By Abimbola Abdullahi

MTN Nigeria and Airtel Africa Plc have received approval in principle to operate a payment service bank (PSB) in the country.

   The telecommunication firms confirmed on Friday that the Central Bank of Nigeria (CBN) has granted them approval in principle for the proposed payment service bank (PSB).

  MTN is proposing MoMo Payment Service Bank Limited (MTN’s PSB), while Airtel is planning PSB via its Smartcash Payment Service Bank Limited. The duo is to bring more people into the financial inclusion space.

  The two firms would be required to fulfill some conditions before BN will grant an operating license.

  PSB operators provide financial services through digital means to low-income earners and people that do not use banks or banking institutions for transactions.

   Company Secretary, MTN Nigeria, Uto Ukpanah, in a statement said, MTN Nigeria remained optimistic that it would eventually get the PSB license.

  Ukpanah said: “This is the first step in the process towards a final approval, subject to the fulfillment of certain conditions as stipulated by the CBN. The decision to issue a final approval is firmly within the regulatory purview of the CBN and we respect their right and judgment in that regard.

   “MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and continues to explore means whereby it can contribute to its fulfillment.

   “While we look forward to the eventual grant of a final PSB license, we will continue to communicate material information in accordance with regulatory obligations and guidelines,” Ukpana stated.

   Chief Executive Officer, Airtel Africa, Segun Ogunsanya, said, “I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating license and commence operations.

   “The final operating license will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services. I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy,” he said.

By Abimbola Abdullahi

MTN Nigeria and Airtel Africa Plc have received approval in principle to operate a payment service bank (PSB) in the country.

   The telecommunication firms confirmed on Friday that the Central Bank of Nigeria (CBN) has granted them approval in principle for the proposed payment service bank (PSB).

  MTN is proposing MoMo Payment Service Bank Limited (MTN’s PSB), while Airtel is planning PSB via its Smartcash Payment Service Bank Limited. The duo is to bring more people into the financial inclusion space.

  The two firms would be required to fulfill some conditions before BN will grant an operating license.

  PSB operators provide financial services through digital means to low-income earners and people that do not use banks or banking institutions for transactions.

   Company Secretary, MTN Nigeria, Uto Ukpanah, in a statement said, MTN Nigeria remained optimistic that it would eventually get the PSB license.

  Ukpanah said: “This is the first step in the process towards a final approval, subject to the fulfillment of certain conditions as stipulated by the CBN. The decision to issue a final approval is firmly within the regulatory purview of the CBN and we respect their right and judgment in that regard.

   “MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and continues to explore means whereby it can contribute to its fulfillment.

   “While we look forward to the eventual grant of a final PSB license, we will continue to communicate material information in accordance with regulatory obligations and guidelines,” Ukpana stated.

   Chief Executive Officer, Airtel Africa, Segun Ogunsanya, said, “I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating license and commence operations.

   “The final operating license will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services. I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy,” he said.