The Central Bank of Nigeria has issued a series of new guidelines to govern how a holder of a fintech license in Nigeria may combine it with other types of fintech licenses in a holding company structure.
Under the new rules, termed “GUIDELINES FOR LICENSING AND REGULATION OF PAYMENTS SERVICE HOLDING COMPANIES IN NIGERIA”, companies that wish to operate under more than one license category must establish a Payments Service Holding Company (PSHC) with clearly defined subsidiaries.
Financial technology companies in Nigeria that do not have the financial capacity to go for any of the license categories recently introduced by the Central Bank of Nigeria can now heave some sighs of relief. This is because the central bank has finally released a framework for regulating sandbox operations in the country. Unlike other fintech categories, such as agency banking or mobile money that require thousands of dollars in application fees to obtain licenses, no such fees are required for the grant of the regulatory sandbox license.