MTN Nigeria Communications Plc is preparing a major shift in its fintech strategy. The company plans to sell a controlling stake in its mobile money business.
The proposed deal covers MoMo Payment Service Bank and Y’ello Digital Financial Services. Both units sit at the heart of MTN’s financial services push.
According to the company, the transaction is valued at N152.06 billion. It will be presented to shareholders at the upcoming Annual General Meeting.
The buyer is MTN Group, which aims to deepen its fintech footprint across the continent. Nigeria, therefore, remains central to that ambition.
Why the MTN Nigeria fintech deal matters
The MTN Nigeria fintech deal is designed to unlock growth. At the same time, it reduces pressure on the telecom company’s balance sheet.
Under the plan, MTN Group will take a 60% stake through MTN Group Fintech B.V. Meanwhile, MTN Nigeria will retain 40%.
The company explained that the transaction combines new funding and share sales.
“MTN Group (via MTN Group Fintech B.V.) will invest N152.06 billion for a 60% stake in the Fintech Subsidiaries. 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%,” it stated.
Following completion, both parties will move their stakes into a new holding company. This entity will be registered with the Central Bank of Nigeria.
Importantly, MTN Nigeria has funded these fintech units so far. However, their expansion now requires larger capital commitments.
By bringing in MTN Group, the company expects stronger financial backing. This should support growth in Nigeria’s digital payments space.
KPMG also reviewed the valuation. The firm described the N95.5 billion figure as fair and reasonable. It reflects a 2.1 times premium on the units’ carrying value.
What changes for investors and the business
The MTN Nigeria fintech deal will not dilute shareholder holdings. Investors will still hold the same shares in the listed company.
However, they will retain indirect exposure to fintech through MTN Nigeria’s 40% stake. This keeps them linked to future growth in the segment.
The company also noted that the fintech subsidiaries are currently loss-making. Separating them could improve overall financial performance.
As a result, MTN Nigeria expects stronger cash flow. It also anticipates more stable or improved dividend payments over time.
At the same time, the restructuring allows the company to focus on its core business. It plans to strengthen its network, improve service quality, and expand connectivity.
The transaction aligns with MTN Group’s Ambition 2030 strategy. That plan aims to position the group as a leader in connectivity, fintech, and digital infrastructure.
If shareholders approve the deal, the company will begin regulatory processes. Completion is targeted before December 31, 2026.
For now, the move signals a clear shift. MTN Nigeria is doubling down on structure, funding, and long-term growth.
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