MTN Nigeria has confirmed a major restructuring of its fintech operations, with its parent company, MTN Group, set to acquire majority stakes in its mobile money businesses in a deal valued at ₦95.5 billion.
MTN Group takes control of fintech units
The update, disclosed ahead of the company’s April 30, 2026 Annual General Meeting, shows that MTN Group will acquire 60 per cent stakes in MoMo Payment Service Bank and Y’ello Digital Financial Services.
The transaction effectively shifts control of both entities to the group level, while MTN Nigeria retains a 40 per cent minority interest.
This marks a strategic pivot in how the telecom giant manages its fast-growing but capital-intensive fintech segment.
New structure to centralise operations
Under the new arrangement, both fintech businesses will be housed within a newly created holding entity known as Fintech HoldCo.
The structure will be owned 60 per cent by MTN Group and 40 per cent by MTN Nigeria, allowing the parent company to consolidate fintech operations across multiple markets.
The move is designed to streamline decision-making and align operations under a unified continental strategy.
Losses drive strategic shift
The restructuring follows mounting financial pressure from MTN Nigeria’s fintech investments, which recorded a ₦62.56 billion impairment in 2025.
The impairment reflects ongoing losses within the fintech units, despite years of expansion and market penetration.
By transferring majority ownership, MTN Nigeria reduces its financial exposure while freeing up capital to strengthen its core telecommunications business.
Part of wider continental plan
The move aligns with MTN Group’s long-term ambition to build a unified fintech platform across Africa.
The company has been gradually restructuring similar operations in other markets, including Ghana and Uganda, as part of a broader consolidation strategy.
Nigeria’s scale and complexity made it a key piece in this transition, with the latest development marking a significant milestone.
Future growth and possible listing
The restructuring also positions MTN Group for future partnerships and potential capital market opportunities.
With fintech operations now centralised, the group could explore expansion strategies, including collaborations with global payment players and a possible public listing in the future.
The development signals a shift from fragmented operations to a more coordinated fintech ecosystem across the continent.