MTN Nigeria Communications (MTNN) Plc said, it has completed the purchase of the 7.17 per cent minority shareholding in MoMo Payment Service Bank Limited (MoMo PSB) previously held by Acxani Capital Limited.
MTNN stated this in a statement signed by its company secretary, Uto Ukpanah on the Nigerian Exchange Limited.
The statement said, “following the completion of the transaction, MoMo PSB is now a wholly owned subsidiary of MTN Nigeria. Management believes this transaction will simplify and strengthen MoMo PSB’s operations, which is crucial for achieving its growth ambitions.”
The company, in its half year results ended June 30, 2024 reported that MoMo PSB’s active wallet hit 5.5 million, reflecting an increase of 701,000 from the first quarter.
Also, in H1, MoMo PSB recorded a revenue of N48.6 billion, marking an 11 per cent growth from the N43.6 billion revenue recorded in H1 2023. MoMo’s growth was driven majorly by Xtratime, the airtime lending service.
The company’s agents also increased by about 498,000 to 239,000 within the half-year, while transaction volume increased by 33.4 per cent year-on-year within the half-year.
Speaking on the company outlook for the second half of the year, CEO of MTN Nigeria, Karl Toriola said: “MTN Nigeria remains focused on navigating the challenging economic landscape in Nigeria and seizing growth opportunities.
“We are committed to implementing strategic initiatives to enhance our performance and strengthen our position in the market. Furthermore, we are steadfast in our efforts to accelerate the growth of our commercial operations, optimising our operational efficiency and bolstering our balance sheet. We will continue efforts to navigate the effects of the NIN-SIM directive on our business while seeking to deliver quality service to our customers.
“MTN Nigeria will remain engaged with the appropriate authorities to make tariff adjustments that support the long-term sustainability of the industry and continued investment.”
He stated that, “in our fintech business, we will build on the momentum in Q2 to drive wallets and MoMo PSB app adoption and the growth of our merchant ecosystem. This will enable us to expand access to financial services and deepen financial inclusion in Nigeria.”
