MTN Says Will Apply For Banking License In Nigeria

Doris Richards
November 15, 2018

While mandating that an evidence of the payment of N5 billion must be provided when applying for an Approval in Principle, the CBN granted the telcos a provisional approval to apply for a Payment Service Bank licence through a subsidiary company. "But if you look at everything we have learned across the markets, where it is scaling in the other markets, we believe this is a service that is really competing with cash, but you have to find the pockets of the population that are still predominantly transacting in cash and give them an easy, affordable and high quality service, and we really believe MTN Mobile Money can still work very well in South Africa".

"So, if that's the case, they have to answer to Nigerians through us in the Senate committee to the legislature, what informed the penalty of $8.1bn?"

"CSNAC, whose primary mandate is the enthronement of transparency, accountability, probity and total commitment to the fight to eradicate corruption in Nigeria chose to approach the EFCC, a neutral party, with the said request with a view to ensuring that the matter is not swept under the carpet with the meddling of the Senate and certain Senators through an ill-intended resolution exonerating MTN".

The CBN accused MTN of "flagrant violation of extant laws and regulations of the Federal Republic of Nigeria, including the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995 and the Foreign Exchange Manual, 2006".

"We want to know what informed this decision".

Although the outcome of the meeting and the size of the reduction have not been made public by the apex bank, the Senate kicked yesterday, alleging that a whopping $7.3billion had been discounted without recourse to it. We as a committee and as a Senate will be interested. This is a very sensitive thing to the economy.

This followed the consideration of the report of its committee on Banking, Insurance and other Financial Institutions which investigated alleged unlawful repatriation of $13.92 billion from Nigeria.

It also asked the CBN then to sanction Stanbic IBTC Bank "for improper documentations in respect of capital repatriation and loan repayments" on behalf of MTN.

Purported plans by the Federal Government to reduce the $8.1 billion fine imposed on the communication giant, MTN, to $800 million is causing ripples in the Senate, Daily Sun has gathered. "Whether it will be dropped completely, I honestly can not say at this time", the CBN governor added.

Other reports by Iphone Fresh

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