CBN updated licence requirements for mobile money operators

The Central Bank of Nigeria, CBN has a laid out rule and licence requirements for mobile money operators. It covers areas like:

Eligibility
Capital requirement
Contact
Document requirements
Application and licence fees
Licence Validity

All payments system on the CBN list are available on Approved New Licence Categorization Requirements.

Full licence requirements for mobile money operators by the CBN

Eligibility

Any corporate entity registered by the Corporate Affairs Commission (CAC), with Memorandum and Article of Association (MEMART).

Capital requirement:

N2,000,000,000.00 (shareholders’ funds unimpaired by losses)
Preceding 3-years audited financial statements of the company (If applicable)
Escrow of refundable N2bn into CBN PSP Share Capital Deposit Account No. 1000014009
a) Deposit for escrow must be in full (one lump sum)
b) It must be made in the name of the company applying for a licence (not an individual or related company)
c) Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.

Contact:

All written application should be addressed to the Director, Payments System Management Department, Central Bank of Nigeria, Abuja, accompanied by evidence of payments of application fee and other documentary requirements.

Document Requirements

Certificate of Incorporation of the company
Memorandum & Articles of Association (Note: the object clause(s) must be RESTRICTED to relevant payments system activities permitted by the Bank)
Form CAC 2A (Return on Allotment of shares)
Form CAC 7A (Particulars of Directors)
Tax Clearance Certificate for three (3) years of the company (if applicable) and Taxpayer Identification Number (TIN) of company
The company’s profile; detailing the current type of business operation, products and services
Structure of holding company or parent company (if applicable)
Details of ownership: private/public; ultimate parent; any significant changes in ownership in the last two years.
Total number of employees.
Organogram.
Functional physical address, contact e-mails from company’s domain and telephone numbers.
Board Structure – showing at a minimum Chairman, CEO/MD, and at least, one (1) Independent NonExecutive Director and other Director(s).
Bank Verification Number (BVN), Curricula Vitae (CVs), proof of government-issued identity (National
Identification Number (NIN), International Passport, Driver’s Licence, Voter’s Card) of Board and top management team.
Details of current line of business (if applicable

Business Plan to include: Nature of the business, features of the scheme, security features that will be put in place, five years financial projections, proposed schedule of charges, profit-sharing arrangement, diagrammatic illustration of transaction flows.

Information Technology policy of the company including:

a. Privacy Policy
b. Information Ownership/Disclosure/Loss Policy
c. Backup and Restore Policy
d. Network Security Policy
e. Encryption Policy
f. Confidential Data Policy
g. Password Policy
h. Third-Party Connection Policy
i. Incidence Response Policy
j. Physical Security Policy

Enterprise Risk Management Framework
Dispute Resolution Framework
Contingency and Disaster Recovery Plan (Business Continuity Plan)

Duly executed agreements (drafts, as applicable) with
the following:
a. Technical partners
b. Participating banks
c. Merchants
d. Telcos
e. Any other relevant party

Project Deployment Plan (time, location, operation,
etc.)

Application and Licencing fees

Non-refundable application fee of N100,000.00 (One hundred thousand naira).
Licensing fee of N1,000,000.00 to be paid before the issuance of the final licence, if successful.

Licence validity

Approval-in-Principle for six (6) Months
Commercial licence validity is as determined by the Bank renewable upon satisfactory performance of operations.
Others, as advised from time to time.

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