MTN strengthens fintech foothold in Nigeria with MoMo PSB buyout

Oluwatosin Racheal Alabi -

Key Points

  • MTN acquired the remaining 7.17% stake in MoMo PSB for 6.95 billion($4.16 million), consolidating its control over the digital banking entity.
  • The transaction aligns with MTN’s strategy to deepen its role in Nigeria’s financial services sector.
  • Following the acquisition, MTN adjusted retained earnings by ₦12.97 billion($7.77 million) to comply with International Financial Reporting Standards.

Africa’s largest telecom operator, MTN, led by Zimbabwean business executive Ralph Mupita, has reinforced its presence in Nigeria's financial services sector by acquiring the remaining 7.17-percent minority stake in MoMo Payment Service Bank (MoMo PSB) for N6.95 billion ($4.16 million). With this buyout, MTN now holds near-total ownership of MoMo PSB, positioning the company to expand its digital financial services in Nigeria's thriving fintech landscape.

Expanding digital finance services

The acquisition aligns with MTN’s strategic vision of building a comprehensive digital banking presence across Nigeria. Established in May 2022 with Central Bank of Nigeria approval, MoMo PSB aims to deliver digital financial services to underserved communities across the nation. With full ownership, MTN is now set to accelerate MoMo PSB’s growth, expanding its service offerings to include digital wallets, mobile money transfers, and payment solutions, thereby bridging critical banking access gaps in both rural and urban areas.

By increasing its stake in MoMo PSB, MTN reinforces its commitment to promoting financial inclusion in Nigeria. As mobile and digital finance become essential in the country, MTN’s expanded role will allow it to meet the rising demand for digital financial solutions across broader demographics. This buyout strengthens MTN’s ability to reach and serve the millions of Nigerians who lack access to traditional banking services, supporting Nigeria’s broader fintech growth.

MTN reported a N12.97-billion ($7.77 million) adjustment to retained earnings following the MoMo PSB buyout, consistent with International Financial Reporting Standards (IFRS). This adjustment reflects the difference between MoMo PSB’s fair value and the N6.95-billion ($4.16 million) paid for the minority stake, signaling MTN’s commitment to transparent and strategic financial management as it builds its fintech capabilities.

Scaling financial inclusion efforts

With full ownership of MoMo PSB, MTN can now leverage its telecommunications infrastructure to promote mobile banking, payments, and digital remittance services, particularly in Nigeria's underserved areas. This expanded control places MTN in a prime position to scale financial inclusion, a vital area in the Nigerian fintech ecosystem.

Billionaires Africa previously reported on MTN Nigeria’s strategic buyout of the remaining MoMo PSB shares, alongside plans to establish West Africa’s largest data center to support its rapid revenue growth. This acquisition of MoMo PSB marks a key strategic move, equipping MTN to capitalize on the growing demand for accessible digital banking services across Nigeria.