MTN, has received final approval from Nigerian regulators to run a payment service bank. MTN Group had first announced in November 2021 its move towards getting final approval of the license, saying it was subject to the fulfillment of certain conditions as stipulated by the CBN. As it is, with the PSB licence, MTN Nigeria will offer a wider range of mobile financial services beyond the traditional person-to-person (P2P) MoMo mobile money transfers such as lending and bill payments.
MTN Nigeria affirms its commitment towards the financial inclusion agenda of the CBN and the Federal Republic of Nigeria and we are excited about this opportunity to support its fulfillment. This is part of MTN’s strategy outlined in June, by the Chief Executive Officer, Ralph Mupita, saying the structural separation of the fintech and fibre units was key to the group’s Ambition 2025 Plan. The granting of a banking licence in MTN’s most lucrative market is set to bolster the group’s operations in Nigeria. The country remains MTN’s biggest market and contributor of the lion’s share to the group’s revenue. Similarly, fintech revenue surged by 57.3 per cent, due to sustained growth in the use of its Xtratime product and broader fintech services. In the period, MoMo transaction volume rose by 167 per cent to 137.5 million from an active user base of 9.4 million, up 102 per cent.