Nigeria’s financial landscape has been undergoing a quiet but significant transformation, and at the heart of it are Payment Service Banks (PSBs).
Designed to deepen financial inclusion, PSBs are bridging the gap between traditional banks and the millions of Nigerians who remain outside the formal financial system.
Payment Service Banks are a special category of banks licensed by the Central Bank of Nigeria (CBN) to offer basic financial services, especially to people in rural areas and the unbanked population.
They are not full-fledged commercial banks, but they play a critical role in making financial services accessible to underserved communities.
The CBN introduced PSBs in 2018 as part of its broader financial inclusion strategy aimed at bringing 95% of Nigerians into the formal financial system.
The idea was simple: if mobile network operators, fintechs, and other non-traditional players could leverage their wide reach and technology, they could deliver banking services faster and more efficiently than conventional banks in remote areas.
Currently, licensed PSBs in Nigeria include MTN’s MoMo Payment Service Bank, Airtel’s SmartCash PSB, 9PSB (9mobile’s subsidiary), Hope PSBank, and Globacom’s MoneyMaster PSB.
Interestingly, out of the five licensed PSBs, four are owned by mobile network operators.
By regulation, PSBs are allowed to perform a limited range of banking and payment-related services. Their focus is not on corporate banking or complex lending, but on simple, high-impact financial transactions that can improve everyday lives.
Here are the 5 individuals piloting the affairs of these PSBs to bridge the digital inclusion gap in Nigeria.
Phrase Lubega is the current Chief Executive Officer of MoMo Payment Service Bank (MoMo PSB), a subsidiary of MTN Nigeria Communications Plc. A digital transformation leader with over two decades of experience, Lubega oversees the operations of Nigeria’s largest Payment Service Bank by customer base and transaction volume.
Under his leadership, MoMo PSB has continued to consolidate its dominant position in Nigeria’s mobile money ecosystem, leveraging MTN’s vast infrastructure and agent network of over 280,000 active MoMo Agents nationwide.
According to MTN’s latest financial results, MoMo’s active wallets had increased to 2.9 million as of September 2025.
The bank’s user base has surpassed 30 million registered wallets, handling billions of naira in peer-to-peer and merchant payments monthly.
Before joining MoMo PSB, Lubega held senior roles at MTN Group Fintech, where he played a key role in developing and scaling MTN’s mobile money operations across Africa. His expertise spans fintech strategy, ecosystem development, and digital inclusion.
