For N6.95 billion, MTN Nigeria acquired a minority stake in MoMo Payment Service Bank (MoMo PSB). As to the corporate declaration available on the NGX website, MTN Nigeria has successfully acquired Acxani Capital’s 7.17% investment in MoMo PSB, thereby transforming MoMo PSB into a fully-owned subsidiary of MTN Nigeria.
The CBN granted a licence to MTN Nigeria’s fintech solution, MoMo PSB, in 2022. Acxani Capital owned 20% of the company, while MTN Nigeria owned 80% of it.
In May 2024, Acxani suggested selling their 20% ownership in MoMo; however, the stake was reduced to 7.17%. Acxani Capital and MTN Nigeria reached an N6.95 billion deal for the 7.17% share.
Because the business paid N16.35 billion on the acquisition of the minority interest and N3.38 billion on assets from Acxani Capital, the transaction resulted in a N12.97 billion reduction in MTN’s “Other Reserves.”
BrandSpur banking and finance news reports that the N6.95 billion paid to; Acxani and the N9.4 billion invested in MoMo were included in the N16.35 billion spent as purchase consideration.
Also read: https://brandspurng.com/2024/08/05/the-place-of-refinery-in-the-nigerian-economy/
Growth of MoMo PSB in Nigeria According to reports at the end of the second quarter of 2024, MoMo PSB’s active wallet reached 5.5 million, up 701,000 from the previous quarter.
MoMo PSB reported revenue of N48.6 billion for the first half of 2024, an increase of 11% over the N43.6 billion reported for the same period in 2023. The primary factor propelling MoMo’s expansion was Xtratime, the airtime loan platform.
During the half-year, the company’s agent count climbed by roughly 498,000 to 239,000, and the number of transactions increased by 33.4% on an annual basis.
Continuing, cash held for MoMo PSB customers fell from N7.6 billion at the end of FYE 2023 to N2.15 billion in H1 2024, a 72% decrease. As of H1 2024, the company owed MTN Nigeria around N26.6 billion, but it had also paid the group N11.2 billion in the previous six months.
About Acxani Capital
Munir Ja’afaru, a prince of the Zazzau Emirate and a former director of the now-defunct NITEL, is the owner of Acxani Capital. He formerly held the position of chairman of the National Export Processing Zones Authority (NEPZA) until 2004. He was the former district head of Basawa in Zaria.
Since Acxani Capital Limited doesn’t have a working website, there is very little information available about them. Nonetheless, Munir Ja’afaru is also associated with Novare Fund Manager Limited, an asset management firm catering to the Sub-Saharan African real estate market.
