The Central Bank of Nigeria (CBN) has asked Mobile Money Operators (MMOs) to maintain a minimum of N2 billion capital base.
The CBN disclosed this in a statement signed and released by the director, Payments System Management Department, Musa Jimoh.
The central bank in the statement also stated that it has authorised them to hold customers’ funds under its new licencing framework.
The statement read in part that the new framework offers clarity for new and existing market participants.
Jimoh said under the new licensing regime, e-money issuing, wallet creation, pool account management and other activities are permissible under super agents.
He explained further that the new policy aligns with CBN’s commitment to promote a strong and credible payment system.
According to him, “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 noted 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.
CBN director 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.
He said: “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.”
Jimoh added that collaboration between licensed payment companies, banks, and other financial institutions in respect of products and services are subject to CBN’s approvals.