Telecommunications company, MTN Nigeria, plans to merge two of its finance subsidiaries – Momo Payment Service Bank Limited and Yello Digital Financial Services Limited.
The Punch reported that this was disclosed in its proposed resolutions for its 2023 Annual General Meeting scheduled to hold in April.
According to the company, the merger “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.”
The proposed merger, which will be discussed at the company’s 2023 Annual General Meeting in April, will enable the new entity to hold the Payment Service Bank license and perform super-agent services and other allowable activities.
Momo PSB is MTN Nigeria’s payment unit, which started operations in 2022, while Yello Digital Financial Services Limited was granted a full Super Agent License by the CBN in 2019.
The merger aims to support the government’s objective of promoting financial inclusion across Nigeria, particularly in remote and rural areas.
The CEO of MTN Nigeria, Karl Toriola said, the merger will help “drive towards financial inclusion in Nigeria.”
He believes that the merger will enable MTN Nigeria to extend financial services to rural areas and underserved markets.
“Not just for those in urban centres and markets, but also people in rural and remote areas of the country who remain excluded from the financial system, ”he said.
In 2019, the CBN granted Yello Digital Financial Services Limited a Super Agent License, which allows businesses to recruit agents to provide financial services on behalf of banks to boost financial inclusion.
The proposed merger according to MTN is expected to bring more value to the company and its shareholders.
