MTN Nigeria Communications Plc is set to sell Y’ello Digital Financial Services (YDF) and a 60% stake in MoMo Payment Service Bank to its parent company, MTN Group, in a transaction valued at N152.06 billion.
The two subsidiaries are the main engines behind MTN Nigeria’s fintech revenue, and the proposed sale was revealed in a FAQ document sent to shareholders ahead of the company’s Annual General Meeting scheduled for April 30, 2026.
MTN Group said it will make its move through MTN Group Fintech B.V., acquiring majority ownership of both fintech units while MTN Nigeria holds onto 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.
The company also 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 deal, both parties will move their respective stakes into a newly registered holding company that will be incorporated under the Central Bank of Nigeria, formalising the 60/40 ownership split.
Accounting firm KPMG provided an independent fairness opinion on the agreed valuation of N95.5 billion, declaring it fair and reasonable. MTN Nigeria noted that this figure represents a 2.1x premium over the fintech subsidiaries’ carrying value as of December 2025.
Shareholders will vote on the transaction at the AGM, and if approved, the company says it will move forward with all necessary regulatory and legal processes, targeting completion on or before December 31, 2026. The deal forms part of MTN Group’s broader Ambition 2030 strategy to establish itself as Africa’s leading connectivity, fintech, and digital infrastructure platform.
MTN Nigeria acknowledged it has been the sole funder of the fintech subsidiaries so far, but said their continued growth demands far more capital than it can comfortably sustain alone. Bringing MTN Group in as majority owner would unlock additional funding to accelerate expansion and go after opportunities in Nigeria’s fast growing digital financial services sector.
The company also pointed to the financial upside for MTN Nigeria itself. The restructuring is expected to sharpen the company’s focus on its core connectivity business, strengthen its balance sheet and free up cash flow. With the fintech units currently running at a loss, removing them from MTN Nigeria’s consolidated results could lift the company’s overall financial performance. Management added that reduced funding obligations to those units may support better or more stable dividend payments over the next three to five years.
Existing shareholders need not worry about their positions in the listed telecom company as their holdings will remain unchanged. They will still have exposure to the fintech business through MTN Nigeria’s retained 40% interest.
