MTN Nigeria has announced the acquisition of the remaining minority shares in MoMo Payment Service Bank (MoMo PSB) from Acxani Capital for ₦6.95 billion. This transaction, disclosed on the Nigerian Exchange (NGX) website, finalizes MTN Nigeria’s complete ownership of MoMo PSB, transitioning the fintech solution into a wholly-owned subsidiary.
Background of the Acquisition
MoMo PSB, initially licensed by the Central Bank of Nigeria (CBN) in 2022, started with MTN Nigeria holding an 80% stake, while Acxani Capital owned 20%. In May 2024, Acxani Capital proposed to sell their stake, which by then had been diluted to 7.17%. The agreement between MTN Nigeria and Acxani Capital was sealed for ₦6.95 billion, reflecting a broader financial restructuring that included a ₦12.97 billion reduction in MTN’s “Other Reserves”. The total expenditure of ₦16.35 billion encompassed the payment to Acxani and an additional ₦9.4 billion investment in MoMo .
Financial and Operational Impact
By the end of Q2 2024, MoMo PSB demonstrated significant growth. The company reported 5.5 million active wallets, up by 701,000 from Q1. Revenue for the first half of 2024 reached ₦48.6 billion, an 11% increase from ₦43.6 billion in H1 2023. This growth was driven primarily by the airtime lending service, Xtratime. Additionally, the number of MoMo agents surged to 239,000, marking an increase of about 498,000 agents within six months. Transaction volume also saw a 33.4% year-on-year rise during this period .
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Cash Holdings and Liabilities
Interestingly, MoMo PSB’s cash held for customers declined by 72%, from ₦7.6 billion at the end of 2023 to ₦2.15 billion in mid-2024. Despite this, the company maintained a liability of approximately ₦26.6 billion to MTN Nigeria, with ₦11.2 billion paid during the half-year.
Profile of Acxani Capital
Acxani Capital, previously holding a 7.17% stake in MoMo PSB, is owned by Munir Ja’afaru, a former director of the now-defunct NITEL and a prince in the Zazzau Emirate. Ja’afaru has also served as the former district head of Basawa in Zaria and chaired the National Export Processing Zones Authority (NEPZA) until 2004 .
Conclusion
The acquisition of the remaining shares in MoMo PSB solidifies MTN Nigeria’s strategic move to fully control its fintech subsidiary. This transaction is expected to enhance MTN’s ability to leverage MoMo’s growth trajectory, further boosting its financial technology offerings and market presence in Nigeria. The steady increase in active wallets, agents, and transaction volumes underscores MoMo’s significant potential in the Nigerian fintech landscape.
