Economy
MTN Values Mobile Money Business at $6bn
By Adedapo Adesanya
MTN has valued its mobile money business fondly called MoMo at about $6 billion as it prepares to sell or list a minority stake to draw global investors, according to a report by the Financial Times.
This was disclosed by the company’s Chief Executive Officer, Mr Ralph Mupita, that the business should be worth at least $5 billion or $6 billion and should be listed within the next year.
The South African telecommunications company has 280 million global subscribers and the mobile money arm accounts for more than 15 per cent (46 million).
The plan, which was initially unveiled in March, is part of a strategy shift to refocus its business and cut $3 billion of net debt.
He was quoted as saying, “We think the best way to run these businesses is to structurally separate them.”
Mr Mupita further said that the move would unlock the value hidden in MTN’s $11 billion market capitalisation.
The group wants to tap into growing investor interest in the mobile money businesses built by African telecoms in the past decade that allow phone subscribers to send or receive money outside banks and increasingly sell ancillary services such as microinsurance.
Mr Mupita also revealed that the group’s financial services interests also include an insurance joint venture with over 10 million customers.
Reason for mobile money business separation
Explaining the rationale, the CEO said separating these businesses has become more pressing as their scale has become “quite material.”
He said despite regulatory scrutiny on the ventures being undertaken by mobile phone companies in Africa, regulators have welcomed the plan.
“In the discussions we’ve had with regulators, they welcome this,” Mr Mupita said.
It is not stopping there, MTN is also set to raise cash with a sale and leaseback of most of the group’s mobile phone towers in South Africa by the end of the year, and it is exiting its troubled Middle East operations.
The company commended its strides in its largest market, Nigeria which accounts for 40 per cent of group earnings and 41 per cent of its new subscribers last year, noting that it is positioned to grow higher.
“There is a lot we can control in Nigeria. We think Nigeria is a huge data story,” he said. “There are still low levels of internet penetration which we believe we are well-positioned to drive higher.”
Airtel did something similar
Rival, Airtel Africa, recently sold minority stakes in its mobile money business, valuing it at more than $2.6 billion, excluding cash and debt.
The Rise Fund, the impact investing arm of buyout firm TPG, and Mastercard bought stakes for $200 million and $100 million respectively.
“We think that the fintech business will be worth more than $5 billion, reading across from the Airtel Africa transaction,” Mr Mupita told FT.
At 46 million subscribers, MTN’s mobile money business has more than double the number of Airtel Africa, which is about 21 million.
By Adedapo Adesanya
Six securities led by FrieslandCampina Wamco Nigeria Plc further weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.48 per cent on Tuesday, June 9.
The notable dairy firm lost N7.87 during the trading day to close at N173.81 per unit compared with the previous session’s N181.68 per unit, Nitrox Industrial Gases Plc depreciated by N2.42 to N21.88 per share from N24.30 per share, Afriland Properties Plc dipped by N1.25 to N15.55 per unit from N16.80 per unit, Food Concepts Plc stumbled by 27 Kobo to N2.48 per share from N2.75 per share, UBN Property Plc dropped 9 Kobo to settle at N2.11 per unit versus N2.20 per unit, and Industrial and General Insurance (IGI) Plc crashed by 4 Kobo to 50 Kobo per share from 54 Kobo per share.
As a result of these losses, the market capitalisation went down by N12.50 billion to N2.593 trillion from N2.606 trillion, and the NASD Unlisted Security Index (NSI) declined by 20.89 points to 4,335.31 points from 4,356.20 points.
Business Post reports that there was a price gainer yesterday, and this was Central Securities Clearing System (CSCS) Plc, which improved its value by N2.65 to N81.13 per unit from N78.48 per unit.
The volume of transactions soared on Tuesday by 644.3 per cent to 1.6 million units from 213,188 units, the value of trades increased by 208.6 per cent to N62.3 million from N20.2 million, and the number of deals surged by 64 per cent to 41 deals from 25 deals.
The most active stock by value on a year-to-date basis remained Great Nigeria Insurance (GNI) Plc, with 3.4 billion units worth N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and CSCS Plc with 65.1 million units sold for N4.4 billion.
GNI Plc was also the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units traded for N415.7 million.
By Adedapo Adesanya
The Naira was exchanged at N1,360.55/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, June 9, compared with the N1,362.84/$1 it was exchanged a day earlier, indicating an appreciation of N2.29 or 0.17 per cent against the United States Dollar.
It also gained 74 Kobo against the Euro in the same market segment to quote at N1,573.61/€1, in contrast to Monday’s closing price of N1,574.35/€1, but lost N1.71 against the Pound Sterling to trade at N1,823.00/£1 versus the preceding day’s N1,821.29/£1.
At the black market window, the Nigerian currency maintained stability against the greenback during the session at N1,380/$1, and also traded flat at the GTBank FX counter at N1,373/$1.
Market analysts say the ongoing implementation of the fourth edition of the Foreign Exchange Manual by the Central Bank of Nigeria (CBN) since June 1 has strengthened the Naira and the country’s foreign reserves, bolstering confidence in the market.
The new manual is expected to deepen FX transparency, improve liquidity and strengthen market confidence and liquidity, as it aligns with the apex bank’s broader vision of ensuring that businesses and individuals have equal access to FX in a transparent and liquid market.
The gross external reserves have climbed to a record $50.04 billion, reinforcing investor confidence and boosting the CBN’s capacity to support the local currency.
As for the cryptocurrency market, expectations for higher interest rates sapped demand for non-yielding assets. The latest crypto pullback appears driven by a short squeeze rather than fresh buying, as more than $500 million in bearish bets were liquidated and spot demand.
Cardano (ADA) depreciated by 5.5 per cent to $0.1603, Ripple (XRP) declined by 5.2 per cent to $1.11, Solana (SOL) fell by 4.6 per cent to $64.05, Ethereum (ETH) tumbled by 3.5 per cent to $1,626.51, Dogecoin (DOGE) crashed by 3.6 per cent to $0.0835, Bitcoin (BTC) dropped 3.2 per cent to trade at $61,292.98, Binance Coin (BNB) slumped by 2.9 per cent to $585.26, and TRON (TRX) slipped by 0.9 per cent to $0.3220, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $0.9997 and $0.9998, respectively.
By Aduragbemi Omiyale
A bill to regulate the cryptocurrency ecosystem in Nigeria passed second reading at the Senate during a plenary on Tuesday presided over by the Deputy Senate President, Mr Jibrin Barau.
Mr Barau, who sponsored the bill titled Virtual Asset Service Providers Regulation Bill, 2026, said that when passed into law, the piece of legislation would protect stakeholders from exploitation and promote confidence.
According to him, it will also place Nigeria among African countries such as Kenya, South Africa and Ghana that have adopted formal regulatory frameworks for cryptocurrency and digital asset transactions, while empowering regulators to license operators and combat fraud, money laundering and terrorism financing.
The Kano lawmaker noted that he pushed for this because of the absence of a comprehensive regulatory and supervisory framework for virtual assets, digital assets and Virtual Asset Service Providers (VASPs) in the country.
But he said that with this, the nation’s digital economy would become robust, with investors having the confidence to explore opportunities in the market.
One of the Senators who spoke on the bill, Mrs Natasha Akpoti-Uduaghan, threw her weight behind it, noting that her son, who operates a gaming platform with a large global user base, is having a tough time getting partners to set up operations in Nigeria due to the lack of a robust regulatory environment.
She stated that billions of dollars in potential investments and job opportunities could be lost if the country fails to create the necessary legal framework for emerging digital industries.
According to her, many young innovators are being forced to take their businesses abroad, lauding the sponsor of the bill.
Others who commented on the bill emphasised that virtual assets remain an inevitable feature of the modern global economy, warning that continued regulatory gaps could drive investments and business activities into unregulated channels.
They argued that effective regulation would protect millions of Nigerians, particularly young entrepreneurs and traders, who depend on cryptocurrency and related technologies for employment and income.
After deliberations, the lawmakers passed the bill for second reading and referred it to the Senate Committee on Capital Market for further legislative scrutiny. The team is expected to submit its report within four weeks.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn