MTN Nigeria To Launch Payment Service System

MTN Nigeria has obtained an Approval-in-Principle to fully diversify into financial services through the launch of Momo Payment Service approved by the CBN.

This was announced on the 5th of November 2021 through a press release signed by the Companies Secretary. The statement revealed that the Approval in Principle was received on the 4th of November authorized by the Central Bank of Nigeria

“MTN Nigeria Communications Plc (MTN Nigeria) as promoter, received an Approval in Principle (AIP) dated 4 November 2021 from the Central Bank of Nigeria (CBN) for a license application for the proposed MoMo Payment Service Bank Limited,” the statement said.

“This is the first step in the process towards a final approval, subject to the fulfillment of certain conditions as stipulated by the CBN. The decision to issue a final approval is firmly within the regulatory purview of the CBN, and we respect their right and judgment in that regard.

The Central Bank of Nigeria approved the service after MTN fulfilled all requirement to launch the payment service.

“MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and continues to explore means whereby it can contribute to its fulfillment.

“While we look forward to the eventual grant of a final PSB license, we will continue to communicate material information in accordance with regulatory obligations and guidelines.”

The entrance of MTN into the Nigerian financial services sector will create a competitive business atmosphere  with commercial banks and the Fintech industry, which will in turn improve financial services delivery to the masses.