MTN Nigeria, a telecom company, has proposed merging its two finance subsidiaries; Yello Digital Financial Services Limited and Momo Payment Service Bank Limited.
This was made clear in its proposed resolutions for the company’s April 2023 Annual General Meeting.
According to the business, the proposed merger would “hold the Payment Service Bank licence granted by the Central Bank of Nigeria and will also be capable of performing super-agent services and other permissible activities,” according to the statement.
Momo PSB is MTN Nigeria Communications Plc’s payments division. It began operations in 2022, the same day that Airtel Africa, a rival, announced a similar move by its fintech arm.
Talking about Momo PSB, MTN Nigeria’s President, Karl Toriola said that it upholds the Central government’s “drive towards monetary consideration in Nigeria.
“Not just for those in markets and urban centers, but also for people who are still out of the financial system in rural and remote parts of the country.”
In 2019, MTN’s Yello Digital Financial Services Limited received a complete Super Agent License from the CBN.
Businesses authorized by the CBN to recruit agents to provide communities with financial services on behalf of banks in order to increase financial inclusion are known as super agents.
MTN Nigeria went on to say that the proposed merger will increase the Company’s and its shareholders’ value.