The Central Bank of Nigeria (CBN) has raised the minimum capital requirement for payment solutions service providers (PSSPs) to N250 million from N100 million.
This is contained in a circular released on Monday streamlined to switching and processing companies; mobile money operations (MMOs), payment solution services (PSSs); payment terminal service providers (PTSPs), PSSPs, and super agent firms.
The new framework also reviewed downward, the capital requirements for licensing of payment solution services (PSSs) to N100 million from N250 million.
Capital requirement for the switching and processing licence remains unchanged at N2 billion, including mobile money operator licence, which was retained at N2 billion.
The capital requirements for the payment terminal service provider (PTSP) licence, which remains at N100 million. The super agent licence was also maintained at N50 million.
According to the circular, requirements for all the listed firms include: “Preceding 3-years audited financial statements of the company (If applicable).
“Deposit for escrow must be in full (one lump sum). It must be made in the name of the company applying for licence (not an individual or related company). Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly. “Non-refundable application fee of N100,000.00 (One hundred thousand naira), payable to the CBN via the Licensing Fees for Payment Products Account.
“Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.”
In December 2020, CBN had approved a new licence categorisation for payment service providers and other financial institutions in Nigeria in a bid to promote a strong and credible payment system.