The Central Bank of Nigeria has approved new licence categorisations for payments system.
This was disclosed in a circular, ‘New Licence Categorisation for Nigerian Payments Service Providers,’ signed by CBN’s Director of Payments System Management Department, Musa Jimoh.
According to CBN, the new framework offers clarity for new and existing market participants.
It said, “Payments system licensing has been streamlined according to permissible activities in four broad categories.
“The categories are Switching and Processing, Mobile Money Operations, Payment Service Solutions and Regulatory Sandbox.”
The apex bank stated that only MMOs were permitted to hold customer funds, adding that companies with licences within any of the other categories are not permitted to hold customer funds.
But clarified that companies seeking to combine activities under the switching and MMO categories were only permitted to operate under a holden company structure with subsidiaries clearly delineated.
“Payments system companies in the PSS category may hold any of the PSSP, PTSP, and Super Agent licence or a combination of the licences thereof.
“All payment service providers and stakeholders in the payments system are required to ensure strict compliance with these requirements and all other payment system regulations,” CBN added.
