CBN Revokes Licence of Seven Payment Service Providers

By Dipo Olowookere

Seven Payment Service Providers (PSPs) have had their operating licences revoked by the Central Bank of Nigeria (CBN).

The affected companies lost their right to operate in the country over their failure to meet the obligations as stipulated when they were issued the authority to do financial transactions in Nigeria.

The seven firms whose licences were cancelled were Easifuel Limited, Transaction Processing System (TPS), Grand Towers Limited, Paymaster Limited, E-Revenue Gateway Limited, Eartholeum Network Limited and Globasure Limited.

The apex bank, in a circular issued on Thursday, stated that the revocation of the licences of the PSPs was approved by its governor, Mr Godwin Emefiele.

It was stated that the action of the CBN Governor was in compliance with sections 60 and 62 of the Banks and Other Financial Institutions Act (BOFIA) 2004.

In the circular, the CBN explained that the seven PSPs “ceased to carry on, in Nigeria, the type of business for which their licences were issued for a continuous period of six months.”

The central bank further explained that this was because they “failed to fulfil or comply with the conditions subject to which their licences were granted [and also] failed to comply with the obligations imposed upon them by the CBN in accordance with the provisions of BOFIA 2004.”

In a related development, the central bank also revoked the operating licence of a switch company, 3Line Card Management Limited, for a period of six months.

In the same circular, the apex bank said 3Line Card ceases “to carry on, in Nigeria, the type of business of being a switch for which its licence was issued for a continuous period of six months.”

It was stated that 3Line Card “failed to fulfil or comply with the conditions subject to which its licence was granted [and it also] failed to comply with the obligations imposed upon it by the CBN in accordance with the provisions of BOFIA 2004.”