Adedapo Adesanya
By Adedapo Adesanya
The share price of MTN Nigeria Communications Plc appreciated by 1.21 per cent or N2.50 to N208.50 at the close of transactions on Monday, April 11, 2022, on the news that the Central Bank of Nigeria (CBN) has granted the company final approval to operate Momo Payment Service Bank Limited (MoMo PSB).
The announcement of the approval was disclosed in a press release titled The Central Bank Of Nigeria Grants Final Approval For MoMo Payment Service Bank Limited To Commence Operations signed by Mr Uro Ukpanah, the Company Secretary today.
In November 2021, the telco alongside one of its arch-rivals, Airtel Africa, received an “Approval in Principle” (AIP) from the apex bank to operate a PSB.
Today, the firm said it has now received a final authorisation to operate in the nation’s financial services sector.
“MTN Group is pleased to announce that MTN Nigeria, as a promoter of MoMo PSB, has received a letter dated 8 April 2022 from the CBN addressed to MoMo PSB conveying approval for it to commence the operations. This follows the approval in principle for MoMo PSB dated 4 November 2021. The commencement date will be communicated to the CBN in accordance with its requirements,” a part of the statement read.
Speaking on the development, MTN Group President and CEO, Mr Ralph Mupita said “we are grateful to the CBN for granting the final approval to commence the operations of MoMo PSB, which is an important milestone for our Ambition 2025 strategy.
“We are excited about the opportunity for MTN Nigeria to support the CBN and the Federal Republic of Nigeria in fulfilling the agenda of driving financial inclusion in Nigeria”.
Business Post gathered that MTN Group will provide more details regarding the commencement of operations along with related matters and timelines during its investors’ call on the release of the Q1 2022 trading update, which will happen on May 6 2022.
With MoMo PSB, MTN will be able to grow its services as well as help attain more financial inclusion as it will leverage its reach to reach underserved Nigerians, especially in the rural areas.
The rush for MTN shares was because investors believe the entry of the telco into the financial services sector will boost its earnings and result into more value for shareholders.
