CBN Grants Approval to MTN, Glo, Airtel, Other Payment Service Banks to Sell Dollars

The Central bank of Nigeria has approved dollar sales by Payment service banks(PSB), Nigerian three telecommunication giants MTN, Airtel Glo, have licences to operate PSB CBN’s decision to allow PSBs to sell dollars will go a long way in reducing the difficulties in getting dollars, especially for online transaction.

CBN, in its framework, noted that PSBs can sell foreign currencies (forex) realised from inbound cross-border personal (remittances) to licenced foreign exchange dealers. CBN, however stressed that the PSBs are only to offer smaller-scale banking operations and the absence of credit risk and foreign exchange operations.

The CBN framework also authorised the PSBs to accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme; carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria. The framework says the operators are expected to leverage on technology to provide services that would be easily accessed by the unbanked population and those who are in hard-to- reach areas of the country.

The framework also showed that CBN wants the PSBs to operate mostly in rural areas and unbanked locations targeting financially excluded persons, with not less than 25 per cent financial service touch points in rural areas defined by the CBN from time to time.

CBN framework reiterated that the key objective of setting up PSBs is to enhance financial inclusion by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other financially excluded entities through high-volume low-value transactions in a secured technology-driven environment.