In a significant move, MTN Nigeria has bought out the minority shareholder in MoMo Payment Service Bank (MoMo PSB) for N6.95 billion, according to a corporate disclosure on the Nigerian Exchange (NGX) website.

MTN Nigeria successfully acquired the 7.17% stake in MoMo PSB held by Acxani Capital, making MoMo PSB a wholly-owned subsidiary of the telecom giant. MoMo PSB, MTN Nigeria’s fintech arm, was licensed by the Central Bank of Nigeria (CBN) in 2022.

Initially, MTN Nigeria held an 80% stake in MoMo PSB, with Acxani Capital owning 20%. However, Acxani’s stake was diluted to 7.17% by May 2024. Following negotiations, MTN Nigeria and Acxani Capital reached a N6.95 billion agreement for the remaining shares.

The transaction impacted MTN’s financials, leading to a N12.97 billion reduction in “Other Reserves.” The total cost of the acquisition was N16.35 billion, which included the N6.95 billion paid to Acxani and N9.4 billion invested in MoMo. Additionally, MTN acquired more assets worth N3.38 billion from Acxani Capital.

This acquisition solidifies MTN Nigeria’s position in the fintech space, aiming to leverage MoMo PSB’s potential fully.