By: Bimbola Hassan
MTN Nigeria shareholders have approved a major restructuring that will see the company divest a controlling stake in its fintech subsidiaries, marking a significant shift in Nigeria’s telecoms and digital finance landscape.
At a meeting held on April 30, 2026, investors endorsed the move through a formal resolution backing a “structural separation” of the fintech business. The transaction will transfer majority ownership of MoMo Payment Service Bank and Yellow Digital Financial Services to parent company MTN Group.
Under the terms of the deal, MTN Group will inject about N152.06 billion into the fintech units in exchange for a 60% controlling stake, while MTN Nigeria’s shareholding will be reduced to 40%. Completion is expected by December 31, 2026, subject to regulatory approvals.
The company said the decision reflects the heavy funding requirements of the fintech business, which, although high-growth, remains loss-making and demands substantial capital to scale payment infrastructure and agent networks.
By stepping back from majority ownership, MTN Nigeria aims to redirect capital toward strengthening its core telecommunications operations and improving returns to shareholders. The restructuring will also simplify regulatory oversight, leaving the company solely under the supervision of the Nigerian Communications Commission rather than navigating both telecom and financial regulatory frameworks.
To ensure transparency, the vote complied with rules set by the Nigerian Exchange Limited, with all interested parties excluded from the decision-making process.
The board said the separation would allow the company to prioritise investments where they generate the fastest returns, particularly in network expansion and service quality.
Earlier, MTN Nigeria reported a sharp increase in capital expenditure for the first quarter of 2026, underscoring its aggressive push into 5G and data services. Spending rose by 92.8% to N390.3 billion, as the company invested heavily in infrastructure to support surging demand.
Data usage continued to drive growth, with active users rising 9.5% to 55 million and traffic increasing by nearly 23%. Total subscribers reached 89.5 million, boosted by 2.3 million new customers in the quarter.
Financial performance also strengthened, with service revenue climbing 41.8% to N1.5 trillion and profit after tax surging 165.9% to N355.5 billion, signalling recovery from earlier currency pressures.
However, CEO Karl Toriola warned that rising energy costs pose a growing risk. With unreliable grid power, the company relies heavily on diesel to run its network infrastructure.
MTN said if diesel prices average N2,000 per litre in the second half of 2026, it could reduce full-year EBITDA margins by up to two percentage points and impact profits by as much as N140 billion.
Despite having largely eliminated foreign exchange exposure after repaying $105 million in dollar-denominated loans, the company noted that energy costs are becoming a structural challenge.
In response, MTN is expected to accelerate its shift toward alternative energy sources, while moderating capital expenditure later in the year to balance network expansion with cost pressures.