MTN Nigeria has suggested that its two financial businesses, Momo and Along with Yello Digital Financial Services Limited, there is Payment Service Bank Limited, Entrepreneurng report.
This information was included in the proposed resolutions for its 2023 Annual General Meeting, which is slated to take place in April.
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The company declared that the planned merger will “possess the Payment Service Bank license granted by the Central Bank of Nigeria and will also be capable of providing super-agent services and other approved activities”.
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Momo PSB, a payments division of MTN Nigeria Communications Plc, launched in 2022, the same day rival Airtel Africa revealed a related move by its fintech division.
According to Karl Toriola, CEO of MTN Nigeria, Momo PSB is intended to complement the Federal Government’s initiative to promote financial inclusion in Nigeria.
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Not only for individuals in urban markets and centers but also for those who are still left outside of the financial system in rural and distant parts of the nation, he added.
A complete Super Agent License was given by CBN to MTN’s Yello Digital Financial Services Limited in 2019.
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Super agents are companies that have been granted permission by the CBN to hire agents to offer communities financial services on behalf of banks to improve financial inclusion.
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The planned merger, according to MTN Nigeria, will increase value for the business and its shareholders.
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In the meantime, MTN’s board of directors has put up a scrip dividend plan that would let interested shareholders choose to acquire new common shares in the firm rather than their payout in cash.
If approved at the firm’s AGM, the proposed scrip dividend will apply to dividends announced for the fiscal year ending December 31, 2022, as well as any future dividends declared by the company beginning with the fiscal year 2023.
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In conclusion, the cash, which would normally be distributed as dividends, would be held for working capital and other general business objectives, according to the corporation, making the scrip plan advantageous.
Source: punch
