Central Bank of Nigeria (CBN) Revokes Mobile Money Licence of Cellulant Nigeria

The Central Bank of Nigeria (CBN) has revoked the mobile money licence of Cellulant Nigeria, a subsidiary of Cellulant Corporation, one of Africa’s pioneering fintech companies. The revocation, effective from December 6, 2023, marks Cellulant’s exit from the consumer-facing mobile money market as it shifts focus to providing payment services to businesses.

According to an email conversation with TechCabal, Cellulant revealed that the decision to exit the mobile money space was made as early as 2021. The company procured a Payment Solution Service Provider (PSSP) licence from the CBN, which is now operational, to facilitate its transition. Importantly, Cellulant clarified that the licence revocation was not due to any infractions or breaches but was a result of the company’s voluntary decision to discontinue operating the mobile money licence.

This move by Cellulant comes amidst internal challenges, including a leadership tussle and operational restructuring. The company has faced difficulties in stabilizing its operations and raising new funding, leading to a reduction in headcount by 20% in August 2023 and the resignation of its CEO in December 2023.

The revocation of Cellulant’s mobile money licence echoes recent actions by the CBN to tighten regulatory oversight in the financial sector. Earlier this month, the CBN revoked the licences of 4,173 Bureaux De Change (BDC) operators for failing to comply with regulatory guidelines. The regulatory measures aim to enhance compliance with anti-money laundering and counter-terrorism financing regulations while promoting stability and integrity in the financial system.

As Nigeria’s financial landscape undergoes regulatory reforms and fintech companies navigate evolving market dynamics, the implications of Cellulant’s licence revocation underscore the importance of regulatory compliance and strategic adaptation in the rapidly evolving fintech ecosystem.