TELECOMS operator MTN said yesterday that the Central Bank of Nigeria (CBN) had given it the green light for MoMo Payment Service Bank (PSB)to start operations.
MTN MoMo, a mobile money service, had roughly 56.8 million users for its mobile money service across Africa in 2021.
MTN Nigeria provides telecoms and mobile money services across Nigeria.
The granting of the licence is seen as a catalyst for financial inclusion in Nigeria. Nigeria has a low banking penetration and – according to an EFInA (Enhancing Financial Innovation & Access) report – 36 percent of Nigerian adults were unbanked, with no access to financial services at the end of 2020.
MTN Group said MTN Nigeria, as the promoter of MoMo, had received a letter dated April 8 from the CBN addressed to MoMo conveying approval for it to commence the operations. This followed the approval in principle for MoMo dated November 4, 2021.
The commencement date would be communicated to the CBN in accordance with its requirements, MTN said.
Speaking on the final approval, MTN Group President and chief executive Ralph Mupita said: “We are grateful to the CBN for granting the final approval to commence the operations of MoMo PSB, which is an important milestone for our Ambition 2025 strategy. We are excited about the opportunity for MTN Nigeria to support the CBN and the Federal Republic of Nigeria in fulfilling the agenda of driving financial inclusion in Nigeria.”
MTN said on the release of its quarter one 2022 trading update, on or about May 6, it would provide more details regarding the commencement of operations along with related matters and timelines.
MTN listed its Nigerian business in Lagos two years ago to become the second-largest stock by market capitalisation.
MTN Group, which currently owns 75.6 percent of MTN Nigeria, last month announced it is working on regulatory approvals to reduce its shareholding to 65 percent.- Philippa Larkin