MTN Group acquires 60% of MTN Nigeria fintech activities
Updated
Updated · Financial Afrik · Apr 30
MTN Group acquires 60% of MTN Nigeria fintech activities
5 articles · Updated · Financial Afrik · Apr 30
The roughly $60 million deal covers MoMo Payment Service Bank and Y’ello Digital Financial Services, with MTN Nigeria retaining 40% in the first phase.
MTN Group Fintech will execute the transaction through new shares and a partial buyback, alongside a planned 152 billion naira capital injection in cash, assets or both.
A second phase would place both businesses under Fintech HoldCo, pending Central Bank of Nigeria approval, as MTN Nigeria seeks to reduce exposure to loss-making fintech operations.
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MTN’s ₦152 Billion Capital Injection to Scale Nigerian Fintech Units Under New Fintech HoldCo
Overview
On April 30, 2026, MTN Nigeria approved a restructuring where MTN Group acquired a 60% stake in its fintech subsidiaries, MoMo PSB and YDFS, for ₦95.5 billion, alongside a ₦152.06 billion capital injection. This deal transferred majority control to MTN Group and established a new Fintech Holding Company under Central Bank of Nigeria regulation. The move limits MTN Nigeria's exposure to fintech losses, strengthens its financial position, and allows it to focus on its core telecom business. Meanwhile, MTN Group gains operational control to scale fintech services across Africa, leveraging Nigeria's booming digital payments market and benefiting from clearer regulatory oversight. Despite intense competition and capital demands, this strategic shift aims to accelerate growth and improve profitability for both entities.