Mobile Money Operators Won’t Accept Airtime As Deposit, Payment- CBN

As Nigeria seeks to deepen banking coverage in the country through Mobile Money Operators, the Central Bank of Nigeria has barred MMOs from accepting airtime as deposits or form of payment.

CBN made this known in a fresh Guidelines on Mobile Money Services in Nigeria released on July 9.

The country has about 36 per cent of its adults not financially included as the apex bank sees mobile channels as a means of driving financial inclusion of the unbanked population.

The CBN said MMOs will not “Accept any closed scheme electronic value (e.g. airtime) as a form of deposit or payment.”

Apart from restriction on airtime, CBN also said they are not permitted to grant any form of loans, advances and guarantees (directly or indirectly).

It also restricted MMOs from accepting foreign currency deposits; deal in the foreign exchange market except as prescribed in Section 4.1 (ii & iii) of theextant Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria.

The apex bank also said they will not engage in insurance underwriting and will not own subsidiaries.

But the bank said MMOs would carry out the activities of wallet creation and management; e-money issuing; agent recruitment and management; pool account management.

MMOs will also engage in the business of non-bank acquiring as stipulated in the regulatory requirements for non-bank merchant acquiring in Nigeria; card acquiring; and any other activities that may be permitted by the CBN.

With the growth of fintech in the country, CBN in 2019 licensed 22 MMOs to commence operation.

The likes of Opay with over 300,000 agents and 5 million users across the country received its license in 2019.

MTN Nigeria operates as an MMO under the name MoMo, while banks like First Bank of Nigeria operate as FirstMonie.