The Central Bank of Nigeria (CBN) has given MTN and Airtel preliminary approval to operate a payment service bank (PSB) in Nigeria, with the goal of increasing financial inclusion.
Accepting deposits from individuals and small enterprises, which will be insured by the deposit insurance plan, is one of the authorized operations under the AIP license. Carry out payments and remittances over Nigeria’s numerous channels; licensed foreign exchange traders; sale of foreign currencies realized through inbound cross-border personal remittances; It will be able to issue debit and prepaid cards in its name. Operate an electronic wallet; provide financial advice; Invest in securities issued by the FGN and the CBN.
“MTN Nigeria Communications Plc (MTN Nigeria) as promoter got a Permission in Principle (AIP) dated November 4, 2021, from the Central Bank of Nigeria (CBN) for a license application for the proposed MoMo Payment Service Bank Limited,” MTN stated in a statement announcing the approval. This is the initial step in the procedure leading to final approval, which is contingent on the CBN’s approval of specific conditions. The CBN has full regulatory authority over the decision to provide final approval, and we accept their authority and judgment in this regard.”
“Airtel Africa, with operations in 14 countries throughout Africa, announces that its subsidiary SmartCash Payment Services Bank Limited has been given approval in principle to run a payment service bank business in Nigeria,” the company said in a statement. The Group must meet certain standard standards within six months to receive final clearance.”
The approval in principle comes two years after the CBN granted the same kind of license to 9mobile, Globacom, and another telecoms company.