The central bank of Nigeria has granted the final approval for the establishment of Momo Payment Service Bank (Momo PSB). The date of commencement will be communicated to the CBN in accordance with its requirements.
MTN Nigeria has filed for the permit two years ago after the Nigerian government allowed telecom companies to offer banking services. The approval gives the Nigerian operator the green light to operate virtually all the services offered by conventional commercial banks with the exception of granting credit and processing foreign exchange transactions.
This step will serve the interest of the unbanked population that accounts for around 38 million people in Nigeria and will allow MTN to reach rural and urban regions that lack access to banking services. It will also allow the company to expand its service offerings and scale its fintech business, thereby achieving more meaningful financial inclusion in the country.
MTN Nigeria declared a turnover of N1.7 trillion for full-year 2021, a milestone that analysts believe will consolidate its position as Nigeria’s biggest listed company by revenue.