MTN Nigeria secures CBN license to compete with traditional banks, POS operators

The Central Bank of Nigeria (CBN) has granted MTN a final approval to operate as Momo Payment Service Bank Limited (Momo PSB).

This was disclosed on Monday in a press release titled “the central bank of Nigeria grants final approval for momo payment service bank limited to commence operations” signed by Uro Ukpanah, the Company Secretary.

The statement by MTN reads, “MTN Nigeria Communications PIc (MTN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.”

However, the statement failed to announce the date of commencement.

It said, “the date of commencement will be communicated to the CBN in accordance with its requirements”.

CBN in its guidelines published on its website said the key objective of issuing PSB licenses was to boost financial inclusion, especially in rural areas and facilitate transactions.

“To enhance financial inclusion in rural areas by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other entities through high-volume low-value transactions in a secured technology-driven environment,” the CBN had stated.

The new move by MTN Nigeria will see it competing with traditional banks and Point Of Sales (POS) operators for market shares.