Telecom
MTN Nigeria takes full control of MoMo bank for $4.6m
MTN Nigeria recently announced that it has successfully acquired a 7.17% minority interest in Mobile Money Payment Service Bank (MoMo PSB), which was formerly controlled by Acxani Capital, for a total investment of roughly $4.36 million.
Karl Toriola
The telecom company confirmed the acquisition on the Nigerian Stock Exchange, noting that after the sale, MoMo PSB is now entirely owned by MTN Nigeria.
“Management believes this transaction will simplify and strengthen MoMo PSB operations, which is crucial in achieving its growth ambitions,” read the notice to shareholders.
The telco received final clearance for its banking licence in 2022, allowing it to begin operations.
MTN Nigeria’s Payment Services Bank provides a broader range of mobile financial services than traditional person-to-person mobile money transfers, including lending and bill payments.
Wholly owning the MoMo PSB in MTN Group’s most profitable market is expected to strengthen the group’s operations.
Nigeria remains MTN’s largest market and accounts for a large portion of the group’s income.