Central Bank of Nigeria grants MTN Nigeria’s Momo PSB final approval to commence operations

MTN Nigeria‘s Momo Payment Service Bank (PSB) has been granted final approval to commence full operations. This approval was conveyed in a press release to Nigerian Exchange Limited today 11th of April 2022.

The press release with the title “THE CENTRAL BANK OF NIGERIA GRANTS FINAL APPROVAL FOR MOMO PAYMENT SERVICE BANK LIMITED TO COMMENCE OPERATIONS”, reads;

“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.”

However MTN did not specify the commencement of the PSB operations but stated that “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,” it concludes.

Recall that in November 2021, the Central Bank of Nigeria gave an “Approval In Principle” to MTN to operate Payment Service Bank in the country.

The PSB initiative was introduced by CBN in 2019 as a measure to increase financial inclusion in the country particularly in rural areas. According to the CBN, a major objective for the establishment of PSBs is to leverage mobile and digital platforms to enhance financial inclusion in rural areas, especially the underserved parts. This is expected to be achieved by increasing access to deposit products, payments and remittance services to small/micro businesses and low income households.

Three banks – Hope PSB, Money Master PSB and 9PSB – got their final approvals in August 2020 and they have already started operations.