At its Annual General Meeting (AGM) held on April 30, 2026, MTN Nigeria shareholders officially approved a massive structural shift in the company’s digital financial services operations.
The telco successfully passed Resolution 9, a general mandate that cedes majority control of its fintech subsidiaries – MoMo Payment Service Bank Limited (MoMo PSB) and Y’ello Digital Financial Services Limited (YDFS) – to its parent company. This decisive vote marks a pivotal moment in the Nigerian tech and telecom ecosystem as the dominant connectivity provider restructures its asset portfolio.
The mechanics of the newly approved deal are highly strategic. According to the board, MTN Group Fintech B.V. will inject approximately ₦152.06 billion to secure a 60% stake in the fintech businesses. This will be executed through a hybrid model involving a primary injection of capital directly into the subsidiaries and a secondary acquisition of shares from MTN Nigeria. Following this transaction, both parties will transfer their respective stakes into a newly minted Holding Company registered directly with the Central Bank of Nigeria (CBN).
For tech ecosystem observers, this is a classic growth play aligned with MTN Group’s broader “Ambition 2030” strategy. Building a fintech footprint requires massive capital burn, and management frankly noted that the fintech subsidiaries are currently loss-making – a standard reality for the growth lifecycle of such digital platforms. Up until now, MTN Nigeria has fully owned and funded these operations, but continuing their explosive growth trajectory requires substantial financial investment that the telco prefers not to shoulder entirely.
By shifting 60% of this financial burden and operational risk to the Group, MTN Nigeria frees up capital to defend its core connectivity platform. Meanwhile, MoMo gains a dedicated strategic focus to aggressively pursue rural penetration, merchant acquisition, and digital payments.
The creation of the Nigeria Fintech HoldCo also provides critical investment flexibility, serving as a dedicated vehicle to attract strategic tech investors and simplify future capital calls.
