CBN Increases Capital Base For Payment Service Firms To N250m From N100m

Nigeria's External Reserves Reduces by $427m In One Month- CBN
Nigeria's External Reserves Reduces by $427m In One Month- CBN

The Central Bank of Nigeria (CBN) on Monday, May 24th, 2021 published a new license requirements for the payments system.

The approved new licence categorization requirements focused on switching and processing licence, mobile money operator licence, payment solution services, payment terminal service provider (PTSP) licence, Payment Solution Service Provider (PSSP) and Super agent licence.

The CBN stated that to have a Payment Terminal Service Provider licence, a firm was required to have N100m shareholders’ funds unimpaired by losses.

It retained super agent’s licence at N50m; Switching and Processing firm’s licence at N2bn; Mobile Money Operator’s licence at N2bn; Payment Solution Services at N250m and Payment Solution Service Provider at N100m.

The CBN specified a non-refundable application fee of N100,000 via the licensing fees.

According to the capital requirements, the payment firms must have an escrow of refundable N2bn into the CBN PSP share capital deposit account.

It stated that the deposit for escrow must be in full (one lump sum) and must be made in the name of the company applying for a licence (not an individual or related company).

The CBN stated that escrowed funds were invested in treasury bills, subject to the availability of treasury instruments, which would be refunded accordingly.