The Central Bank of Nigeria has released new License Requirements for the Payments System in Nigeria – Switching and Processing Licence, Mobile Money Operator Licence, Payment Solution Services (PSS), Payment Terminal Service Provider (PTSP) Licence, Payment Solution Service Provider (PSSP), Super Agent Licence.
Any corporate entity registered by the Corporate Affairs Commission (CAC), with Memorandum and Article of Association (MEMART) is eligible for any of the licences according to the apex bank.
Application and licence fees for any of the licences:
- 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.
- Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.
Licence Validity according to the CBN: “Approval-in-Principle for six (6) Months, Commercial licence validity is as determined by the Bank renewable upon satisfactory performance of operations. Others, as advised from time to time.”
Capital requirements for the Licences:
Switching and Processing Licence or Mobile Money Operator Licence
Capital Requirement:
- N2,000,000,000.00 (shareholders’ funds unimpaired by losses)
- Preceding 3-years audited financial statements of the company (If applicable)
- 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
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Payment Solution Services (PSS)
Capital Requirement
- N250,000,000.00 (shareholders’ funds unimpaired by losses)
- Preceding 3-years audited financial statements of the company (If applicable)
- 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
- Deposit for escrow must be in full (one lump sum)
- It must be made in the name of the company applying for licence (not an individual or related company)
- Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.
Payment Terminal Service Provider (PTSP) Licence or Payment Solution Service Provider (PSSP) Licence
Capital requirement:
- N100,000,000.00 (shareholders’ funds unimpaired by losses)
- Preceding 3-years audited financial statements of the company (If applicable)
- Escrow of refundable N100m into CBN PSP Share Capital Deposit Account No. 1000014009
- Deposit for escrow must be in full (one lump sum)
- It must be made in the name of the company applying for licence (not an individual or related company)
- Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.
Super Agent Linence
Capital Requirement
- N50,000,000.00 (shareholders’ funds unimpaired by losses)
- Preceding 3-years audited financial statements of the company (If applicable)
- Escrow of refundable N50m into CBN PSP Share Capital Deposit Account No. 1000014009
- Deposit for escrow must be in full (one lump sum)
- It must be made in the name of the company applying for licence (not an individual or related company)
- Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.
For more details on documents requirement see full document.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
