MTN Nigeria Communications Plc plans a major fintech restructuring and is preparing for its Annual General Meeting on April 30, 2026.
The company will sell a 60% stake in MoMo Payment Service Bank and Y’ello Digital Financial Services for ₦152.06 billion.
MTN Nigeria Major Stake Sale
MTN Group will acquire majority control through MTN Group Fintech B.V., while MTN Nigeria will retain a 40% stake after completion.
The proposal will be presented to shareholders for approval at the AGM.
The move aligns with MTN Group’s “Ambition 2030” strategy, which focuses on expanding digital and fintech services across Africa.
The transaction combines a fresh capital injection with a secondary share purchase from MTN Nigeria.
It will also create a new holding structure under Central Bank of Nigeria regulation, with ownership split at 60% for MTN Group Fintech and 40% for MTN Nigeria.
Valuation And Structure
KPMG valued the deal at ₦95.5 billion and confirmed it as fair and reasonable.
The valuation reflects a 2.1 times premium over December 2025 carrying values.
MTN Nigeria has fully funded both fintech subsidiaries since launch.
However, management says future growth now requires significantly higher capital investment.
MTN Group will therefore inject additional funding to accelerate fintech expansion in Nigeria.
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At the same time, MTN Nigeria will focus more on strengthening its telecom operations and financial position.
Financial Outlook And Growth
Shareholders will not experience any dilution in their MTN Nigeria holdings.
Investors will still benefit indirectly from fintech through the retained 40% stake.
Both MoMo Payment Service Bank and Y’ello Digital Financial Services are currently loss-making.
Their removal from consolidated results is expected to improve MTN Nigeria’s financial performance.
Reduced funding pressure may also strengthen cash flow and support dividends over the medium term.
MTN Nigeria targets completion of the transaction by December 31, 2026, subject to regulatory approval.
Fintech revenue rose by 79.7% in 2025, driven by higher interest income and service expansion.
Active wallets reached 3.7 million, supported by rural penetration and improved app performance.
Customer deposits rose by 156.1%, boosting float income significantly.
MTN is reshaping its fintech structure to balance growth, investment, and long-term sustainability.
