Guidelines For Licensing And Regulation Of Payment Service Banks In Nigeria

The Central Bank of Nigeria (CBN) Guidelines For Licensing and Regulation of Payment Service Banks in Nigeria.

The Central Bank of Nigeria (CBN), in furtherance of its mandate to promote a sound financial system in Nigeria and the need to enhance access to financial services for low income earners and unbanked segments of the society, continues to be innovativein deepening the financial services sector. 

The National Financial Inclusion Strategy (NFIS) seeks to ensure that over 80 per cent of the bankable adults in Nigeria have access to financial services by 2020. The CBNin collaboration with stakeholders launched the NFIS on 23rd October, 2012 with a viewto reducing the exclusion rate to 20 per cent by 2020.

The guidelines allow for Payment Service Banks to perform the following activities:

  • Accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme;
  • Carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria;
  • Sale of foreign currencies realized from inbound cross-border personal remittances to authorized foreign exchange dealers;
  • Issue debit and pre-paid cards on its name;
  • Operate electronic wallet;
  • Render financial advisory services;
  • Invest in FGN and CBN securities; and
  • Carry out such other activities as may be prescribed by the CBN from time to time.

Eligible entities include the following:

  • Banking Agents
  • Telecommunications companies (Telcos), through subsidiaries
  • Retail chains (supermarkets, downstream petroleum marketing companies)
  • Mobile Money Operators
  • Financial technology companies (Fintech)
  • Financial Holding Companies
  • Entities approved from time to time by the CBN

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Wednesday, October 31, 2018

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