MTN Nigeria Communications Plc has announced plans to sell a 60 per cent stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services (YDF), to its parent company in a ₦152.06 billion transaction.
The deal will see MTN Group acquire majority ownership through its fintech arm, MTN Group Fintech B.V., while MTN Nigeria retains a 40 per cent stake.
The proposal was disclosed in a shareholder FAQ ahead of the company’s Annual General Meeting scheduled for April 30, 2026, where investors will vote on the transaction.
According to MTN Nigeria, the restructuring aligns with MTN Group’s “Ambition 2030” strategy to position itself as Africa’s leading connectivity, fintech, and digital infrastructure powerhouse.
Under the arrangement, MTN Group will inject fresh capital into the fintech subsidiaries and also acquire additional shares from MTN Nigeria. Both parties will later consolidate their holdings under a new structure to be registered with the Central Bank of Nigeria.
MTN Nigeria said the deal is designed to strengthen the fintech businesses, which currently require significant funding to scale operations and expand across Nigeria’s digital financial services market.
A fairness opinion issued by KPMG valued the transaction at ₦95.5 billion, describing it as fair and reasonable. MTN added that the valuation reflects a 2.1x premium over the subsidiaries’ carrying value as of December 2025.
The company noted that MoMo PSB and YDF are currently loss-making units, and separating them from MTN Nigeria’s core operations is expected to improve overall financial performance and strengthen cash flow.
MTN Nigeria said the move would also allow it to focus more on its core telecom business, strengthen network quality, and support stable shareholder returns.
Importantly, the company assured shareholders that their holdings in MTN Nigeria will remain unchanged, while still maintaining indirect exposure to the fintech business through the retained 40 per cent stake.
If approved, the transaction will proceed through regulatory and legal approvals, with completion targeted on or before December 31, 2026.
Fintech remains a key growth driver for MTN Nigeria. In 2025, the segment recorded strong performance, with revenue rising 79.7 per cent year-on-year, supported by higher transaction volumes, interest income, and expanded digital services.
Active wallets grew to 3.7 million by December 2025, while customer deposits surged 156.1 per cent year-on-year, boosting float income and agent network activity.
The proposed restructuring marks a strategic shift as MTN seeks to scale fintech growth while sharpening focus on its core telecom operations.
