Airtel gets licence to recruit agents for agency banking
By Jeph Ajobaju, Chief Copy Editor
Airtel has received a licence from the Central Bank of Nigeria (CBN) to operate as a full super agent which means being an agency network.
A super agent licence is different from Payment Service Bank (PSB) licence for which both Airtel and MTN received Approval In Principle (AIP) on 4 November 2021. MTN received earlier in April final approval to operate as a PSB.
Super agents are businesses licensed by the CBN to recruit agents for agency banking, which involves providing financial services to communities on behalf of banks to increase financial inclusion.
“Further to our announcement of 15 November 2021, Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today confirms that the Central Bank of Nigeria (‘CBN’) has awarded its subsidiary, Airtel Mobile Commerce Nigeria Ltd, with a full super agent licences,” said a statement signed by Company Secretary Simon O’Hara.
“The licence allows us to create an agency network that can service the customers of licenced Nigerian banks, payment service banks and licenced mobile money operators in Nigeria.”
Airtel did not say when its super agent operations will commence.
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CBN guidelines for PSBs
With the super agent licence, Airtel will be able to create an agent network that can service customers of commercial banks, payment service banks, and mobile money operators, per reporting by Nairametrics.
Airtel, however, needs a PSB licence to expand its scope of financial services.
The CBN clarifies that PSBs are different from, and cannot compete with, commercial banks – as specified in the operational guidelines, some of which are below:
- The key objective of issuing PSB licences is to boost financial inclusion, especially in rural areas and facilitate transactions.
- “To enhance financial inclusion in rural areas by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other entities through high-volume low-value transactions in a secured technology-driven environment,” the CBN said.
- PSBs are to function in rural regions and in areas where people do not have bank accounts. They are to have at least 50 per cent physical access points (kiosks) in rural areas.
- PSBs may operate ATMs in some locations for their customers to withdraw cash.
- Both commercial banks and PSBs can accept client deposits and invest a portion of those deposits in short-term CBN or FG products.
- But PSBs cannot grant loans and advances, only commercial banks can.
- PSBs can transfer some of their excess cash to any commercial bank of their choice.
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