CBN announces guidelines for establishing payment service holding companies in Nigeria

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The Central Bank of Nigeria (CBN) has announced guidelines for the establishment and regulation of Payments Service Holding Companies (PSHCs) in Nigeria.

This was contained in a circular issued by CBN’s Director, Payments System Management Department, Mr Musa Jimoh, on Tuesday.

Jimoh added that no PSHC is allowed to borrow from the Nigerian banking system for the purpose of capitalising itself or any of its subsidiaries. The circular reads, “This arrangement would prevent commingling of activities, facilitate management of risks and enable the Central Bank of Nigeria to exercise adequate regulatory oversight on all the companies operating within the Group .

 

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