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MTN receives final approval from CBN to operate Momo Payment Service Bank Ltd in Nigeria

MTN receives final approval from CBN to operate Momo Payment Service Bank Ltd in Nigeria

Momo Payment Service Bank Ltd has been given final license by the Central Bank of Nigeria to begin operations in Nigeria, according to MTN Nigeria, a subsidiary of MTN Group Ltd, based in South Africa.

 

The apex bank gave its final clearance in a letter dated April 8, 2022, according to MTN’s report to the Nigerian Exchange, which was obtained by Business Insider Africa.

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In a letter dated April 8, 2022, MTN Nigeria Communications Plc (MTN) informs Momo PSB that the Central Bank of Nigeria (CBN) has granted final authorisation for the company to begin operations. The CBN will be informed of the start date when it is appropriate,” MTN stated in a statement.

Recall that, as kelgloba revealed, MTN had already been granted approval on a principle basis back in November of 2021. Financial inclusion in Africa will be a top priority for MTN following the final clearance of its mobile money service for Nigeria.

It’s well-known that MTN and other non-bank players have been eagerly awaiting the Nigerian Government’s decision to give their PSB licenses since 2018. Announcement was welcomed as a first step in what was being described as an unprecedented financial shift. MTN and Airtel were eager to take advantage of the estimated 60 million Nigerians who are unbanked by giving them with access to financial instruments.

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Many of these permits have not been issued since that time. As a result of their fears about the impact of the PSBs, several analysts believe Nigerian banks are trying to shorten the plan.

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As a result of this delay, the telecom companies have remained calm and collected. Due to their knowledge and experience, they’ve decided to wait for the PSB licenses, which they believe will be extremely advantageous to their enterprises. At one point, Raghunath Mandava, the former CEO of Airtel Africa, predicted that a PSB license would “dramatically improve financial inclusion” in the country.

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A minimum capital requirement of $12.2 million must be met in order to operate a payment service bank in Nigeria (N5 billion).

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