MTN Nigeria, Nigeria’s largest telecoms company run by business chief Karl Toriola, has paid $4.4 million for the remaining minority ownership in its payment service arm, Momo Payment Service Bank Limited (MoMo PSB). MoMo PSB becomes MTN Nigeria’s wholly-owned subsidiary as a result of this transaction.
The transaction, announced on the NGX website, confirmed MTN Nigeria’s acquisition of a 7.17 percent share from Acxani Capital Limited. MTN Nigeria initially owned 80 percent of MoMo PSB, with Acxani Capital holding the remaining 20 percent. However, Acxani’s share was reduced to 7.17 percent prior to the purchase.
MTN Nigeria and Acxani Capital have agreed on a purchase price of N6.95 billion for the 7.17 percent share. The acquisition resulted in a N12.97 billion ($8.1 million) drop in MTN’s “other reserves.” The entire price of N16.35 billion ($10.3 million) includes the payment of N6.95 billion ($4.4 million) to Acxani, the investment of N9.4 billion ($5.9 million) in MoMo PSB, and the acquisition of N3.38 billion ($1.5 million) in assets from Acxani Capital.
MoMo PSB was licensed by the Central Bank of Nigeria (CBN) in 2022 and represents MTN Nigeria’s strategic foray into the fintech industry, offering a variety of payment options. This initiative is part of MTN Nigeria’s larger strategy to improve its digital service offerings and increase its footprint in the financial services sector.
MTN Nigeria, a subsidiary of the MTN Group, Africa’s premier mobile network provider, provides a full range of telecommunications services, including mobile network access, internet connectivity, bill payments, and device financing options.
Karl Toriola, a Nigerian business expert who took over as CEO of MTN Nigeria in October 2020 after serving as VP of MTN’s West and Central Africa area, has played a key role in the company’s recent financial success.
MTN Nigeria recently announced intentions to create West Africa’s largest data center, a 1,500-rack facility certified at Tier 4 for top-tier reliability with a 99.995% uptime. Its sales in the first half of 2024 increased by 32.8 percent to $927.07 million.
