Following the New Licence Categorisations within the Nigerian Payments System (NPS), The Central Bank of Nigeria (CBN) on 3rd August 2021 released a circular on the new guidelines for the licensing and regulation of Payments Service Holding Companies in Nigeria (the “Guidelines”).
- What does the CBN hope to achieve with the Guidelines?
The Guidelines mandate companies that wish to operate more than one licence category to set up a Payments Service Holding Company (“PSHC”) and distinctly separate each of its subsidiaries.
According to the CBN, this will better aid the regulator in managing potential and risks and achieve adequate regulatory oversight of the companies operating within the Group structure.
- What kind of companies do the Guidelines apply to?
The Guidelines are directly applicable to companies in the regulated payment sectors, and more specifically; Mobile Money Operations, Switching and Processing, Payment Solution Services and any other activity as may be approved by the CBN.