*Cedes majority stake to group
Shareholders of MTN Nigeria have approved a major restructuring of the company’s digital financial services arm, clearing the way for a ₦152.06 billion transaction that will see the telecom giant relinquish majority control of its fintech subsidiaries.
The approval, granted at the company’s Annual General Meeting on April 30, 2026, endorses Resolution 9, which transfers a 60 per cent stake in MoMo Payment Service Bank Limited and Y’ello Digital Financial Services Limited to MTN Group Fintech B.V.
Under the arrangement, the group’s fintech arm will inject fresh capital into the businesses while also acquiring shares from MTN Nigeria through a hybrid structure combining primary and secondary investments.
Following the transaction, both parties will consolidate their interests into a newly created holding company to be registered with the Central Bank of Nigeria, a move designed to streamline oversight and position the fintech operations for future investment.
The restructuring marks a significant shift in MTN Nigeria’s strategy, effectively transferring a larger share of the financial and operational responsibility for the fintech business to the parent company, while allowing the local entity to refocus on its core telecommunications operations.
Industry observers say the move aligns with the broader “Ambition 2030” roadmap of the MTN Group, which prioritises scaling digital and financial services across its markets. The company acknowledged that its fintech subsidiaries are currently loss-making, reflecting the capital-intensive nature of building digital payment platforms.
By reducing its direct exposure, MTN Nigeria is expected to free up resources to strengthen its connectivity infrastructure, while the fintech arm gains the financial backing required to accelerate expansion.
The planned holding company structure is also expected to enhance investment flexibility, enabling the business to attract strategic partners and scale operations in areas such as rural penetration, merchant acquisition and digital payments.
