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Nigeria’s biggest telco, MTN, has acquired the remaining 7.17 per cent minority interest in MoMo Payment Service Bank for N6.95bn, in a move to strengthen its position in the financial services sector.
The acquisition was disclosed in MTN Nigeria’s unaudited financial statements for the nine months ended Sept. 30, 2024.
In May, MTN reached an agreement with MoMo PSB’s minority shareholders to purchase their stake, bringing MTN’s ownership of the bank closer to full control.
This acquisition aligns with MTN Nigeria’s broader strategy to deepen its foothold in Nigeria’s financial services sector through MoMo PSB, which offers a range of digital banking services aimed at increasing financial inclusion.
With the buyout, MTN Nigeria seeks to leverage MoMo PSB’s mobile banking infrastructure to drive greater convenience for customers while enhancing revenue streams from the growing digital finance market.
“In May 2024, the non-controlling interest holders in MoMo Payment Service Bank (MoMo PSB) proposed the sale of their 20 per cent stake, which had been diluted to a 7.17 per cent minority interest, to MTN Nigeria Communications Plc (MTN Nigeria). MTN Nigeria accepted this proposal and paid N6.95bn as the agreed purchase consideration.”
The telcos noted that the acquisition was registered as an equity transaction, resulting in an adjustment of N12.97bn to MTN Nigeria’s retained earnings.
This adjustment represents the difference between the valuation of the non-controlling interest in MoMo PSB and the actual amount paid by MTN Nigeria, in accordance with International Financial Reporting Standards 10, the operator stated.
MoMo officially began operations in Nigeria on May 19, 2022, after receiving final approval from the Central Bank of Nigeria in April 2022.
The launch followed a successful pilot program initiated on May 16, 2022, which coincided with the anniversary of MTN’s GSM operations.
