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MTN Nigeria Communications has finalized the acquisition of its fintech subsidiary, MoMo Payment Service Bank (MoMo PSB). The deal makes it a wholly-owned MTN entity. According to a recent corporate filing on the Nigerian Exchange (NGX), MTN completed the purchase of the remaining 7.17% stake in MoMo PSB for N6.95 billion, bringing the total acquisition cost to N16.35 billion. With this transaction, MTN Nigeria solidifies its presence in the financial services sector. The acquisition underscores its commitment to expanding fintech solutions across the country.
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MTN held an 80% stake in MoMo PSB before this acquisition, while Acxani Capital owned the remaining 20%. Acxani Capital is owned by Munir Ja’afaru, a former director at the now-defunct NITEL. Ja’afaru is a prince of the Zazzau Emirate, Kaduna state. Earlier in May 2024, Acxani proposed selling its stake, which was reduced to 7.17% before MTN completed the acquisition. The transaction resulted in a N12.97 billion deduction from MTN Nigeria’s “Other Reserves.” It included assets worth N3.38 billion acquired from Acxani Capital.
MoMo PSB shows impressive growth
MoMo PSB has shown impressive growth in Nigeria’s fintech space. Active wallets was over 5.5 million by the end of Q2 2024, an increase of 701,000 from Q1. The fintech company also reported a strong revenue of N48.6 billion in the first half of 2024. This represents an 11% rise compared to N43.6 billion during the same period in 2023. This growth was largely fueled by MoMo PSB’s airtime lending service, Xtratime, which continues to attract a significant customer base.
Nigeria’s leading telecom provider, MTN’s full acquisition of MoMo PSB highlights the telecom giant’s strategy to diversify its offerings. The move underscores its plan to meet the increasing demand for mobile financial services. With this acquisition, MTN Nigeria is well-positioned to enhance financial inclusion and innovation across the region.
