The Central Bank of Nigeria (CBN) has published new license requirements for Payment System operators in the country.
This disclosure is contained in a document released by the apex bank on Monday, May 24, 2021 stating the eligibility criteria for each licence category in the country. The categories listed include the Payment Terminal Service Provider (PTSP), Payment Solutions Service Provider (PSSP), Payment Solution Services (PSS), Super Agent Licence, Mobile Money Operator (MMO), Switch and Processing Licence.
The new licence requirements make provisions for capitalization of each service category, documentation, application and licence fee and the licence validity.
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What this means: Potential applicants into Nigeria’s lucrative financial services sector will have to grapple with meeting the stringent conditions included in these licensing requirements. For example, potential FinTechs looking to take on large GSM companies as Mobile Money Operators will have to stump up N2 billion in capital requirements and escrow a refundable N2 billion with the Central Bank.
For those looking to take on Paystack, Flutterwave, and Interswitch, they will also need to escrow N2 billion with the central bank.
See the breakdown of requirements.
Payment Terminal Service Provider PTSP License
These are the capital requirements to be 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)
These are the 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
Mobile Money Operator (MMO)
These are the 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.
Switch and Processing Licence
These are the 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.
Payment Solution Services (PSS)
These are the 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.
Good morning, I’m into local daily contributions and Marking of daily contribution cards of traders, students and market women in my locality.
I’m currently creating a website where every of the contributors (customers) can login and see there balance(s). Does that in anyway violets the CBN rules and regulations?
Please reply and guide me.