Telecommunications giant MTN has received the final approval to operate as Momo Payment Service Bank Limited (Momo PSB) by Nigeria’s apex bank.
The Central Bank of Nigeria (CBN) disclosed the approval in a press release.
In November 2021, Nigeria’s leading telecommunications companies MTN Nigeria and Airtel Africa received an “Approval in Principle” (AIP) from the Central Bank of Nigeria to operate as Payment Service Banks.
MTN, too, confirmed the approval. “MTN Nigeria Communications PIc (MN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.”
MTN did not specify when operations would start but stated that, “The date of commencement will be communicated to the CBN in accordance with its requirements.”
According to the apex bank guidelines, the key objective of issuing PSB licenses is to boost financial inclusion, especially in rural areas and facilitate transactions.
PSBs are expected to function in rural regions and in areas where Nigerians do not have bank accounts.
PSBs are also expected to have at least 50% physical access points (sometimes known as kiosks) in rural areas.
PSBs may also operate ATMs in some of their locations.
