MTN Group Fintech Agrees to Take 60% Stakes in MTN Nigeria's MoMo PSB and Y'ello Digital for N152.06 Billion

MTN Group Fintech has agreed to acquire 60% stakes in MTN Nigeria's MoMo Payment Service Bank and Y'ello Digital Financial Services for N152.06 billion, with an independent fairness opinion valuing the fintech subsidiaries at N95.5 billion, in a deal disclosed on 28 April 2026 ahead of MTN Nigeria's annual general meeting. The transaction gives MTN Group majority ownership of the two 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 N95.5 billion valuation represents a 2.1 times premium to the fintech subsidiaries' carrying value as of December 2025, and the N152.06 billion investment combines a primary injection of capital into the two fintech businesses with a secondary acquisition of shares from MTN Nigeria.

TWO-PHASE STRUCTURE

The transaction will be executed in two phases. In the first phase, MTN Group Fintech will acquire its 60% stakes through a combination of a primary injection of capital into the fintech subsidiaries and a secondary acquisition of shares directly from MTN Nigeria, establishing the 60/40 ownership split.

In the second phase, the two businesses are to be brought under a single Fintech HoldCo, which will be registered with the Central Bank of Nigeria and owned 60% by MTN Group Fintech and 40% by MTN Nigeria.

FUNDING THE FINTECH UNITS

MTN Nigeria said it has been the sole funder of the fintech subsidiaries so far, but that their continued growth demands far more capital than it can comfortably sustain alone.

The fintech subsidiaries are currently loss-making, and the restructuring will allow MTN Nigeria to deconsolidate their losses from its financial statements.

Completion of the transaction remains subject to regulatory approvals, including sign-off from the Central Bank of Nigeria. The transaction was disclosed ahead of MTN Nigeria's 30 April 2026 annual general meeting, as the transaction required shareholder approval at that meeting. Completion is targeted on or before 31 December 2026, subject to regulatory approvals.