MTN Group Fintech has agreed to acquire 60% stakes in MTN Nigeria's MoMo Payment Service Bank and Y'ello Digital Financial Services for a combined N95.5 billion, in a deal disclosed on 29 April 2026 ahead of MTN Nigeria's annual general meeting. The transaction consolidates group-level ownership of two of the pan-African operator's most closely watched fintech businesses.
MTN Nigeria will retain 40% of each entity following completion, with the balance held by MTN Group Fintech, a dedicated subsidiary of the South African parent. The transaction is structured on a debt-free, cash-free basis, with an implied total capital injection of approximately N152.06 billion into the two fintech businesses.
TWO-PHASE STRUCTURE
The transaction will be executed in two phases. In the first phase, MTN Group Fintech will subscribe for newly issued shares and undertake a secondary acquisition of existing shares in MoMo Payment Service Bank. That step establishes the 60/40 ownership split at each fintech entity and provides the initial capital to accelerate build-out of the businesses.
In the second phase, the two businesses are to be brought under a single Fintech HoldCo, which will be owned 60% by MTN Group Fintech and 40% by MTN Nigeria. The HoldCo structure is designed to simplify governance, capital allocation and future investment across the group's Nigerian fintech operations, and to make it easier to plug in additional products or partnerships as the platform grows.
The combined N95.5 billion consideration and the implied N152.06 billion capital injection are among the largest fintech-focused transactions announced in the Nigerian market. The size of the deal reflects both the ambition of MTN Group's fintech strategy and the intensity of competition in Nigerian mobile money and payments, where local banks, telecoms operators and standalone fintechs are all vying for share.
STRATEGIC PIVOT FOR MTN
For MTN Group, chaired by chief executive Ralph Mupita, the transaction reflects a strategic pivot to running its fintech activities as a distinct pillar alongside its core telecoms business. Group management has repeatedly argued that value in African fintech will accrue to those able to combine scale, licences and technology across multiple markets, and consolidating control in Nigeria is a prerequisite for executing that plan in the group's largest fintech opportunity.
For MTN Nigeria, retaining a 40% economic interest in the two fintech businesses preserves upside exposure while releasing capital and management focus. MoMo Payment Service Bank has been at the centre of MTN's push into mobile money in Nigeria, one of the most closely regulated fintech markets on the continent, while Y'ello Digital houses ancillary financial services activities that complement the payments franchise.
Completion of the transaction remains subject to regulatory approvals, including sign-off from Nigerian authorities responsible for payments, banking and competition oversight. The transaction was disclosed ahead of MTN Nigeria's 30 April 2026 annual general meeting, giving minority shareholders time to review the terms before engaging with management on the strategic and financial implications of the deal. Neither party has disclosed a target date for completion, though the two-phase structure implies that final consolidation of the Fintech HoldCo will follow the initial share subscription by some months.