On the 24th of May 2021, the Central Bank of Nigeria (CBN)
issued a circular stipulating the requirements for licensing of
Payment Services Providers (PSP). The circular comprehensively
highlights the basic licensing requirements for Payment Services
Providers. The circular is a consolidation of an earlier one issued
by CBN on the 9th of December, 2020 which provides for New
License Categorization for the Nigerian Payment System.
Below is a highlight of the new CBN's Circular made in
tabular form for convenience.
1. SWITCHING AND PROCESSING LICENSE
Switching companies facilitate the exchange of value between
financial service providers, merchants, their customers and other
stakeholders. These are financial institutions operating in the
country and are otherwise called issuers of payment tokens (cards,
vouchers, etc), which are used on the network of switches. Below is
the licence requirement for Switching and Processing companies.
