A week after both Airtel and MTN were granted approval by the Central Bank of Nigeria (CBN), to operate a payment service bank (PSB) via Smartcash Payment Service Bank Limited, Airtel Africa Plc has announced that it has been granted approval-in-principle by the CBN to operate as a super-agent in Nigeria.
The telecom company announced this on Monday, explaining in a statement on the Nigeria Exchange Limited (NGX), that Airtel Mobile Commerce Nigeria, its subsidiary will operate the agent banking license.
Super agents are companies approved by CBN to recruit agents for agency banking, such as financial services within communities on behalf of banks to deepen financial inclusion.
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Airtel explained in a statement that super agent license, which is different from the PSB, gives it the opportunity to carry out financial services on behalf Nigerian banks.
“The super agent licence is distinct from the Payment Service Bank (PSB) licence for which it received approval in principle on 4 November 2021.
“The PSB licence is required for Airtel to be able to provide financial services in Nigeria such as accepting cash deposits and carrying out payments and remittances, issuing debit and prepaid cards, operating electronic wallets, and rendering other financial services.
“Under the super agent licence, we would be able to create an agent network that can service the customers of licensed Nigerian banks, Payment service banks and licenced mobile money operators in Nigeria.
“Final approval of the super agent licence is subject to the Group satisfying certain standard conditions,” it said.
The federal government of Nigeria, through the CBN, has been working on policies that will facilitate financial inclusion in the country. Among them is the issuance of financial service licenses to qualified telecom operators.
Despite Nigeria’s fintech boom, the African largest economy still has a wide gap of about 40 million people who lack access to financial services. With this gap, telcos, with their huge customer-base that covers even the rural dwellers, are being selected to offer financial services to the underserved.
The Chief Executive Officer, Airtel Africa, Segun Ogunsanya said Airtel is working to meet all the requirements for the license.
“I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating licence and commence operations.
“The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services.
“I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.“
Depending much on the success of Airtel and MTN, It is expected that more companies in the telecom industry will be approved to offer financial services soon.