How To Set Up/Register a Payment Service Provider (PTSP) company in Nigeria

How To Set Up/Register a Payment Service Provider (PTSP) company in Nigeria

August 24, 2023


A payment terminal service provider is a fintech company licensed by CBN which has the responsibility of providing POS terminals, its support and maintenance services to customers. Under the new license categorisation for Nigerian payment service providers issued by the Central Bank of Nigeria on the 9th of December, 2023, four categories were made to streamline the permissible activities that can be carried out by fintech companies. One of them is payment terminal service provider which is a sub-category under payment solution services.

Licensed PTSPs are reviewed annually to access their performance targets, where they do not meet up with the targets, their licenses can be withdrawn and fresh licenses issued to qualifying companies. Example of PTSPs are Paymaster, Etop, Citiserve, Valucard and ITEX. Only PSTPs shall be allowed to distribute POS terminals nationwide, any other company that distributes POS terminals without a licence shall be penalized with a daily payment of N50, 000 Naira for the period which the POS’ are deployed.

To obtain a PTSP licence in Nigeria, the following must be done:

  • Registration of the company with the Corporate Affairs Commission (CAC). The Memorandum of Association should be restricted to the permissible activities for PTSP including POS terminal deployment and services, POS terminal ownership, payment terminal application developer (PTAD), merchant/agent training, and support.
  • The minimum share capital of a PTSP company is N100Million
  • An application must be made to the CBN with the accompanying documents.
  • The application fee is N100,000 while the licensing fee is N1Million before the issuance of the final license.
  • Incorporation documents which include the certificate of incorporation of the company, Memorandum and Articles of Association, Form CAC 2A (return on allotment of Shares), Form CAC 7A (Particulars of Directors) must be submitted alongside the application to the CBN.
  • Three years tax clearance certificate (TCC) (if applicable) and the Tax identification number of the company.
  • Details of ownership and holding company structure (if applicable); any significant changes in ownership in the last two years.
  • Company details, profile and business plan.
  • BVN, CV and means of identification of the directors and top management (including one independent non-executive director, chairman and managing director).
  • Requisite policies and framework.
  • Project deployment methodology.


  • Escrow of refundable N 100m into CBN PSP Share capital Deposit Account Number 1000014009
  • Deposit for escrow must be in full (one lump sum).
  • It must be made in the name of the company applying for the license (not an individual or related company).
  • Escrowed funds are invested in treasury bills, subject to availability of treasury installment which would be refunded accordingly.

Team 618 Bees

618 Bees can quickly and easily help you register for PTSP Company with the CAC and obtain your License from the CBN. Log on to our website or email, or give us a call on +2349017190079/08080819653. 618 Bees will complete your application with both the CAC and the CBN.




The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached


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Frequently Asked

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • What is the first thing I must do to register a business in Nigeria?

    To register a business in Nigeria; you would need to conduct a name search of the business. You can achieve this using your CAC-CRP account.

  • What are the terms of a contract?
    • an offer and an acceptance.
    • competent parties
    • Consideration
    • Legal subject matter
    • Mutual agreement/ Assent
    • Conesus ad idem
    • Obligation
  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • What is classified as personal data?

    Name, photograph, personal health/bio information, account/financial information, phone number, Address, date of birth, place of birth, Email address, etc.

  • What is eligible for Patent registration?

    Patents are granted for the invention of products or processes. However, for it to be patentable, the invention

    • Must be new,
    • Must have an inventive step that is not obvious to someone with knowledge and experience in the subject,
    • Must be capable of being made or used in some kind of industry and not be, a scientific or mathematical discovery, theory or method, a literary, dramatic, musical or artistic work, a way of performing a mental act, playing a game or doing business, the presentation of information, or some computer programs, an animal or plant variety, a method of medical treatment or diagnosis,
    • And must not be against public policy or morality.
  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • How many shareholders do I need to start a company?

    A minimum of one (1) adult shareholder is required to form a company.

  • Does Trademark registration protect my website domain name?

    Yes, it does.

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