CBN Approves 17 Businesses as Mobile Money Operators in Nigeria, Bans Banks from Operating PoS

Nigerians have started looking for alternatives as a result of the recent problems experienced by bank clients and their inability to use mobile applications and other digital touchpoints, as fintech firms have taken over the ecosystem and delivered better experiences.

Several Nigerians have found relief from transaction failures that were unprecedented thanks to these regulated mobile operators.

Customers might receive daily awards and 0% transfer fees from mobile money providers as incentives.

Many users of these platforms are concerned about their legality and want to know if they have a licence or authorization to operate in Nigeria.

The apex bank has created a list of authorised participants in the financial ecosystem as a result of the concerns.

The change occurs after the CBN forbade bank representatives from providing PoS services.

CBN publishes instructions for PoS operations

In order to reduce risks in the financial industry, the CBN released the regulatory framework for agent banking operations.

The policy was disclosed in a circular signed by Musa I. Jimoh, the director of the Payments System Management Department, and titled Exposure Draft of the Regulatory Framework for Agent Banking in Nigeria.

The CBN devoted Section 8.3 of the 31-page document to listing forbidden actions for agents.

One of the main limitations in the guideline, according to Vanguard, is that agents cannot conduct cash-in and cash-out transactions using the purchase option on PoS terminals.

Agents have also been cautioned by the CBN to avoid transactions for which a receipt or acknowledgment cannot be produced. In addition to the limitations listed above, the circular forbids agents from carrying out foreign currency transactions. Agent banking is a service for financial inclusion that strives to increase the accessibility of retail banking to all facets of the population, particularly those who live in remote locations.

First Monie, EcoBank Express, UBA Moni, Zenith Mobile Money, and other companies are among the service providers.

The CBN has noted that the agent banking initiative has caused financial service agents to proliferate throughout Nigeria.

Per reports Agents are now used in a sizable and expanding share of financial transactions.

authorised providers of mobile money

Limited by Abeg Technologies

Chams Mobile Ltd.

International Limited by eTranzact

The Fortis Mobile Money Company

Electronic Transfer Of Money (FETS)

Hedonmark Management Services Limited, Limited

Limited by Pagatech

Palmpay Ltd.

Projects Parkway Limited

Limited by Teasy International Corporation

Digital Services by Nanonow Ltd

VTNetwork, Inc.

MTS Xpress Limited

Kongapay Technologies Ltd.

ICT Visual Limited