Business
CBN grants approval-in-principle to MTN, Airtel to start banking services
The Central Bank of Nigeria (CBN) has given approval-in-principle to two Nigerian telecommunication companies, MTN Nigeria and Airtel, to operate banking services.
In separate letters addressed to the management of the Nigeria Exchange, the telecom companies announced Friday that their subsidiaries have been granted approval-in-principle to operate Payment Service Banks.
The two telcos jointly control 67 percent of telecoms market in Nigeria. While MTN has the dominant hold of 40 percent, Airtel has 27.
MTN said the grant of approval in principle was the first step in the process towards final approval, subject to the fulfilment of certain conditions as stipulated by the CBN.
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“MTN Nigeria Communications Plc, as promoter, received an approval-in-principle dated 4 November 2021, from the CBN, for a licence application for the proposed MoMo Payment Service Bank Limited.
“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,” it said in a statement.
On its part, Airtel said its subsidiary SMARTCASH Payment Service Bank Limited 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,” the company said in a statement.
