Lagos, Nigeria — MTN Nigeria Communications Plc has announced plans to sell a 60% stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services, to MTN Group in a N152.06 billion ($94.4 million) transaction.
Okay News reports that the deal, disclosed in an FAQ issued to shareholders ahead of the company’s Annual General Meeting on April 30, 2026, forms part of MTN Group‘s Ambition 2030 strategy to become Africa‘s leading connectivity, fintech, and digital infrastructure platform business. Under the arrangement, MTN Group, through MTN Group Fintech B.V., will acquire majority ownership, while MTN Nigeria retains a 40% stake.
“MTN Group (via MTN Group Fintech B.V.) will invest N152.06 billion for a 60% stake in the fintech subsidiaries,” the company stated. “This will be executed through a combination of primary injection of capital into the fintech subsidiaries and a secondary acquisition of shares directly from MTN Nigeria, while MTN Nigeria will retain 40%.” Following the transaction, both parties will transfer their stakes into a new holding company to be registered with the Central Bank of Nigeria, creating a shared ownership structure of 60% for MTN Group Fintech and 40% for MTN Nigeria.
KPMG issued an independent fairness opinion on the agreed valuation of N95.5 billion, describing it as fair and reasonable. The valuation represents a 2.1x premium to the fintech companies’ carrying value as of December 2025. MTN Nigeria said it has fully funded the fintech subsidiaries to date, but their continued growth requires substantial financial investment. The transaction would enable MTN Group to provide additional funding needed to accelerate expansion in Nigeria‘s digital financial services market.
The restructuring would allow MTN Nigeria to focus capital allocation on strengthening its balance sheet, protecting network leadership, and sustaining shareholder returns. The fintech subsidiaries are currently loss-making, and their separation from MTN Nigeria‘s results is expected to improve the company’s overall financial performance. If approved, completion is targeted on or before December 31, 2026, subject to regulatory approvals.
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