MTN Nigeria Communications Plc announced that it intends to sell its Y’ello Digital Financial Services (YDF) and a 60 % stake in MoMo Payment Service Bank (MoMo PSB) to MTN Group. The two subsidiaries account for the bulk of MTN Nigeria’s fintech revenue.
The transaction, valued at N152.06 billion, was disclosed in a shareholder FAQ released ahead of the company’s Annual General Meeting scheduled for 30 April 2026. If approved, MTN Nigeria will pursue the necessary regulatory and legal steps, targeting completion on or before 31 December 2026, subject to required approvals.
Under the proposed structure, MTN Group, through MTN Group FinTech B.V., will acquire majority ownership of the fintech entities, while MTN Nigeria will retain a 40 % interest. The deal will be executed via a combination of fresh capital injection into the subsidiaries and a secondary purchase of shares directly from MTN Nigeria. Following the transaction, both parties will place their holdings in a new holding company to be registered with the Central Bank of Nigeria, creating a 60/40 ownership split between MTN Group FinTech and MTN Nigeria.
KPMG provided an independent fairness opinion, confirming the agreed valuation of N95.5 billion as fair and reasonable. The valuation reflects a 2.1‑times premium to the subsidiaries’ carrying value as of December 2025.
MTN Nigeria indicated that it has fully funded the fintech subsidiaries to date, but further growth will require substantial additional investment. The sale is designed to enable MTN Group to inject the required capital, accelerate expansion, and capture opportunities in Nigeria’s digital financial services market. At the same time, MTN Nigeria will be able to concentrate its capital on strengthening its balance sheet, maintaining network leadership, improving service quality, and driving growth in its core connectivity business.
Shareholders’ holdings in the listed telecom operator will remain unchanged if the transaction is approved. Investors will continue to benefit from exposure to the fintech business through MTN Nigeria’s retained 40 % stake. The company noted that the fintech units are presently loss‑making and that separating them from MTN Nigeria’s consolidated results is expected to enhance overall financial performance. Reduced funding obligations to the fintech subsidiaries should improve free cash flow and support stable dividend payments over the next three to five years.
The proposed sale forms part of MTN Group’s Ambition 2030 strategy, which aims to position the group as Africa’s leading connectivity, fintech, and digital infrastructure platform. The deal will be put to a vote at the AGM, with approval required for the restructuring to proceed.
