CBN Fixes N2b Capital For Mobile Money Operators

Mobile Money Operators (MMOs) are to maintain a minimum of N2
billion capital base, the Central Bank of Nigeria (CBN) has
directed in a circular signed by its Director, Payments System
Management Department, Musa Jimoh.

They have also been authorised by the apex bank to hold
customers’ funds under its new licencing framework.

According to the circular, the new framework offers clarity for
new and existing market participants.

Jimoh explained that under the new licensing regime, e-money
issuing, wallet creation, pool account management and other
activities are permissible under super agents.

The CBN director said the new policy aligns with CBN’s
commitment to promote a strong and credible payment system.

He said: “Given the significant evolution and innovation in the
Nigerian payment system, all payment service providers and
stakeholders are invited to note that payments system licensing has
been streamlined according to permissible activities in four broad
categories.

“The categories are Switching and Processing, Mobile Money
Operations (MNOs), Payment Service Solutions (PSSs) and Regulatory
Sandbox.”

Jimoh stated that only MMOs were permitted to hold customer
funds, adding that companies with licenses within any of the other
categories were not permitted to hold customer funds.

He said that companies seeking to combine activities under the
switching and MMO categories were only permitted to operate under a
holden company structure with subsidiaries clearly delineated.

Jimoh explained that payments system companies in the PSS
category may hold any of the PSSP, PTSP, and Super Agent licence or
a combination of the licences thereof.

“All payment service providers and stakeholders in the payments
system are required to ensure strict compliance with these
requirements and all other payment system regulations,” he
said.

He said that collaboration between licensed payment companies,
banks and other financial institutions in respect of products and
services are subject to CBN’s approvals.

Mobile Money Operators (MMOs) are to maintain a minimum of N2
billion capital base, the Central Bank of Nigeria (CBN) has
directed in a circular signed by its Director, Payments System
Management Department, Musa Jimoh.

They have also been authorised by the apex bank to hold
customers’ funds under its new licencing framework.

According to the circular, the new framework offers clarity for
new and existing market participants.

Jimoh explained that under the new licensing regime, e-money
issuing, wallet creation, pool account management and other
activities are permissible under super agents.

The CBN director said the new policy aligns with CBN’s
commitment to promote a strong and credible payment system.

He said: “Given the significant evolution and innovation in the
Nigerian payment system, all payment service providers and
stakeholders are invited to note that payments system licensing has
been streamlined according to permissible activities in four broad
categories.

“The categories are Switching and Processing, Mobile Money
Operations (MNOs), Payment Service Solutions (PSSs) and Regulatory
Sandbox.”

Jimoh stated that only MMOs were permitted to hold customer
funds, adding that companies with licenses within any of the other
categories were not permitted to hold customer funds.

He said that companies seeking to combine activities under the
switching and MMO categories were only permitted to operate under a
holden company structure with subsidiaries clearly delineated.

Jimoh explained that payments system companies in the PSS
category may hold any of the PSSP, PTSP, and Super Agent licence or
a combination of the licences thereof.

“All payment service providers and stakeholders in the payments
system are required to ensure strict compliance with these
requirements and all other payment system regulations,” he
said.

He said that collaboration between licensed payment companies,
banks and other financial institutions in respect of products and
services are subject to CBN’s approvals.