Bank

2024

April

<a href="http://www.mtn.ng/" target="_blank" rel="noreferrer noopener">MTN Nigeria Communications</a> has completed the acquisition of its fintech subsidiary, MoMo Payment Service Bank (MoMo PSB). Nigeria’s biggest telecommunications company acquired the remaining 7.17 per cent in MoMo PSB for N6.95bn, again strengthening MTN’s position in the financial service sector.&nbsp; 
The final acquisition was disclosed in MTN Nigeria’s financial statements for the first nine months of 2024. For MoMo PSB’s acquisition, MTN had reached an agreement with the fintech’s stakeholders in May. This marked the beginning of the acquisition.&nbsp; 
According to the telecoms giant, the fintech’s acquisition aligns with its broader strategy to deepen its foothold in Nigeria’s financial services sector. It also offers a range of digital banking services aimed at increasing financial inclusion and enhancing revenue streams from the growing digital finance market. 
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 <img loading="lazy" decoding="async" width="748" height="491" src="https://technext24.com/wp-content/uploads/2021/11/MTN-MOmo.png" alt="Exclusive: MTN MoMo account users share experience with fraudsters" class="wp-image-128820" srcset="https://technext24.com/wp-content/uploads/2021/11/MTN-MOmo.png 748w, https://technext24.com/wp-content/uploads/2021/11/MTN-MOmo-300x197.png 300w, https://technext24.com/wp-content/uploads/2021/11/MTN-MOmo-640x420.png 640w" sizes="(max-width: 748px) 100vw, 748px">
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“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 company said in a statement.&nbsp; 
The total cost of the acquisition amounted to N16.35 billion. This included the N6.95 billion paid directly to Acxani Capital and an additional N9.4 billion invested in MoMo. As a result, MTN Nigeria’s retained earnings declined by N12.97 billion. The transaction also involved the acquisition of assets worth N3.38 billion from Acxani Capital. 
With the buyout, MTN Nigeria seeks to leverage MoMo PSB’s mobile banking infrastructure to drive greater customer convenience. 
<h4 id="momo-psbs-growth-in-2024" class="wp-block-heading">MoMo PSB’s Growth in 2024</h4> 
MTN Nigeria previously held an 80 per cent stake in MoMo PSB, while Acxani Capital owned 20 per cent. Acxani Capital proposed selling their 20 per cent stake in MoMo in May 2024, but their stake was ultimately diluted to 7.17 per cent. MTN Nigeria spent N16.35 billion on the minority stake’s acquisition while it acquired assets worth N3.38 billion from Axani Capital. 
The fintech company’s growth in 2024 has since topped the bar, justifying the interest from MTN Nigeria. In February 2024, MoMo announced a multi-market partnership to launch a prepaid virtual card, allowing customers to access more than 100 million acceptance points worldwide. 
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 <img loading="lazy" decoding="async" width="768" height="768" src="https://technext24.com/wp-content/uploads/2022/04/MTN-License.webp" alt="" class="wp-image-140704" style="width: 100%;height:auto" srcset="https://technext24.com/wp-content/uploads/2022/04/MTN-License.webp 768w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-300x300.webp 300w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-150x150.webp 150w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-80x80.webp 80w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-110x110.webp 110w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-380x380.webp 380w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-550x550.webp 550w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-160x160.webp 160w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-220x220.webp 220w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-760x760.webp 760w, https://technext24.com/wp-content/uploads/2022/04/MTN-License-600x600.webp 600w" sizes="(max-width: 768px) 100vw, 768px">
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In the first half of 2024, MoMo PSB recorded a revenue of N48.6 billion. This resulted in an 11 per cent increase from the N43.6 billion revenue recorded in the first half of 2023. The growth was driven mainly by Xtratime, the airtime lending service. 
At the end of the second quarter of 2024, it was reported that its active wallet hit 5.5 million, reflecting an increase of 701,000 from the first quarter. 
Also, the number of fintech company agents increased by about 239,000 to 498,000 within the half-year. Transaction volume increased by 33.4 per cent year-on-year within the same period. 
In April 2024, MTN added 25 new wallet corridors to the fintech application and expanded its services to 10 more countries to facilitate international remittances.&nbsp; The expansion and launch would enable MoMo users to send money to 24 African countries and interact with over 200 million wallets.&nbsp; 
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 <img loading="lazy" decoding="async" width="624" height="390" src="https://technext24.com/wp-content/uploads/2024/08/MTN-Ghana-MoMo.jpeg" alt="MTN Ghana MoMo" class="wp-image-234330">
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Meanwhile, the cash held for the fintech company’s customers declined by 72 per cent to N2.15 billion in H1 of 2024. As of the same period, the company had a liability of about N26.6 billion to MTN Nigeria. It also paid N11.2 billion to the group during the half-year. 
Acxani Capital is owned by Munir Ja’afaru, a former director in the defunct NITEL and a prince in the Zazzau Emirate. He served as the former district head of Basawa in Zaria, and he once served as the chairman of the National Export Processing Zones Authority (NEPZA) until 2004. 
<a href="https://technext24.com/2024/04/16/mtns-momo-expands-across-10-countries/" target="_blank" rel="noreferrer noopener">Also Read: MTN’s MoMo expands across 10 countries</a>.
The post <a href="https://technext24.com/2024/11/06/mtn-nigeria-completes-momo-acquisition/">MTN Nigeria completes MoMo PSB’s acquisition in a N16.35-billion deal</a> first appeared on <a href="https://technext24.com">Technext</a>.

MTN Nigeria completes MoMo PSB’s acquisition in a N16.35-billion deal

Technext.ng

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