MTN gets super-agent license from CBN, in bid for a larger share of Nigeria’s financial services space

by | May 16, 2019

Over the years, the Central Bank of Nigeria has been introducing a series of initiatives to drive financial inclusion penetration in the country.

Examples of such initiatives include the Shared Agent Network Facility (SANEF) and Payment Services Banks, both of which were introduced within the last two years. Both MTN Nigerian and Airtel Nigeria have since indicated interest in the PSB model after CBN released the guidelines for its licensing and regulation.

However, it appears that MTN is not going after the PSB licence alone. According to Rob Shuter, the CEO of the South African telecommunications group, the company has gotten approval-in-principle for a super-agent licence in Nigeria.

With the super-agent licence, the telco can re-purpose its network of agents, that sell prepaid airtime, to also offer cash-in-cash-out financial services.

Advertisement

MTN will be rolling out the super-agency model on a test basis while its commercial launch is expected to be within the second half of 2019.

And as revealed by Shuter during a conference call for the company’s Q1 results (PDF), MTN is still looking forward to getting approval for its PSB licence within the next couple of months.

Because super-agency doesn’t allow MTN to offer prepaid wallets holding e-money, the telco is banking on the PSB licence the former’s limitations.

When MTN eventually gets approval for the super-agent licence and rolls out, its agents across the country will be able to offer financial services which translates to more revenue for the agents.

According to the regulatory framework for licensing super-agents, an agent’s share of the transaction fee is 57%, which is higher than the combined share of the other four players involved in a transaction.

Considering that MTN maintains agents across all the 36 states of the country including the federal capital territory, the telco has a higher chance of reaching more people than any other super-agent licence holder in the country.

Yinka Awosanya
Yinka Awosanya

Mobile & African Tech Enthusiast │ Data Analyst │ Music

Advertisement

On January 22, 2022, be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap