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ARTICLE · 08 OCTOBER 2024

Fintech Regulation In Nigeria: CBN Directives On Payment Terminal Services

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As part of the Central Bank of Nigeria's (the "CBN") efforts to maintain a transparent transactions settlement system, the CBN issued a Payment Terminal Service Aggregator...

NigeriaTechnology
Aderonke Alex-Adedipe
Aderonke Alex-Adedipe
Hillary Okorotie
Hillary Okorotie

Introduction

As part of the Central Bank of Nigeria's (the "CBN") efforts to maintain a transparent transactions settlement system, the CBN issued a Payment Terminal Service Aggregator (PTSA) license to the Nigeria Interbank Settlement System (NIBBS) in 2011. In April 2024, the CBN also issued a PTSA license to Unified Payment Services Limited, therefore becoming the second PTSA license holder in Nigeria. This second license was issued to provide an efficient and transparent settlement system of all point of sales (PoS) transactions in the Country and to decentralize the sector.

Subsequently, via a circular released by the CBN on September 11, 2024, the CBN issued new guidelines requiring all Payment Service Providers (PSPs) to commence regularization and channel their operations through either of the two PTSA licensed operators.

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