Multinational mobile telecommunications company, MTN Nigeria has revealed plans to merge its two finance subsidiaries, Momo Payment Service Bank Limited and Yello Digital Financial Services Limited to form one company.
This was revealed in the company’s proposed resolutions for its 2023 Annual General Meeting scheduled to hold on the 18th of April 2023, at the Balmoral Convention Center.
MTN disclosed that the proposed merger will hold the Payment Service Bank license granted by the Central Bank of Nigeria (CBN) and will also be capable of performing super-agent services and other permissible activities.
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Speaking on the merger of Mono PSB and Yello Digital Financial Services (YSFS), MTN’s board of directors said,
“It has been proposed that two of the company’s subsidiaries (MoMo PSB and YDFS) be merged and integrated to form one company, which will hold the Payment Service Bank license granted by the Central Bank of Nigeria and will also be capable of performing super-agent services and other permissible activities. It is anticipated that the merger will enhance the value for the company and its shareholders.” the director stated in the document.”
Also commenting on the Merger, Regarding Momo PSB and YDFS, MTN Nigeria’s CEO Karl Toriola stated that it demonstrates solidarity for the federal government’s drive towards financial inclusion in Nigeria.
He added, “Not just for those in urban centers and markets, but also people in rural and remote areas of the country who remain excluded from the financial system.”
MTN Nigeria’s fintech subsidiary, Mobile Money Payment Service Bank (MoMo PSB), has so far gained traction and contributed to the country’s financial inclusion push. Within a few weeks of commencing operation, the PSB generated transaction volumes of approximately 7 million.
In May 2022, MoMo PSB formally commenced operation following the final approval for a Payment Service Bank (PSB) granted by the Central Bank of Nigeria (CBN).
The key objective of issuing a PSB permit by the CBN was to boost financial inclusion, especially in rural areas, and facilitate transactions.
Momo PSB is a partner in facilitating the actualization of the CBN’s financial inclusion strategy. It is also part of the overall 2025 strategic priorities of the MTN Group.
On the other hand, Yello Digital Financial Service (YDFS) is a subsidiary of MTN Nigeria, which secured a license to begin operations from the Central Bank of Nigeria in 2019. In June 2018, YDFS, registered as a financial technology company in a bid to meet the criteria for a CBN license, was created; it is MTN’s core foothold in Nigeria’s financial ecosystem.
The Super Agent license enables the scale launch of MTN Nigeria’s fintech strategy. The license will enable MTN to convert its existing airtime agents and recruit other small businesses to distribute financial services.
Through its fintech offerings, MTN seeks to unlock economic growth through financial and digital solutions for consumers and businesses of all sizes in Nigeria.