Nigeria one step closer to mobile money rollout

Mobile phone operators MTN and Airtel have both received partial approval from the Central Bank of Nigeria to operate mobile payments in the country.

This comes three years after the CBN initially said it would allow non-financial companies to apply for mobile banking licences.

“A final approval which is subject to the fulfilment of certain conditions will be issued to the Telcos within six months,” a statement from both operators read.

Under the guidelines, mobile network operators are allowed to provide financial services to millions of unbanked Nigerians. However, they can do so only as Payment Service Banks (PSBs) and through a subsidiary separate from their core operations.

PSBs accept deposits from individuals and small businesses, offer payment and remittance services, and other activities prescribed by the central bank.

This could make a huge difference for Nigeria’s 38 million unbanked adults – about 36% of the total adult population in the country.