By Martin Ekpeke
MTN Nigeria Communications PLC has finalized the acquisition of its fintech subsidiary, MoMo Payment Service Bank (MoMo PSB), in a deal valued at N16.35 billion.
The telecommunications giant acquired the remaining 7.17% stake in MoMo PSB for N6.95 billion, solidifying its position in Nigeria’s burgeoning financial services sector. This strategic move aligns with MTN Nigeria’s broader vision to expand its digital financial services and enhance financial inclusion across the country.
A Significant Milestone
The acquisition, which was first announced in May 2024, has now been fully executed. By taking full ownership of MoMo PSB, MTN Nigeria aims to leverage the fintech’s mobile banking infrastructure to deliver innovative financial solutions and improve customer experience.
MoMo PSB’s Strong Performance
MoMo PSB has experienced significant growth in 2024, driven by its expanding product offerings and increasing customer base. Key highlights include:
- Revenue Growth: The fintech company recorded a 11% increase in revenue during the first half of 2024, primarily driven by its airtime lending service, Xtratime.
- User Growth: The number of active wallets surpassed 5.5 million, reflecting a 701,000 increase from the previous quarter.
- Agent Network Expansion: MoMo PSB’s agent network expanded to 498,000 agents, facilitating wider access to financial services.
- International Expansion: The fintech company expanded its services to 10 additional countries, enabling cross-border remittances.
With the full integration of MoMo PSB, MTN Nigeria is poised to further strengthen its position as a leading player in Nigeria’s digital economy.