MTN obtains authorization to offer banking services in Nigeria

Abuja, Nigerian regulators have given the green light to South African telecommunications giant MTN to run a conventional commercial bank, the telecom operator announced on Monday.

MTN, the mobile telecommunications company that started operations in Nigeria since 2001, will now be able to offer services offered by commercial banks, except for granting credit and processing foreign exchange transactions. “The launch date will be communicated to the Central Bank of Nigeria (CBN) as per its requirements,” MTN said.

In a note to the Nigerian Stock Exchange, MTN said the new company will be known as MoMo Payment Service Bank Limited.

Karl Toriola, CEO of MTN Nigeria, said on April 11, 2022 in Abuja: “We want to leverage the financial inclusion drive. We plan to give people who don’t have bank accounts or even ATM cards the ability to be able to do banking. “And we are focusing on our size. When we have over 70 million subscribers spread across Nigeria through our infrastructural deployment, we are well positioned to cover everywhere. This is exactly what we want to achieve. MTN’s broad scale of broadband penetration gives it an open reach to rural Nigerians and urban areas without access to banking services through connectivity.

In December 2021, MTN and Mafab won the 5G spectrum license bid auctioned by the Nigerian Communications Commission (NCC).

MTN Nigeria (MTNN), which provides a third of MTN Group’s sales, saw its revenue soar to a record $3.69 billion last year, with profit up 45.5% to $652 million of dollars.

The company derives most of its revenue from voice calls and data subscriptions.

In its 2021 financial account released last week in Abuja, its customers spent more on data subscriptions, increasing the revenue line by 55.31% while voice calling revenue appreciated by 6.96%.

The company has three business segments to introduce which are Customer Business Unit, Enterprise Business Unit and Wholesale Business Unit.

The client business unit generated $3.17 billion, or 88% of total revenue. The enterprise business unit generated $321 million, while the wholesale business unit generated the least revenue of $102 million.

On March 15, 2022, MTN signed a Memorandum of Understanding with the Nigerian Stock Exchange (NGX) to promote financial literacy and improve retailers’ participation in the Nigerian capital market.

The MoU, a two-year partnership, will see NGX and MTNN collaborate to develop capital market solutions and leverage technology to support data delivery.

It will also promote capacity development and remove barriers to retailers’ participation in the capital market.

NGX CEO, Temi Popoola said, “With its customer base of over 68 million customers, MTNN provides invaluable access to a wide range of potential retail investors who can play an important role in the Nigerian capital market. , thereby strengthening their own financial resilience. “This collaboration with MTNN aligns with our aspiration to build an open, professional and dynamic exchange and we are truly excited about this NGX era. “

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