The Central Bank of Nigeria has issued guidelines for licensing and regulation of payments service holding companies in the country.
The CBN disclosed this in a circular dated August 3, 2021. This is coming after the apex bank directed that companies that desired to provide mobile money services should set up a PSHC structure to clearly delineate the activities of the subsidiaries.
According to the CBN, the guidelines cover payment activities of mobile money operations, switching and processing, payment solution services and any other activity as may be approved by the CBN.
The guidelines also provide clarity on the definition and structure of a PSHC, licensing requirements, ownership and control, corporate governance, permissible and non-permissible activities, as well as supervision.
It, however, prohibited PSHCs from undertaking certain activities such as the establishment, divestment and closure of subsidiaries, without the prior written approval of the CBN.