Manny Ita –
MTN Nigeria Communications Plc has announced plans to divest a 60% stake in its fintech subsidiaries—MoMo Payment Service Bank and Y’ello Digital Financial Services—to MTN Group in a major intra-group restructuring valued at about ₦95.5 billion.
The transaction, disclosed ahead of the company’s Annual General Meeting, will see MTN Group acquire majority ownership through its fintech arm, while MTN Nigeria retains a 40% stake in both entities.
Under the deal structure, the acquisition will be executed through a combination of fresh capital injection into the fintech businesses and a secondary purchase of shares from MTN Nigeria. The total implied investment is estimated at ₦152.06 billion, reflecting both the equity acquisition and new funding commitments.
Following completion, both parties will consolidate their holdings under a newly created fintech holding company to be registered with the Central Bank of Nigeria, subject to regulatory approvals.
The move forms part of MTN Group’s broader strategy to scale its fintech operations across Africa, positioning the segment as a key growth driver alongside connectivity and digital infrastructure.
MTN Nigeria said the restructuring would reduce the financial burden of funding the fintech subsidiaries, which require substantial capital to expand, while allowing the telecom business to focus on strengthening its core network, improving service quality, and sustaining returns to shareholders.
Despite the partial divestment, shareholders will retain indirect exposure to the fintech business through MTN Nigeria’s 40% retained stake. The company also noted that the fintech subsidiaries are currently loss-making, and their separation is expected to improve overall financial performance.
MoMo PSB and Y’ello Digital Financial Services remain central to MTN Nigeria’s digital finance ambitions, offering mobile money, payments, and related services aimed at deepening financial inclusion across the country.
