CBN approves MTN’s operation of Momo Payment Service Bank Ltd in Nigeria

MTN said in a corporate report filed with the Nigerian Exchange and reviewed by Business Insider Africa that the apex bank gave final permission in a letter dated April 8, 2022.
 
“MTN Nigeria Communications Plc (MTN) has received a letter from the CBN dated 8 April 2022 addressed to Momo PSB, confirming final authorisation to begin operations. In compliance with the CBN’s criteria, the start date will be communicated to the CBN “MTN said in part in a statement.
 
Keep in mind that the final clearance came after MTN gained an approval in principle in November 2021, according to Business Insider Africa. MTN has reaffirmed its commitment to supporting financial inclusion in Africa’s most populated country following the final approval.
 
MTN and other non-bank players, as you may know, have been waiting for their PSB licenses since the Nigerian government first declared its willingness to give them in 2018. The statement was hailed as a positive step forward in what was dubbed the “financial revolution.” MTN and Airtel, for example, were looking forward to utilizing the more than 60 million Nigerians who are thought to be financially illiterate by providing them with financial tools.
 
Only a few of these licenses have been issued since then, unfortunately. Some observers believe Nigerian banks are attempting to sabotage the strategy because they are concerned about what the introduction of PSBs could mean for their operations.
 
Despite the delay, the telecom businesses have carefully awaited the announcement. They recognize the numerous prospects that exist, as well as the fact that the PSB licenses would be extremely helpful to their enterprises, which explains why they are waiting. A PSB license, according to Raghunath Mandava, the former CEO of Airtel Africa, will “dramatically improve financial inclusion in the country.”
 
One of the primary requirements for operating a payment service bank in Nigeria is to achieve a minimum capital requirement of $12.2 million (N5 billion).