Nigeria: CBN to license super-agents to manage electronic payments

Dec 08, 2014

The Central Bank of Nigeria (CBN) is to license super-agents in a bid to develop the country's electronic payment system.

In a circular to all deposit money banks, mobile money operators and switches, the CBN asked for inputs on a framework for super-agents before December 12, 2014, The Daily Independent reports.

A super-agent will subcontract other agents in a network. It will not hold electronic money value, but will retain overall responsibility for the agency relationship. They will be closely monitored in view of the probable higher risk, liquidity management and consequences of failure, the CBN said.

Any institution wishing to be licensed as a super-agent for two years must submit an application for approval to the CBN and have a minimum Shareholders' Fund unimpaired by losses of N50 million (€223,600). It must also be operational for at least 12 months, be registered with the Corporate Affairs Commission (CAC), and must have a minimum of 50 agents.

In order to boost the use of e-payments and improve access to finance, the Central Bank of Nigeria (CBN) is about to review its guidelines on the topic, according to Deputy Governor Alhaji Suleiman Barau.

He explained last month the Bank was committed to reviewing the mobile payment regulatory framework, guidelines on stored value/prepaid cards and usage in Nigeria, as well as guidelines on ATM operations.