MTN Announces Plan to Merge Finance Subsidiaries Amid CBN's Ban on Banking Agents' Use of PoS Terminal
- MTN has announced a plan to merge its two finance subsidiaries, Momo and Yello Digital Financial Services Limited
- The merger will offer more comprehensive and innovative financial solutions to customers.
- The move is coming days after the Central Bank of Nigeria instructed banking agents not to use PoS terminals
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MTN, one of Nigeria's leading telecommunications companies, has announced plans to merge its two finance subsidiaries.
The two subsidiaries are Mobile Money Payment Service Bank (MoMo PSB) and Yello Digital Financial Services Limited.
The plan for the merger was revealed in its proposed resolutions for its 2023 Annual General Meeting scheduled to hold in April.
MTN speaks on the merger
The merger is expected to streamline operations and improve efficiency as the company looks to expand its fintech offerings across the continent.
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MTN Nigeria added that the proposed merger would bring enhanced value to the company and its shareholders, the Punch reports.
In a statement, the company said:
"The merged company 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”.
The Central Bank of Nigeria (CBN) granted MTN’s Yello Digital Financial Services Limited a full Super Agent Licence in 2019.
Super agents are businesses licensed by the CBN to recruit agents to provide financial services to communities on behalf of banks to increase financial inclusion.
Momo PSB is the payments unit of MTN Nigeria Communications Plc, which began operations in 2022.
CBN PoS terminals
MTN decision is coming a few days after the CBN banned banking agents from using PoS terminals.
This is one of the 16 rules that CBN introduced to protect the services that banking agents provide and to safeguard the industry.
CBN set for major decision as naira crisis drives inflation rate to 17-year high
Meanwhile, in another report, Legit.ng revealed that Nigeria's inflation reached a 17-year high in February due to cash scarcity and higher prices for food and other goods and services.
Bauchi state was the hardest hit, while residents of Sokoto were the least affected.
As a result, inflation figures will form a large part of the Central Bank of Nigeria's meeting later in March.