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MTN Acquires Minority Stake In MoMo PSB For N6.95bn

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MTN Nigeria has acquired the minority shares in MoMo Payment Service Bank (MoMo PSB) for N6.95 billion.

This was disclosed in a statement the company filed with NGX on Monday.

According to the statement, MTN Nigeria has completed the acquisition of the 7.17% stake in MoMo PSB held by Acxani Capital; making MoMo PSB a solely owned subsidiary of MTN Nigeria.

The CBN granted a licence to MTN Nigeria’s fintech solution, MoMo PSB, in 2022.

Acxani Capital owned 20% of the company, while MTN Nigeria owned 80% of it.

In May 2024, Acxani suggested selling their 20% ownership in MoMo; however, the stake was reduced to 7.17%.

Acxani Capital and MTN Nigeria reached a N6.95 billion deal for the 7.17% share. The purchase led to a N12.97 billion decline in the MTN’s “Other Reserves”, as the group spent N16.35 billion on the acquisition of the minority stake, while it acquired assets worth N3.38 billion from Acxani Capital.

The N6.95 billion paid to Acxani and the N9.4 billion invested in MoMo were included in the N16.35 billion spent as purchase consideration.

According to reports at the end of the second quarter of 2024, MoMo PSB’s active wallet reached 5.5 million, up 701,000 from the previous quarter.

Munir Ja’afaru, a prince of the Zazzau Emirate and a former director of the now-defunct NITEL, is the owner of Acxani Capital.

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