Business
MTN Nigeria Approves Bold N152bn Fintech Stake Sale
MTN Nigeria fintech stake sale sees company plan to sell 60% of MoMo and Y’ello Digital for N152bn under strategic restructuring deal
MTN Nigeria Communications Plc on Wednesday announced plans to sell a 60 per cent stake in its fintech subsidiaries, MoMo Payment Service Bank and Y’ello Digital Financial Services, in a N152.06 billion transaction involving its parent company, MTN Group.
Also read: MTN, BOI Launch N1bn Fund to Empower Women
Sale of MTN Nigeria Fintech Stake Announced proposal was disclosed in an information document issued to shareholders ahead of the company’s Annual General Meeting scheduled for April 30, 2026, where approval for the deal will be sought.
Under the arrangement, MTN Group, through MTN Group Fintech B.V., will assume majority ownership of the subsidiaries, while MTN Nigeria retains a 40 per cent equity interest.
The transaction forms part of MTN Group’s long-term “Ambition 2030” strategy, which seeks to strengthen its position across connectivity, digital finance and infrastructure services in Africa.
According to the company, the deal will be executed through a combination of fresh capital injection into the fintech businesses and a secondary share acquisition from MTN Nigeria.
The assets will later be consolidated under a new holding structure to be registered with the Central Bank of Nigeria, establishing a 60:40 ownership model between MTN Group Fintech and MTN Nigeria.
An independent fairness opinion issued by KPMG valued the transaction at N95.5 billion, describing it as fair and reasonable, and indicating a 2.1 times premium over the subsidiaries’ carrying value as of December 2025.
MTN Nigeria stated that the restructuring is necessary due to the capital-intensive nature of its fintech expansion, adding that the new structure will allow increased investment from MTN Group to support growth in Nigeria’s digital financial services space.
The company also said the move will enable it to strengthen its core telecom operations, improve service delivery, and enhance shareholder returns, while maintaining indirect exposure to fintech through its remaining stake.
It further noted that the subsidiaries are currently operating at a loss, adding that the separation is expected to improve overall financial performance and boost free cash flow in the medium term.
Also read: MTN, BOI Launch N1bn Fund to Empower Women
If approved, completion of the transaction is expected by December 31, 2026, subject to regulatory and legal approvals.
Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.
The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.
The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.
The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.
The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.
The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.
The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.
The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.
The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.
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