MTN Group has filed an explanatory note with the Nigerian Exchange detailing plans to acquire majority control of MTN Nigeria's two fintech subsidiaries, a deal that will actually restructure how the group's digital financial services operate across the continent.

MTN Nigeria has two fintech businesses that are losing money. The parent company wants to take them off its books, not by shutting them down, but by buying direct majority control and injecting the capital needed to turn them around. That is the short version of a deal that is worth understanding in full.

MTN Group has announced plans to acquire a 60% stake in each of MTN Nigeria's fintech subsidiaries, MoMo Payment Service Bank Limited (MoMo PSB) and Y'ello Digital Financial Services (YDFS) Limited, in a transaction valued at ₦95.5 billion.

The deal was disclosed through an explanatory note to stakeholders filed with the Nigerian Exchange (NGX) on Tuesday, ahead of a formal shareholder presentation at MTN Nigeria's Annual General Meeting (AGM) on April 30, 2026. Completion is expected by December 31, 2026, subject to regulatory approval.

Why MTN Group Is Making This Move

The origin of the deal is actually as a result of the fact that both MoMo PSB and YDFS are currently making losses, and those losses are being consolidated into MTN Nigeria's financial statements, pulling down the telco's overall performance numbers.

The structural separation the deal creates means the fintech subsidiaries' losses will no longer sit on MTN Nigeria's books. The step being taken by MTN Group matters for investors, for dividend capacity, and for how the business looks to the market.

The total investment figure is ₦152.06 billion. MTN Group, operating through MTN Group Fintech B.V., will inject this capital through a combination of primary capital injection into the fintech subsidiaries and a secondary acquisition of shares directly from MTN Nigeria.

Once the transaction is completed, MTN Group will holds 60% of each fintech, while MTN Nigeria retains 40%. Both parties will then transfer their respective stakes into a new Holding Company to be registered with the Central Bank of Nigeria (CBN).

The practical effect for MTN Nigeria is twofold. The company no longer needs to commit as much capital expenditure (CAPEX) to support the fintechs, that responsibility now shifts primarily to the group.

With the fintech losses directly removed from MTN Nigeria's consolidated statements, its balance sheet will strengthen, improving its ability to pay dividends or at minimum maintain dividend stability.

What This Means for MoMo and YDFS

For the two fintech subsidiaries, the deal is an injection of both capital and strategic attention. MoMo PSB is MTN Nigeria's mobile money platform, a payment service bank that operates within Nigeria's CBN-regulated framework for financial inclusion.

YDFS is the group's digital financial services arm, covering a broader range of digital products. Both have been operating at a loss in a market where the competition for mobile money users is significant, and the cost of customer acquisition is high.

The deal's stated objective is to restructure the ownership and operating model of the fintech subsidiaries to accelerate growth and better capture opportunities in Nigeria's digital financial services market.

With MTN Group taking direct majority control, the fintechs gain a parent with both the capital and the strategic interest to drive them toward profitability, rather than continuing as subsidiaries whose losses are absorbed quietly into a larger entity.

Where This Fits in MTN's Bigger Strategy

The acquisition sits within the confines of MTN Group's Ambition 2030 strategy, which positions the group as Africa's leading connectivity, fintech, and digital infrastructure platform business. Fintech is not peripheral to that vision, it is one of the three pillars.

The move to take direct majority control of the Nigerian fintech subsidiaries, rather than managing them as arms-length assets, reflects how seriously the group is treating digital financial services as a long-term revenue stream rather than a supporting function.

Nigeria is the context that makes this particularly significant, with a population of over 230 million, a large unbanked population, and a mobile money market that remains contested despite years of activity. The opportunity for a well-capitalised fintech player is real.

MoMo PSB has the network advantage, MTN Nigeria's subscriber base and distribution reach, that most standalone fintech competitors cannot replicate. The question has always been whether the capital commitment matched the ambition. This deal suggests the group has decided it does.

The deal is still pending regulatory approval, and the preliminary filings have not yet been put to shareholders formally. April 30, which is today, is when MTN Nigeria presents to its AGM.

What happens after that, and how quickly the CBN moves on the holding company registration, will determine whether the December 2026 completion target holds. But the direction is clear: MTN Group is consolidating its fintech bet in Nigeria, and it is doing it with ₦152 billion behind the conviction.