MTN Finally Gets CBN Approval for Momo PSB

Nume Ekeghe

Following the approval in principle granted its mobile money arm last year November; MTN Nigeria has gotten a final approval for the commencement of operation of Momo Payment Service Bank, signifying the telecommunications company’s stride into the banking industry.

In a notice to the investing public through the Nigeria Exchange Group, dated April 11, 2022, MTN said it would be announcing the commencement date for its PSB in accordance with regulatory guidelines. 

The notice to investors read: “We refer to our notification issued on 5 November 2021 in which we communicated receipt of the approval in principle from the Central Bank of Nigeria (CBN) for Momo Payment Service Bank Limited (Momo PSB). 

“MTN Nigeria Communications Plc (MTN Nigeria) announces the receipt of a letter dated 8 April 2022 from the CBN addressed to Momo PSB conveying final approval to commence operations. The date of commencement will be communicated to the CBN in accordance with its requirements. 

“MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and we are excited at this opportunity to support its fulfillment.”

In November 2021, both MTN and Airtel were granted approval in principle and with this the number of PSBs in the country will rise to five from the current number of three.

PSB was introduced by the CBN in 2019 as a measure to increase financial inclusion in the country particularly in rural areas. It had granted licenses to Hope PSB, 9PSB and Moneymaster PSB.