MTN to merge two finance subsidiaries
MTN Nigeria, a telecommunications company, has proposed merging its two finance subsidiaries, Momo Payment Service Bank Limited and Yello Digital Financial Services Limited.
This was revealed in its proposed resolutions for its 2023 Annual General Meeting, which is set to take place in April.
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 company.
Momo PSB is MTN Nigeria Communications Plc's payments unit, which began operations in 2022 on the same day rival Airtel Africa announced a similar move by its fintech arm.
Speaking about Momo PSB, MTN Nigeria's CEO, Karl Toriola said that it supports the Federal government's "drive towards financial inclusion in Nigeria.
"Not only for those in cities and markets, but also for those in rural and remote areas of the country who are still excluded from the financial system."
MTN's Yello Digital Financial Services Limited was granted a full Super Agent Licence by the CBN in 2019.
The CBN licences super agents to recruit agents to provide financial services to communities on behalf of banks in order to increase financial inclusion.
MTN Nigeria went on to say that the proposed merger will increase value for the company and its shareholders.
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