CBN issues circular on requirement for payment systems
By Kayode Tokede
The Central Bank of Nigeria (CBN) on Monday issued a circular introducing new licence requirement for Nigerian payments systems.
The circular classifies payment service providers into six major categories and introduces permissible activities for each of the licence category.
The six categories are Switching and processing licence, bile money operator licence, Payment Solution Services (PSS), Payment Terminal Service Provider (PTSP) licence, Payment Solution Service Provider (PSSP) and Super Agent Licence.
Specifically, eligibility for Mobile Money Operator Licence, according to the CBN circular stated that, “Any corporate entity registered by the Corporate Affairs Commission (CAC), with Memorandum and Article of Association (MEMART).”
On capital requirement, the CBN stated that Money Market Operator Licence must have N2 billion as shareholders’ funds unimpaired by losses and also preceding 3-years audited financial statements of the company (If applicable)
Others are “Escrow of refundable N2billion into CBN PSP Share Capital Deposit Account No. 1000014009; Deposit for escrow must be in full (one lump sum); It must be made in the name of the company applying for licence (not an individual or related company) and Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.”
The requirement for PSP, according to CBN is “N250 million shareholders’ funds unimpaired by losses.
“Preceding 3-years audited financial statements of the company (If applicable) and Escrow of refundable N250million (for entities applying for the three licences at a time: PSSP – N100million, PTSP – N100million, and Super Agent – N50million) into CBN PSP Share Capital Deposit Account No. 1000014009,” as state by CBN for capital requirement on PSP.
Switching and Processing Licence, the CBN demanded N2 billion shareholders’ funds unimpaired by losses)
Other requirements are. “Preceding 3-years audited financial statements of the company (If applicable). Preceding 3-years audited financial statements of the company (If applicable)
“Escrow of refundable N2bn into CBN PSP Share Capital Deposit Account No. 1000014009- Deposit for escrow must be in full (one lump sum); It must be made in the name of the company applying for licence (not an individual or related company) and Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.”
Requirement for PTSP, according to the apex bank circular is N100 million shareholders’ funds unimpaired by losses and preceding of 3-year audited financial statements of the company (If applicable).
PSSP requirement is N100 million shareholders’ funds unimpaired by losses.
According to the circular, “Preceding 3-year audited financial statements of the company (If applicable) Escrow of refundable N100m into CBN PSP Share Capital Deposit Account No. 1000014009.”
On application and Licensing Fees, the circular said, “Non-refundable application fee of N100,000.00 (One hundred thousand naira) payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.
“Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.”
The circular also said licence validity include “Approval-in-Principle for six (6) Months; Commercial licence validity is as determined by the Bank renewable upon satisfactory performance of operations.
“Others, as advised from time to time”
In addition, capital requirement for Super Agent Licence is N50 million shareholders’ funds unimpaired by losses.
Others are “Preceding 3-year audited financial statements of the company (If applicable); Escrow of refundable N50m into CBN PSP Share Capital Deposit Account No. 1000014009.”
