CBN Grants MTN Nigeria’s MOMO Payment Service Approval in Principle

MTN Nigeria Communications Plc has received Approval In Principle (AIP) from the Central Bank of Nigeria (CBN) for its proposed MOMO Payment Service Bank Limited to operate in Nigeria.

The leading telecommunications company disclosed this on Friday in a statement filed with the Nigerian Exchange Limited. MTN Nigeria received the AIP alongside Airtel Africa on November 4, 2021.

MTN Nigeria said “This is the first step in the process towards a final approval, subject to the fulfillment of certain conditions as stipulated by the CBN. The decision to issue a final approval is firmly within the regulatory purview of the CBN and we respect their right and judgment in that regard.

“MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and continues to explore means whereby it can contribute to its fulfillment.

“While we look forward to the eventual grant of a final PSB licence, we will continue to communicate material information in accordance with regulatory obligations and guidelines.”

Nigeria’s telecommunications operators are looking to expand their offerings by leveraging on their existing customers to compete with fintech platforms that are currently raising billions from global investors.

OPay, one of the leading payments service platforms in Nigeria, recently raised $400 million while others like Flutterwave, Sparkle, Prospa, etc have also raised millions in dollars.

The new licence will allow MTN Nigeria and Airtel Africa access fintech industry’s growing opportunities using their huge operating capital.