MTN Nigeria Monday revealed it has been granted license to operate as Momo Payment Service Bank Limited (Momo PSB) by the Central Bank of Nigeria (CBN).
In a statement signed by Uro Ukpanah, the Company Secretary reads in part, “MTN Nigeria Communications PIc (MTN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations.”
However, the statement failed to announce the date of commencement.
In 2021, the CBN granted approval in principle to MTN and Airtel to operate a payment service bank (PSB) across the country, aimed at further driving financial inclusion in Nigeria.
The approval in principle for both telecoms operators came two years after CBN granted the same category of licence to 9mobile, Globacom and another operator.
Since 2012, an often-stated goal of the CBN has been to deepen financial inclusion in the country.
A significant reason for the optimism shown is the potential of telcos to fast-track the CBN’s financial inclusion goal. This is mainly due to their comprehensive coverage of the country, especially in rural areas that house most of the unbanked population.
With the infrastructural cost of setting up branches and security, banks are not opening branches in new locations and, in some cases, are shutting down operations.