MTN Nigeria Plc will soon begin to compete with traditional banks to pay customers following the final approval from the Central Bank of Nigeria (CBN) for it to operate as Momo Payment Service Bank Limited (Momo PSB).
Uro Ukpanah, the Company Secretary of MTN disclosed Monday that the approval was geared towards the commencement of full operation.
According to the statement titled, “The Central Bank of Nigeria grants final approval for Momo Payment Service Bank Limited to commence operation”, MTN said the approval affirmed its commitment towards the financial inclusion agenda of the CBN.
MTN Nigeria, alongside its main rival, Airtel Africa Plc in November 2021 received an “Approval in Principle” (AIP) from the Central Bank of Nigeria to operate as Payment Service Banks
Announcing receipt of the final approval, the telecom firm said, “MTN Nigeria Communications PIc (MN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.”
The yellow brand however, failed to state the actual commencement date, noting that it would be communicated to the apex bank in due course.
“The date of commencement will be communicated to the CBN in accordance with its requirements.
“MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and we are excited at this opportunity to support its fulfilment,” MTN added.
Recall that in 2020, the CBN released guidelines stipulating the operational framework of the PSBs, stating that the key objective of issuing PSB licenses is to boost financial inclusion, especially in rural areas and facilitate transactions.
According to the apex bank, the issuance of PSB licenses “is 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.”
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