Ralph Mupita-led MTN Group moves to acquire 60% stakes in MTN Nigeria's MoMo and Y'ello Digital for N95 billion

Ralph Mupita-led MTN Group is tightening its grip on its Nigerian fintech operations. The South African telecoms giant has announced plans to acquire 60% stakes in both MTN Nigeria's MoMo Payment Service Bank and Y'ello Digital Financial Services for a combined N95.5 billion.

MTN Nigeria disclosed the transaction on Tuesday in an explanatory note to shareholders ahead of its annual general meeting scheduled for April 30. The deal is structured as an intra-group restructuring designed to reduce MTN Nigeria's exposure to what it described as loss-making fintech companies while bringing the group's fintech assets under centralized ownership.

The acquisition will be conducted through MTN Group Fintech, a dedicated subsidiary established by the parent company. MTN Nigeria will retain a 40% stake in both entities after the transaction closes.

The transaction runs in two phases. The first phase sees MTN Group Fintech acquire its 60% position in MoMo and Y'ello Digital through a combination of newly issued shares in both companies and a secondary acquisition of existing shares in MoMo from MTN Nigeria. The agreed valuation of N95.5 billion is set on a debt-free, cash-free basis. That structure implies a total capital injection of approximately N152.06 billion into the two fintech businesses, payable in cash, non-cash consideration or a combination of both.

The second phase creates a financial holding company called Fintech HoldCo. MTN Group Fintech will own 60% and MTN Nigeria will hold 40%. Once the Central Bank of Nigeria grants regulatory approval, Fintech HoldCo will acquire all shares held by both parties in MoMo and Y'ello Digital, consolidating both assets under a single holding structure.

MoMo operates as a payment service bank offering deposits, transfers, payments and digital wallets to individuals and small businesses across Nigeria. Y'ello Digital is a licensed super-agent providing agency banking services including cash deposits, withdrawals and bill payments through MTN's agent network.

MTN Nigeria brought MoMo fully under its ownership in August 2024 when it acquired Acxani Capital's remaining 7.17% stake for N6.95 billion, taking its holding to 100%. The N95.5 billion deal now reverses that structure partially, handing MTN Group direct majority control while keeping MTN Nigeria in the picture as a minority partner.

The move mirrors what MTN has already done in Ghana. MTN Ghana completed a similar MoMo spinoff into a standalone fintech entity, MTN Mobile Money Fintech Limited, on March 31, 2026, following CBN equivalent regulatory approvals. The Ghana restructuring is expected to serve as a template for Nigeria and Uganda, both of which remain subject to shareholder and regulatory sign-off.

Mupita has spoken about separating MTN's fintech business since at least 2021, when he estimated the group's mobile money arm could be worth between $5 billion and $6 billion as a standalone vehicle. The Nigeria restructuring is the most consequential step yet in converting that strategic intention into a formal corporate structure.