Nigeria:  MTN Nigeria Acquires Remaining Stake in MoMo PSB

MTN Nigeria, the country’s largest telecommunications company, has fortified its position in the financial services sector by acquiring the remaining 7.17% minority interest in MoMo Payment Service Bank (MoMo PSB) for N6.95 billion. This strategic move was revealed in MTN Nigeria’s unaudited financial statements for the nine months ending September 30, 2024.

In May 2024, minority stakeholders in MoMo PSB proposed the sale of their diluted 20% stake, now at 7.17%, to MTN Nigeria. The proposal was accepted, leading to a payment of N6.95 billion for the acquisition. This equity transaction resulted in an adjustment of N12.97 billion to MTN Nigeria’s retained earnings.

This acquisition is part of MTN Nigeria’s broader strategy to expand its footprint in Nigeria’s financial services industry through MoMo PSB, which offers a suite of digital banking services aimed at enhancing financial inclusion. By gaining full control, MTN Nigeria intends to leverage MoMo PSB’s robust mobile banking infrastructure to provide greater convenience for its customers and tap into the burgeoning digital finance market.

Senior Manager of MTN Foundation Robert Kuzoe,, highlighted, “We’re not just providing money; we’re also imparting essential principles for running a business. From basic bookkeeping to using mobile phones for marketing and transactions, the goal is to empower participants to use their profits wisely and reinvest in their businesses rather than just spending.”

MoMo PSB, which officially commenced operations on May 19, 2022, following Central Bank of Nigeria’s final approval in April 2022, aims to solidify MTN’s role in driving financial innovation and inclusion in Nigeria. The service’s launch was preceded by a successful pilot program on May 16, 2022, marking the anniversary of MTN’s GSM operations.