Nigeria’s leader in telecommunications, MTN, has received final approval to operate as a Mobile Money Payment Service Bank (Momo PSB).
The approval was granted by the Central Bank of Nigeria (CBN), according to a statement by Nigerian MTN secretary Uro Ukpanah on Monday.
“MTN Nigeria Communications PIc (MTN Nigeria) announces receipt of a letter dated April 8, 2022 from CBN to Momo PSB granting final approval to commence operations,” it reads in part.
“The start date will be communicated to the CBN according to its requirements.
“MTN Nigeria reaffirms its commitment to the financial inclusion agenda of CBN and the Federal Republic of Nigeria and we welcome this opportunity to support its fulfillment.”
PSB operators provide financial services through digital means to low-income earners and those who do not use banks or banking institutions for transactions.
They are expected to operate in rural areas where Nigerians are unbanked and should have at least 50 percent physical access points in rural areas.
Upon CBN approval, MTN Nigeria will join forces with Moneymaster PSB, a subsidiary of Glo, and 9PSB, a subsidiary of 9mobile, to enter the fintech space.
Meanwhile, Ghana MobileMoney Limited, the mobile finance subsidiary of MTN Ghana, is the overwhelming leader, recording a whopping 1.085 billion transactions out of 1.27 billion in Q3 2021.
As in Nigeria, the mobile phone companies have also been separated from the main telecommunications service with different management. While the telecom operator reports to the National Communications Authority (NCA), the mobile money subsidiary reports to the Bank of Ghana as the regulator.
MTN Ghana as a company has been declared a significant market power by the NCA. But the Bank of Ghana has not yet selected MTN MobileMoney for SMP regulations.
By: Sheila Satori Mensa