Two major telecommunications firms in Nigeria, MTN Nigeria and Airtel Africa, have been granted approval in principle (AIP) for payment service bank (PSB) licenses.

MTN’s MoMo Payment Service Bank Limited and Airtel’s SMARTCASH Payment Service Bank Limited (Smartcash) were granted approval in principle.

The telcos stated that the Central Bank of Nigeria (CBN) granted the approvals on Thursday November 4.

Uto Ukpanah, Company Secretary of MTN Nigeria, in a notice to the Nigerian Exchange Group on Friday, stated that: “MTN Nigeria as a promoter, received an Approval in Principle (AIP) dated 4 November 4, 2021 from the CBN for a MTN’s licence application for the proposed MoMo Payment Service Bank Limited.

“This is the first step in the process towards a final approval, subject to the fulfilment 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 judgement in that regard.

“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 fulfilment.

“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.”

Also, Simon O’Hara, Group Company Secretary of Airtel Africa, said: “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that its subsidiary SMARTCASH Payment Service Bank Limited (Smartcash) has been granted approval in principle to operate a payment service bank business in Nigeria.

“Final approval is subject to the Group satisfying certain standard conditions within six months.”

Speaking on the approval, Segun Ogunsanya, CEO of Airtel Africa, said: “I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria.

“We will now work closely with the Central Bank to meet all its conditions to receive the operating licence and commence operations.

“The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services.

“I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.”

PSBs are expected to leverage on mobile and digital channels to enhance financial inclusion and stimulate economic activities at the grassroots through the provision of financial services.

The minimum capital requirement for PSBs is N5 billion with non-refundable application fee of N500,000, non-refundable licensing fee of N2 million and change of name fee of N1,000,000.