noted.
Prof. Adei urged the government to take bold action, including reclassifying MTN as a systemically important financial institution, bringing it under prudential regulation, and requiring full repatriation of forex from its partners. He also proposed directing a portion of MTN’s float into Domestic Debt Exchange Programme (DDEP) bonds to shore up liquidity in the banking sector.
“A company that can shape exchange rate trends, undermine fiscal tools, and operate like a bank without a licence must not be left to grow unchecked,” he said.
In his closing, Prof. Adei acknowledged the political risks of speaking out, noting that the Chair of MTN Ghana’s board is his former mentor. “I know I risk a serious reprimand for speaking out. But silence would be complicity.”
For Ghana’s policy environment, the implications are clear, failing to act may undermine monetary control, fiscal planning, and investor confidence.
“Without action, we risk currency instability, fiscal slippage, and a liquidity crunch in the banking sector,” he said. “Investors will lose confidence. And Ghana will lose control of its own financial future.” “Let’s not wait for the explosion,” he ended.
