By Ayomide Otitoju
MTN Nigeria, the country’s largest telecommunications provider, has completed the acquisition of the remaining 7.17% minority interest in MoMo Payment Service Bank (PSB) for N6.95 billion, further solidifying its position in Nigeria’s financial services sector.
The transaction was detailed in MTN Nigeria’s unaudited financial results for the nine months ending September 30, 2024. The buyout, initially agreed upon in May with MoMo PSB’s minority shareholders, advances MTN Nigeria’s strategy to achieve near-total ownership of the digital banking subsidiary.
MTN Nigeria aims to leverage MoMo PSB’s infrastructure to enhance customer convenience and tap into Nigeria’s expanding digital finance market. The buyout supports MTN’s broader mission to increase financial inclusion in Nigeria, with MoMo PSB already providing a suite of mobile banking services.
“In May 2024, non-controlling interest holders in MoMo PSB proposed selling their 20% stake, which had diluted to a 7.17% minority interest, to MTN Nigeria. MTN Nigeria accepted and paid N6.95 billion as the agreed purchase consideration,” MTN disclosed.
The acquisition was processed as an equity transaction, resulting in a N12.97 billion adjustment to MTN Nigeria’s retained earnings, in line with International Financial Reporting Standards 10 (IFRS 10). This adjustment reflects the gap between MoMo PSB’s minority interest valuation and the actual purchase amount.
MoMo PSB, launched on May 19, 2022, with final regulatory approval from the Central Bank of Nigeria, has since established itself as a key player in the financial services space. The subsidiary’s establishment followed a successful pilot coinciding with MTN’s GSM anniversary, setting the stage for a broader expansion into mobile banking.
