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CBN Asks Telcos to Pay N5Bn for Mobile Money Licenses

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Central Bank of Nigeria (CBN)  has asked telecommunications companies that intend to deepen financial inclusion in the country through mobile money services to make a minimum capital deposit of N5bn.

 

It was gathered that the apex bank also granted the telcos a provisional approval to apply for a Payment Service Bank licence through a subsidiary company.

 

As contained in the draft guidelines issued by the CBN, an evidence of the payment of N5bn must be provided when applying for an Approval in Principle.

 

The telecoms companies that have indicated interest in driving the financial inclusion plans of the Federal Government are MTN, Airtel, 9mobile, Ntel , and Globacom.

 

Commenting on the guidelines, Mr Gbenga Adebayo, chairman, Association of Telecommunications Companies of Nigeria, said the PSB licence would allow the telcos to facilitate the payment but restrict them from giving loans.

 

In addition, he objected to the minimum deposit of N5bn, saying it was on the high side considering that other mobile money operators were asked to make a payment of N2bn.

 

According to Adebayo, these issues have been addressed in feedback to the apex bank, expressing optimism that the input will be considered.

 

“The justification for the minimum capital deposit is unknown. However, when compared to the capital requirement for National Microfinance Banks and Mobile Money Operators which are currently fixed at N2bn, it is our view that the figure is excessive, particularly bearing in mind that National MFBs have a wider service bouquet,” he said.

 

“We have made our comments on the provisions of the draft document and we are expecting feedback from the CBN.”

 

Meanwhile, Rob Shuter, CEO of MTN Group, this week, announced the plans of the company to apply for a mobile banking licence in Nigeria and launch the service in 2019.

 

Shuter, while addressing a conference in Cape Town, said, “We will be applying for a payment service banking licence in Nigeria in the next month or so, and if all goes according to plan, we will also be launching Mobile Money in Nigeria probably around Q2 of 2019.”

 

Telecoms operators in Africa have recorded tremendous reach with mobile money services on the continent due to their large customer base, existing distribution network and mobile phone penetration.

 

At the centre of the mobile money growth are Safaricom’s M-Pesa, MTN Mobile money, Orange Money, Tigo Pesa, Vodafone Cash and Airtel Money.

 

The five Nigerian network operators recently pledged to deploy over one million airtime agents for mobile money services in the country and leverage their mobile base, integrated identity systems and distribution network to offer financial services to Nigerians.

 

They also gave the assurance that they would reach 90 million people with financial services by 2020.

 

According to them, other stakeholders and the government would be engaged to ensure the telecommunications sector contributes its quota to the 80 per cent total financial inclusion and 70 per cent formal financial inclusion goal by 2020.

 

The telcos promised to drive an awareness programme that would deepen financial literacy across the country, within the next three months.

 

Further sharing their plans, they said in six months, they intend to reach 15 million customers with financial services, and in one year, they would have reached 35 million Nigerians.

 

According to the telcos, 70 million Nigerians will be reached in two years and by the 30th month of commencement of the service, 90 million customers will benefit from the scheme.

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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