Two telecommunication companies, MTN and Airtel, have been given a license to operate as Payment Service Bank (PSB) by the Central Bank of Nigeria (CBN).
The two telecommunication giants disclosed this in a statement on Friday.
The two companies will be able to provide financial services through digital means to low-income earners and people that do not use banks or banking institutions for transactions.
According to the statements, Airtel will operate PSB via its Smartcash Payment Service Bank Limited while MoMo Payment Service Bank Limited will be MTN’s PSB. The essence is to bring more people into the financial inclusion space.
Goldennationblog.com gathered that about 36 percent of the adult population, representing 38 million citizens, do not have access to financial services in Nigeria.
Segun Ogunsanya, CEO, Airtel Africa, said, “I am very pleased that Smartcash has been approved in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating license and commence operations.
“The final operating license will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services. I am looking forward to working closely with the Government, the Central Bank, and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.”
Uto Ukpanah, company secretary at MTN Nigeria, said, MTN Nigeria remained optimistic that it would eventually get the PSB license.
“This is the first step in a long process that would lead to eventual approval. In other words, MTN Nigeria would be required to fulfill several conditions, even as ‘the decision to issue a final approval is firmly within the regulatory purview of the CBN’,” the statement reads.
“MTN Nigeria expressed optimism that it would eventually get the PSB license, and reaffirmed its commitment to the financial inclusion agenda of the CBN in Nigeria.”
According to reports gathered, the two firms would be required to fulfill some conditions before CBN will grant an operating license.
Currently, three PSBs are operating in the country. They are Hope PSB LImited, a subsidiary of Unified Payments, Moneymaster PSB, subsidiary of Glo, and 9PSB, a subsidiary of 9mobile.
They got their licenses in 2020 from the CBN.
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