MTN’s Fintech Restructuring Hits Nigerian Regulatory Hurdles

MTN Group’s efforts to restructure its fintech operations, a move that includes Mastercard acquiring a significant stake in the business, have encountered regulatory challenges in Nigeria.

While the process is progressing smoothly in other markets like Ghana and Uganda, the telecom giant has highlighted complexities in navigating Nigeria’s regulatory landscape.

This development comes as MTN aims to unlock value from its fast-growing fintech division, which has become a key revenue driver.

This strategic move is part of a broader restructuring effort aimed at facilitating Mastercard Inc.’s acquisition of a minority stake in these high-growth units.

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According to MTN Chief Executive Officer, Ralph Mupita, the separation is integral to finalising a deal with Mastercard initially agreed upon in 2023.

While the spin-off process is progressing smoothly in Uganda and Ghana, Nigeria presents significant regulatory complexities.

“Nigeria has a bit more complexity with some more regulatory processes to work through,” Mupita stated.

The separation is a key component of the $5.2 billion deal with Mastercard, which was initially outlined in a memorandum of understanding (MoU) last year. MTN anticipates the completion of definitive investment agreements shortly, pending customary due diligence and closing conditions.

In addition to the fintech restructuring, MTN has also expressed openness to network sharing agreements, aligning with trends observed in the European market.