Shareholders Approve Structural Separation of Fintech Units
MTN Nigeria shareholders have voted overwhelmingly to approve the sale of majority stakes in the company's fintech subsidiaries, MoMo Payment Service Bank (PSB) and Yello Digital Financial Services (YDFS). The decision was made during a meeting held on April 30, 2026, where Resolution 9 was passed, authorizing a Structural Separation Transaction that transfers these fintech arms under a new financial holding company.
The move allows MTN Group to invest approximately ₦152.06 billion to acquire a 60% stake in the fintech businesses. As a result, MTN Nigeria's ownership will be diluted to 40%, relieving the company of the financial burden associated with these loss-making ventures.
Focus on Core Telecom Network
By shedding the fintech load, MTN Nigeria can now concentrate on its core telecom operations, including network expansion and service improvement. The separation also ensures that MTN Nigeria falls solely under the regulatory purview of the Nigerian Communications Commission (NCC), eliminating any regulatory overlap or ambiguity.
Management argued that this split is necessary to protect the company's network leadership and ensure strong shareholder returns. The company can now redeploy capital to accelerate core telecom activities.
Deal Details and Timeline
Under the finalized terms, MTN Group will provide the crucial funding to take over the majority stake. The capital injection and secondary share acquisition will officially dilute MTN Nigeria's shareholding to 40%. The company targets full completion of the deal on or before December 31, 2026.
Interested directors and associates were barred from participating in the vote to ensure transparency, in compliance with Rule 20.8 (c) (8) of the Nigerian Exchange Limited.
Background on Fintech Operations
MTN Nigeria had previously borne 100% of the financial and operational risks for MoMo PSB and YDFS. However, the cost of expanding digital payments, driving remittances, and building agent networks across the country proved incredibly steep. The company admitted that the subsidiaries are currently running at a loss, which is typical at this stage of their growth lifecycle.
The approved solution unlocks a massive capital influx, easing the financial burden on MTN Nigeria and allowing the fintech businesses to continue expanding with substantial financial investment from the group.
