Obtaining a Mobile Money Operating License in Nigeria

Obtaining a Mobile Money Operating License in Nigeria

September 06, 2023
Mobile banking realistic concept with mobile phone and credit card vector illustration

What is mobile money?

Mobile money is a financial solution that allows users to send and receive money, as well as pay for goods and services with their phones without a bank account. It is also a digital/electronic service you have on your phone or tablet that is often linked to your mobile number or email address.

Types of Mobile Money services

There are two categories by which mobile money services can be carried out as listed by the CBN, they are:

  1. The bank-led model: This is a model where a bank either alone or a consortium of banks, whether or not partnering with other approved organizations, seeks to deliver banking services by leveraging on the mobile payments system.
  2. The non-bank led model: This model allows a corporate organization that has been duly licensed by the Central Bank of Nigeria (CBN) to deliver mobile money services to customers.


Who are Mobile Money Operators?

These are organizations that are licensed by the CBN to provide the system for the mobile money services. They are required to provide the infrastructure for mobile money services, business continuity and disaster recovery plans to ensure services are always available at all times. also 99.99% system availability and ensure all signed on participating institutions follow same rule.

They are required to connect to the National Central Switch (NCS) for the purpose of ensuring interoperability of all schemes in the system. The regulators for the mobile money operators are the Central Bank of Nigeria, and the Nigerian Communications Commission (NCC).


How do I get a money mobile operating license?

Firstly, a PSHC strcutrure must be set up as stated by the CBN in its Guidelines released on the 3rd of Augsut, 2021, which is the Guidelines for the Establishment and Regulation of Payment Service Holding Companies (PSHC) in Nigeria. The Guideline defines PSHC as a company whose principal object clause is to be a holding company set up for the purpose of making and managing equity investment in 2 (two) or more companies, being its subsidiaries, which includes payment service provider such as Mobile Money Operations, switching and processing, payment solution services.

The minimum issued share capital of a company seeking to apply for MMO license is N2,000,000,000.00 (Two Billion Naira).

In the PSHC Structure, the PSHC will be the holding company, then the mobile money operator a subsidiary, and the switching and processing company, the third subsidiary. Hence, it is expected that a mobile money operating company forms at least 3 (three) companies, and each of the three companies shall have a minimum share capital of N2,000,000,000 (Two Billion Naira). The company must then be incorporated at the Corporate Affairs Commission.

The Licensing requirement as provided in the CBN guideline requires the promoters of the companies to submit a formal application for the grant of a license addressed to the Director, Payments System Management Department of the CBN.

The licensing process shall be in two phases: Approval-in-Principle (AIP) and Final License stage. For the AIP, a non-refundable application fee of N1,000,000.00 (One Million Naira or such other amount that the CBN may specify from time to time is payable to the CBN, through electronic transfer. The application will be accompanied with all other requirements as stated in the CBN guidelineS as well as any other document/information that the CBN may require from time to time during the application process.

If satisfied with the application of the promoter(s), the CBN may grant an Approval in Principle (AIP). The AIP stage usually takes a period of between 2-3 months to process.

Within six (6) months after obtaining the AIP and incorporation of the company, the promoters of a proposed PSHC shall submit an application to the CBN for the grant of a final license. The application shall be accompanied with the list of all other requirements as prescribed in the guidelines as well as a non-refundable licensing fee of N5,000,000.00 (Five Million Naira) or such other amount that the CBN may specify from time to time, payable to the CBN by electronic transfer.

The final license stage usually takes a period of between 2-3 months to process and upon obtaining the Final License, the PSHC shall inform the CBN of its readiness to commence activities and such information shall be accompanied with one copy of each of the following:

  1. Shareholders’ Register.
  2. Share certificate issued to each investor.
  3. Enterprise Risk Management Framework (ERMF).
  4. Internal Control Policy.
  5. Minutes of pre-commencement Board meeting.
  6. Opening statement of affairs signed by directors and auditors.
  7. Date of Commencement of Activities.


Team 618 Bees


618 Bees can quickly and easily help you register a Mobile Money Operating Company with the CAC and obtain your Operating License from the CBN. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079/08080819653. 618 Bees will complete your application with the both the CAC and 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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