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CBN revokes seven payment service providers’ licences

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CBN revokes seven payment service providers’ licences – The Central Bank of Nigeria (CBN) has revoked the licences of seven payment service providers and one switch service provider.

In an Official Gazette of the Federal Government released yesterday, the apex bank said the operators were unable to meet up with their statutory obligations as specified in the Banks and Other Financial Institutions Act (BOFIA) CAP B3, Laws of the Federal Republic of Nigeria, 2004.

The affected payment service providers (PSPs) include Easifuel Limited, Transaction Processing System (TPS), Grand Towers Limited, Paymaster Limited, E-Revenue Gateway Limited, Eartholeum Network Limited and Globasure Limited. The 3Line Card Management Limited also lost its switch license.

The PSPs and Switch operators were established by the CBN to carry out specific services which include Point of Sale (POS) terminal deployment and services, Pension Transitional Arrangement Directorate (PTAD), Merchant/agent training and support, switching, card processing, transactions clearing and settlement agents.

According to modified guidelines of PSPs operations,  released by CBN two weeks ago, the minimum capital requirements to operate in Payment Service Providing and Switching/Processing capacities are N100 million and N2 billion.

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Announcing the licences withdrawal, CBN Governor, Godwin Emefiele said: “I, Godwin Ifeanyi Emefiele, Governor of the Central Bank of Nigeria, in exercise of the powers conferred on the Central Bank of Nigeria under Sections 60 and 62 of BOFIA, CAP B3, Laws of the Federation of Nigeria, 2004 hereby revoke the licences of the payment service providers listed in Schedule I and the switch licence of payment services providers listed in Schedule II attached hereto.”

The apex bank has continually renewed its drive to strengthen and ensure a credible payment system in Nigeria amid the new wave of Fintechs in the country offering varying but often nuanced services.

The affected institutions will for a period of six months consecutively, cease to carry on in Nigeria, the type of business for which their licences were granted.

The affected institutions are categorised into two schedules, with the first comprising of the seven PSPs whose licenses were revoked, while the other comprised of a PSP whose Switch licence was revoked.

According to the CBN, the affected firms are not barred from conducting businesses in Nigeria, however, their licences to operate in their previous capacities as PSPs and switch operator is what is revoked for the time being.

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