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MTN Nigeria has successfully acquired the remaining 7.17% minority stake in its mobile money subsidiary, MoMo Payment Service Bank (MoMo PSB), from Acxani Capital Limited.
The leading telecommunications provider in Nigeria made a public announcement on the Nigerian Stock Exchange (NGX) website.
This development marks a significant milestone for the telecommunications giant as it solidifies its control over the rapidly growing fintech platform.
With the completion of this transaction, MTN Nigeria now holds 100% ownership of MoMo PSB, empowering the company to have full autonomy in charting the future direction of its mobile money operations. This strategic move underscores MTN’s commitment to expanding its financial services portfolio and deepening its penetration into the Nigerian market.
Prior to the acquisition, MTN Nigeria’s ownership in MoMo PSB stood at 80%, with Acxani Capital holding the remaining 20% share. In May 2024, Acxani Capital expressed its intention to sell off its entire 20% stake, which was subsequently reduced to 7.17%. The agreed purchase price between MTN Nigeria and Acxani Capital for the 7.17% stake was set at ₦6.95 billion. This acquisition has led to a reduction in MTN Nigeria’s “Other Reserves” by ₦12.97 billion.
According to reports, the comprehensive cost incurred by MTN Nigeria for this acquisition amounted to ₦16.35 billion. This figure includes the ₦6.95 billion paid directly to Acxani Capital for the stake and an additional investment of ₦9.4 billion in MoMo PSB. The deal also encompassed the acquisition of assets from Acxani Capital, which were valued at ₦3.38 billion.
MoMo PSB has experienced substantial growth since its inception, becoming a key player in the country’s financial inclusion landscape. By gaining complete ownership, MTN aims to accelerate MoMo PSB’s development, introduce innovative financial products and services, and expand its customer base.
MTN’s MoMo PSB is booming, with a 73.9% increase in active users and 11% revenue growth. The number of active wallets surged by 73.9% with 701,000 new wallets recorded compared to the first quarter to hit 5.5 million by the end of the second quarter of 2024.
Furthermore, MoMo PSB’s revenue grew by 11%, reaching ₦48.6 billion for the first half of 2024. This strong performance is attributed to a 33.4% year-on-year increase in transaction volume, facilitated by the substantial expansion of the agent network. MoMo PSB now boasts 239,000 agents, reflecting a growth of 498,000 agents.
The acquisition is expected to enhance MTN Nigeria’s overall financial performance and contribute to its long-term growth prospects. As the sole owner of MoMo PSB, the company will have greater flexibility in making strategic decisions and capitalizing on emerging opportunities in the fintech sector. This acquisition is seen as a strategic investment by MTN Nigeria to strengthen its position in the competitive mobile money market.
