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MTN Nigeria Approves Bold N152bn Fintech Stake Sale

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MTN Nigeria fintech stake sale sees company plan to sell 60% of MoMo and Y’ello Digital for N152bn under strategic restructuring deal

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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.

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Theparkpay Technologies Limited Strengthens Global Payments Infrastructure with UK FCA Licence

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Theparkpay UK FCA licence strengthens the fintech’s global payments infrastructure as it expands regulated cross-border services across key markets (more…)

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Wale Tinubu Says Nigeria’s Creativity Can Drive Exports

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Wale Tinubu says Nigeria’s creativity can become a major export industry, creating jobs, attracting foreign exchange and building sustainable businesses (more…)

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TotalEnergies, AMNI Approve $800m Ima Gas Project

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TotalEnergies and Nigerian independent energy company AMNI International have taken the Final Investment Decision on the $800 million Ima Gas Project, more than five decades after the gas field was discovered.

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The Ima Gas Project, located in shallow waters across Oil Mining Leases 112 and 117 near Bonny Island, Rivers State, is expected to begin production in 2028 and reach a plateau of 350 million cubic feet of gas per day.

The development is expected to play a major role in supplying feed gas to Nigeria LNG, with the Ima field projected to provide about one-third of the additional gas required for the ongoing Train 7 expansion.

Train 7 is expected to increase Nigeria LNG’s liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum, strengthening Nigeria’s capacity to process and export liquefied natural gas.

The Ima field was discovered in 1973 but remained undeveloped for more than 50 years. The Final Investment Decision provides the commercial and financial basis for finally developing the long-dormant resource.

Under the development plan, TotalEnergies will operate the project with a 40 per cent interest, while AMNI will hold the remaining 60 per cent.

The field will be developed using a single offshore platform connected to Nigeria LNG’s facility on Bonny Island through a 22-kilometre pipeline.

TotalEnergies said its investment in the project is more than $600 million, while the Federal Government described the overall Final Investment Decision as an $800 million investment.

At the FID signing ceremony in Abuja, TotalEnergies Exploration and Production Nigeria Managing Director, Mathieu Bouyer, described the decision as the culmination of a development process that had stretched across several decades.

He said the project reflected increased confidence in Nigeria’s investment environment and highlighted reforms targeting the non-associated gas sector as part of the factors that helped make the development commercially viable.

President Bola Tinubu welcomed the investment, saying the project demonstrated the potential of reforms introduced to reduce the cost and time required to develop oil and gas projects.

The President said the government had introduced incentives aimed specifically at unlocking onshore and shallow-water gas projects that had remained undeveloped for years.

He said the Ima development would create opportunities for Nigerian businesses, engineers, technicians and contractors, while generating jobs, economic activity in host communities and additional export earnings.

The project is also expected to have a strong Nigerian content component. TotalEnergies said all key contractors for the development would be Nigerian companies, while about 60 per cent of the workforce during the development phase is expected to come from host communities.

The development will incorporate measures aimed at reducing emissions. TotalEnergies said the platform would receive electricity from shore, operate without routine flaring and use permanent methane detection and monitoring systems.

The Federal Government said the project is part of efforts to turn Nigeria’s large natural gas reserves into productive assets capable of supporting industrialisation, energy supply, jobs and export earnings.

Special Adviser to the President on Energy, Olu Verheijen, said the Ima development illustrated the importance of creating commercial and investment conditions that allow previously stranded resources to be developed.

The government also noted that Nigerian financial institutions arranged 77 per cent of the project’s financing, further highlighting the participation of domestic financial institutions in the development.

For Nigeria LNG, the project comes as the company continues work on the Train 7 expansion, which is designed to increase the Bonny Island plant’s liquefaction capacity and strengthen the country’s position in the global LNG market.

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