CBN releases new guidlines for mobile money operators, other payment firms

Payment System operators have received a new license requirements to operate in Nigeria.

The Central Bank of Nigeria (CBN) set new eligibility criteria which includes capital base and stricture.

The operators were separated into four categories: Mobile Money Operator (MMO), Payment Terminal Service Provider (PTSP), Payment Solutions Service Provider (PSSP), Super Agent Licence, Switch and Processing Licence, as well as Payment Solution Services (PSS).

In a circular published on its website on May 24, operators were given new capital and documentary requirements, with the CBN approving new licence fee and validity of licence.

It was gathered that new operators will need N2 billion to set up a mobile money operation, and will have to provide N2 billion (refundable) to the central bank, while individuals with interest in payment firms will cough up N2 billion.

Below are the Criteria;

Mobile Money Operator (MMO)

Capital requirements for Mobile Money Operators.

1. N2,000,000,000.00 (shareholders’ funds unimpaired by losses)

2. Preceding 3-years audited financial statements of the company (If applicable)

3. Escrow of refundable N2bn into CBN PSP Share Capital Deposit Account No. 1000014009

a) Deposit for escrow must be in full (one lump sum)

b) It must be made in the name of the company applying for licence (not an individual or related company)

c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.

Application and Licensing Fees

1. Non-refundable application fee of N100,000.00 (One hundred thousand naira), payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.

2. Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.

Payment Terminal Service Provider PTSP License

Capital requirements to have a PTSP licence.

1. N100,000,000.00 (shareholders’ funds unimpaired by losses)

2. Preceding 3-years audited financial statements of the company (If applicable)

3. Escrow of refundable N100m into CBN PSP Share Capital Deposit Account No. 1000014009

a) Deposit for escrow must be in full (one lump sum)

b) It must be made in the name of the company applying for licence (not an individual or related company)

c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be
refunded accordingly.

Application and Licensing Fee

1. Non-refundable application fee of N100,000.00 (One hundred thousand naira) payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.

2. Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.

Payment Solutions Service Providers (PSSP)

Capital requirements to be a PSSP.

1. N100,000,000.00 (shareholders’ funds unimpaired by losses)

2. Preceding 3-years audited financial statements of the company (If applicable)

3. Escrow of refundable N100m into CBN PSP Share Capital Deposit Account No. 1000014009

a) Deposit for escrow must be in full (one lump sum)

b) It must be made in the name of the company applying for licence (not an individual or related company)

c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.

Application and Licensing Fee

1. Non-refundable application fee of N100,000.00 (One hundred thousand naira) payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.

2. Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.

Super Agent License

These are the capital requirements to become a Super Agent Licence

1. N50,000,000.00 (shareholders’ funds unimpaired by losses)

2. Preceding 3-years audited financial statements of the company (If applicable)

3. Escrow of refundable N50m into CBN PSP Share Capital Deposit Account No. 1000014009

a) Deposit for escrow must be in full (one lump sum)

b) It must be made in the name of the company applying for licence (not an individual or related company)

c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.

Application and Licensing Fee

1. Non-refundable application fee of N100,000.00 (One hundred thousand naira) payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.

2. Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful

Payment Solution Services (PSS)

Capital requirements for PSS.

1. N250,000,000.00 (shareholders’ funds unimpaired by losses)

2. Preceding 3-years audited financial statements of the company (If applicable)

3. Escrow of refundable N250m (for entities applying for the three (3) licences at a time: PSSP – N100m, PTSP – N100m, and Super Agent – N50m) into CBN PSP Share Capital Deposit Account No.
1000014009

Applicants may take up any or all of the above-listed licences (see circular on New Licence Categorisations for Payments Service Providers in the Nigerian Payments System)

a) Deposit for escrow must be in full (one lump sum)

b) It must be made in the name of the company applying for licence (not an individual or related company)

c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.

Application and Licensing Fees

1. Non-refundable application fee of N100,000.00 (One hundred thousand naira) payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.
2. Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.

Switch and Processing Licence

Capital requirements for Switching and Processing Licence.

1. N2,000,000,000.00 (shareholders’ funds unimpaired by losses)
2. Preceding 3-years audited financial statements of the company (If applicable)
3. Escrow of refundable N2bn into CBN PSP Share Capital Deposit Account No. 1000014009
a) Deposit for escrow must be in full (one lump sum)
b) It must be made in the name of the company applying for licence (not an individual or related company)
c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be
refunded accordingly.

Application and License Fees

1. Non-refundable application fee of N100,000.00 (One hundred thousand naira), payable to the CBN via the Licensing Fees for Payment Products Account No. NGN140230089/ABJ.
2. Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.