BY BUSAYO SAMUEL
Leading telecommunications companies, MTN Nigeria and Airtel Africa, have received the nod of the Central Bank of Nigeria to operate a service bank business in Nigeria.
Both companies whose shares are listed on the Nigerian Exchange Limited will operate the business through their subsidiaries MoMo Payment Service Bank Limited and Smartcash Payment Service Bank Limited, respectively.
Meanwhile the companies said the approval is in principles. Final approval is subject to their satisfying certain standard conditions within six months.
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa.
MTN says the move is in affirmation of its towards the financial inclusion agenda of the CBN.
Segun Ogunsanya, CEO, 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.”
