MTN Nigeria has announced plans for its parent company, MTN Group, to acquire a 60 percent equity stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services, in a transaction valued at N95.5 billion. The move marks a significant restructuring of the company’s financial services operations.
MoMo operates as a payment service bank providing digital financial solutions such as deposits, transfers, and mobile wallets, while Y’ello Digital functions as a super-agent offering agency banking services including cash transactions and bill payments. Both entities form a key part of MTN’s expanding fintech ecosystem in Nigeria.
Brandspur Banking News Desk reports that the transaction will be executed through MTN Group Fintech, a subsidiary of MTN Group, and is structured in two phases. The first phase involves the acquisition of majority stakes in the fintech businesses through a mix of new share issuance and partial share sales, alongside a capital injection exceeding N150 billion to strengthen operations and growth capacity.
In the second phase, a new financial holding structure—Fintech HoldCo—will be established, with ownership split between MTN Group Fintech and MTN Nigeria. Subject to regulatory approval from the Central Bank of Nigeria, the holding company will consolidate full ownership of both fintech entities.
MTN Nigeria stated that the restructuring is designed to spread financial and operational risks associated with its fintech ventures, including regulatory obligations and potential losses, while unlocking long-term value. Shareholders are expected to deliberate on the proposal at an upcoming Annual General Meeting.
The development follows MTN Nigeria’s earlier move to fully acquire MoMo, positioning the group for a more centralised and capital-efficient fintech strategy in one of Africa’s fastest-growing digital payments markets.
