CBN grants approval in principle to MTN, Airtel to operate PSB in Nigeria

Admin November 5, 2021

November 5, 2021

The Central Bank of Nigeria (CBN) has granted an approval in principle to MTN Nigeria Communications Plc. and Airtel Nigeria towards the licensing of Payment Service Bank (PSB)

Both companies in a statement on Friday confirmed the development.

Airtel in its statement said that its subsidiary SMARTCASH Payment Service Bank Limited (“Smartcash”) “has been granted approval but that the final approval is subject to the Group satisfying certain standard conditions within six months.

“Segun Ogunsanya, CEO, Airtel Africa, said, “I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating licence and commence operations”.

“The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services. I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.”

However for MTN Nigeria Communications Plc’s MoMo Payment Service Bank Ltd was granted the approval in principle to operate a service bank business in Nigeria.

According to MTN’s statement, “This is the first step in a long process that would lead to an eventual approval. In other words, MTN Nigeria would be required to fulfil a number of conditions, even as “the decision to issue a final approval is firmly within the regulatory purview of the CBN.”

MTN Nigeria expressed optimism that it would eventually get the PSB license, and reaffirmed its commitment to the financial inclusion agenda of the CBN in Nigeria.