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Airtel gets CBN’s licence to operate mobile banking

The Central Bank of Nigeria (CBN) has granted Airtel Mobile Commerce Nigeria Ltd, a subsidiary of Airtel Africa, a full super-agent licence. The licence, according to the telecommunications company, allows it to create an agency network servicing the customers of licensed Nigerian banks, payment service banks and licensed mobile money operators in Nigeria.

This final approval followed an earlier approval-in-principle given by the apex bank back in November 2021, the telco explained in a notification to Nigerian Exchange Group (NGX). “Further to our announcement of 15 November 2021, Airtel Africa, a leading provider of telecommunications and mobile money services, with presence in 14 countries across Africa, today confirms that the Central Bank of Nigeria (CBN) has awarded its subsidiary, Airtel Mobile Commerce Nigeria Ltd, with a full super agent licence. “The licence allows us to create an agency network that can service the customers of licensed Nigerian banks, payment service banks and licensed mobile money operators in Nigeria,” the statement, signed by its Group Company Secretary, Simon O’Hara, read.

Airtel’s approval to operate a super agent licence is coming some weeks after the apex bank granted MTN Nigeria a final approval to operate a Payment Service Bank (PSB). MTN’s PSB is known as Momo Payment Service Bank Limited (Momo PSB). According to Mondaq, a content aggregator service provider focusing on finance, a super agent is a corporately licensed entity that is empowered to conduct certain banking activities within the community. Super agents and PSBs have one major goal, which involves financial inclusion, especially for the unbanked in Nigeria. Already, 38 million adults were completely financially excluded at the end of 2020, according to figures from Enhancing Financial Innovation & Access, tagged ‘New data from EFInA.‘ “Although financial inclusion has grown in the past decade, Nigeria fell short of the National Financial Inclusion Strategy targets for 2020.

The country had aimed to reach 70 per cent per cent of Nigerians with formal financial services by 2020. The actual figure was 51 per cent. “The overall financial inclusion target was 80 per cent by 2020. EFInA data shows that only 64 per cent of Nigerian adults were financially included by the end of 2020. This means that 36 per cent of Nige-rian adults, or 38 million adults, remain completely financially excluded,” EFInA noted. Experts said the new move by CBN would help to bank the unbanked and stir the necessary competition among financial technology companies (Fin- Techs), banks and PSBs.

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