MTN Nigeria received approval from the Central Bank of Nigeria on Monday to operate Mobile Money (MoMo).
MTN Nigeria’s Mobile Money (MoMo) service has more than 9-million users since it launched in 2019. According to TechCabal, the approval means that MTN Nigeria will be able to provide all the services offered by conventional commercial banks virtually, with the exception of granting credit and processing foreign exchange transactions.
“We are grateful to the CBN for granting the final approval to commence the operations of MoMo PSB, which is an important milestone for our Ambition 2025 strategy. We are excited about the opportunity for MTN Nigeria to support the CBN and the Federal Republic of Nigeria in fulfilling the agenda of driving financial inclusion in Nigeria,” MTN Group CEO Ralph Mupita said.
Mobile money is an electronic wallet service or payment service operated under financial regulation and performed from or via a mobile device. Instead of using credits cards, cash, and cheque, customers can use mobile pay.
Currently, this mobile money banking system is available in numerous African countries including Zambia, Ghana, Cameroon, and the Democratic Republic of Congo.
The approval is also expected to encourage the adoption of mobile money in Nigeria as the users increase, especially users in the rural areas and underserviced areas.
MTN Nigeria saw a revenue climb to a record ₦1.7 trillion ($3.4 billion) last year, with profit leaping 45.5% to ₦298.9 billion ($598 million), according to TechCabal.
Mobile money is a growing contributor to MTN Nigeria’s income, and it’s anticipated that the new banking licence will allow the company to explore growth opportunities presented by Nigeria’s unbanked population.
By Zintle Nkohla
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