The South African multinational company that operates in the telecommunications market NTD received confirmation from the Central Bank of Nigeria (CBN) to operate the Momo Payment Service Bank Limited (Momo PSB) service throughout the country.
The information was revealed in a statement issued by Uro Ukpanah, Secretary of the multinational, with the caption “THE CENTRAL BANK OF NIGERIA GRANTS FINAL APPROVAL for MOMO PAYMENT SERVICE BANK LIMITED TO COMMENC OPERATIONS".
With this approval, MTN Nigeria joins Airtel Africa, two of the country's largest telecommunications companies, who have received the “Approval in principle” (AIP) of the Central Bank of Nigeria to function as Payment Service Banks.
"MTN Nigeria Communications Plc (MN Nigeria) confirms receipt of a recent letter dated 8th April 2022 from CBN addressed to Momo PSB expressing final authorization to commence operations“, can be read in the MTN communiqué.
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"The start date will be informed to CBN in accordance with its regulations“, adds the statement, without specifying when operations will begin.
"MTN Nigeria underscores its dedication to the financial inclusion agendas of CBN and the Federal Republic of Nigeria, and we are excited about this opportunity to assist in their implementation.“, concludes the document.
To inform CBN's main objective in granting PSB licenses, according to apex banking regulations, is to increase financial inclusion in the country, mainly in rural regions and facilitate transactions.
These two are expected to operate in rural areas and in places where Nigerians do not have access to banking services. In rural areas, they are also mandated to provide at least 50% physical entry points (sometimes known as kiosks).
