By Modupe Gbadeyanka

As part of measures to promote its cashless policy, the Central Bank of Nigeria (CBN) has directed Point-of-Sale (POS) agents not to pay more than N100,000 as cash to each customer per day.

The banking sector regulator also restricted the POS operators not to pay more than N1.2 million per day as cash to customers, adding that customers may not withdraw more than N500,000 per week as cash.

To ensure accountability, the CBN has mandated that all agency banking transactions must be conducted exclusively through float accounts maintained with the principal institutions.

It also directed that agent banking services be separated from other merchant activities, with agents required to use the approved Agent Code 6010 for transactions.

In a circular dated December 17, 2024, the central bank noted these efforts are to ensure uniform operational standards, combat fraud, and enhance the use of electronic payment systems in agency banking operations.

The CBN ordered that, “All principals of agents are to comply with the following directives immediately,” in the circular signed on behalf of its Director of the Payments System Management Department, Mr Oladimeji Taiwo, and directed at Deposit Money Banks, Microfinance Banks, Mobile Money Operators, and Super-Agents.

“Issuers shall set a cash withdrawal limit (cash-out) per customer (regardless of channel) to N500,000.00 per week; Ensure that all agent banking terminals are set to a daily maximum transaction cash-out limit of N100,000.00 per customer; Ensure that each agent’s daily cumulative cash-out limit shall not exceed N1,200,000.00,” the notice added.

The central bank advised all stakeholders to adhere strictly to the directives to ensure the smooth implementation of the policy and contribute to the advancement of Nigeria’s cashless economy.

By Adedapo Adesanya

African telecommunication giant, MTN, is planning to acquire a full banking licence in South Africa.

According to reports, the telco plans to do this once the South African Reserve Bank (SARB) opens up its national payments system to fintechs and other non-banking entities.

MTN already has a banking service known as MTN Mobile Money (MoMo), but this supports limited transactional banking services.

MoMo offers payments and money transfers to individuals and businesses and customers use their phone numbers to carry out transactions like cash transfers and bill payments.

Due to stringent regulations, MTN and other fintech companies that offer these services work through a licenced bank as a sponsor. For MoMo, MTN uses the African Bank.

Now, this may change as SARB is reportedly working to enable non-banking entities like fintechs and telcos to gain direct access to the core clearing and settlements system.

The SARB is currently developing frameworks to authorise fintechs and other non-banking entities to access the national payment system directly.

According to the South African central bank’s head of the National Payments System, Mr Tim Masela, although banks were the backbone of the financial system in terms of savings and accounts, non-banks were offering convenient transactional services.

“We believe that we should move with the times and open up the system for the entry of non-banks,” Mr Masela said.

According to MTN South Africa’s chief fintech officer, Mr Kagiso Mothibi, entities like fintechs will be given an opportunity to participate in the banking system following an ongoing review of the payments system.

“When that is rolled out, we’ll definitely be looking to pursue our own licence,” Mr Mothibi said.

MoMo is one of several fintechs that participated in the SARB’s working groups to develop the regulatory framework that will enable greater direct participation in core banking services.

The frameworks are necessary to balance innovation with the risks associated with a more flexible and open financial system.

Mr Mothibi said that bypassing a traditional banking partner would allow MTN to exercise much more control over the future of its banking services.

By Modupe Gbadeyanka

The award for the Most Financially Inclusive Pension Company of the Year has been given to Stanbic IBTC Pension Managers.

The leading pension fund administrator in Nigeria got this accolade at the recently held International Financial Inclusion Conference (IFIC’24) organised by the Central Bank of Nigeria (CBN).

This recognition marks a significant milestone for Stanbic IBTC Pension Managers as it continues to advocate for financial education and empowerment; striving to create a secure future for individuals through effective pension management.

The award not only reflects the company’s efforts but also serves as motivation to pursue further advancements in financial inclusivity in Nigeria, contributing to the overall economic growth and stability of the nation.

According to the chief executive of the firm, Mr Olumide Oyetan, the management has mapped out several initiatives aimed at expanding access to pension services.

He listed these to include mobile applications that simplify the pension enrolment process, workshops that promote financial literacy and tailored pension products designed for informal sector workers and low-income earners.

He added that in collaboration with various community organisations and Non-Governmental Organisations (NGOs), Stanbic IBTC Pension Managers is also actively engaging underserved populations to raise awareness about the importance of retirement planning.

Mr Oyetan said this award from the central bank affirmed the impact of the company’s strategies for deepening financial inclusion in the country.

“IFIC’24 serves as a vital platform for financial sector stakeholders to collaborate and discuss strategies for enhancing financial inclusion, and we are proud to be recognised among key industry players.

“The conference highlighted the critical role of innovative solutions in achieving financial inclusion goals, aligning perfectly with Stanbic IBTC Pension Manager’s vision for accessible and equitable pension services.

“We believe that financial inclusion is not merely a goal; it is a fundamental right that empowers individuals, enhances economic stability, and fosters sustainable growth in communities.

“Our commitment to providing accessible and innovative pension solutions has always been at the forefront of our operations.

“This award is not just an acknowledgement of our efforts but a validation of our continuous endeavours to make pension services available to every Nigerian, irrespective of their socioeconomic status,” he stated.

The chief executive noted further, “By prioritising accessibility, we are breaking down barriers and ensuring that more individuals can secure their future through reliable pensions. This recognition motivates us to continue innovating and expanding our outreach.”