CBN approves MTN to operate a bank for payment services

MTN received final approval by the Central Bank of Nigeria (CBN), to operate as Momo Payment Service Bank Limited (“Momo PSB”) 

For those with low incomes or who do not use banks to transact, they can receive financial services through PSB operators using digital methods. 

“MTN Nigeria Communications PIc (MTN Nigeria) announces receipt of a letter from the CBN dated April 8, 2022, sent to Momo PSB conveying final authorization to begin operations.” 

MTN Nigeria’s company secretary, Uro Ukpanah, made the announcement in a statement. 

“MTN Nigeria reaffirms its commitment to the CBN’s and the Federal Republic of Nigeria’s financial inclusion agendas, and we welcome this opportunity to help them succeed.” 

CBN rules state that the primary purpose of PSB licenses is to improve financial inclusion, especially in rural areas, and make it easier to transact. 

PSBs will operate in areas where Nigerians don’t have access to banking services, and in rural areas. They are expected to have at most 50% access in rural areas. 

As a result, MTN Nigeria will be joining Moneymaster PSB, which is a subsidiary to Glo, and 9PSB which is a subsidiary to 9mobile in the operation in the fintech industry.

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