Business

CBN Issues Guidelines For Payments Service Holding Companies

Published

4 years ago

August 4, 2021

The Central Bank of Nigeria, CBN, has issued guidelines for licensing and regulation of Payments Service Holding Companies, PSHCs, in the country.

The apex bank, yesterday, disclosed this in a circular to all Deposits Money Banks, Payment Service Providers and Other Financial Institutions.

The guidelines, stated: “The regulation requires companies desirous of operating more than one licence category, to set up a PSHC, with activities of subsidiaries clearly delineated.

This arrangement would prevent commingling of activities, facilitate management of risks and enable the CBN exercise adequate regulatory oversight on all the companies operating within the Group.

“The affected regulated payment activities are: Mobile Money Operations, Switching and Processing, Payment Solution Services and any other activity as may be approved by the CBN.”

On activities that are permissible and non permissible, the guidelines stated: “Except as listed in Section 5.2, the activities of the PSHC shall be restricted to the holding of equities in financial and technological subsidiaries that facilitate and/or enhance innovative digital financial services.

The PSHC can provide broad policy direction, shared services and/or enter into technical or management service contract with any of its subsidiaries, with the prior written approval of the CBN, in respect of the following areas: Human Resources services; Risk Management services; Internal Control services; Compliance services; Information and Communication Technology; Legal services; Facilities (office accommodation including electricity, security, cleaning services in that accommodation); and, Any other services as may be approved by the CBN from time to time.

“Shared services shall be provided on arm’s length basis. Transactions in respect of such services shall require the consent of the Board of Directors of the subsidiary.

“A PSHC is prohibited from undertaking the following activities: Establishment, divestment and closure of subsidiaries, without the prior written approval of the CBN.

“Deriving or receiving income from sources other than as listed herein: Dividend income from its subsidiaries/associates; Income from shared services, where applicable; Interest earned from idle funds invested in government securities or placement with licensed financial institutions.

“Patents, royalties and copyrights; Profit on divestment from subsidiaries/associates; and any other source as may be approved by the CBN.

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Business

RMAFC Chairman, Champions New Revenue Optimization Initiative in Collaboration with NASDRA

Published

6 days ago

January 30, 2025

The Gleamer

Joel Ajayi

The Chairman, Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Dr. Muhammed Bello Shehu, OFR, has reaffirmed the Commission’s commitment to modernizing Nigeria’s revenue generation in collaboration with the National Space Research and Development Agency (NASDRA) and other key stakeholders.

The Chairman made this reaffirmation on
Thursday, at the Commission’s Headquarter in Abuja, during the launching of the implementation of the Presidential initiative on revenue optimisation and digitalisation via space technology.

The Chairman recalled that during his inaugural speech, His Excellency, President Bola Ahmed Tinubu, GCFR, emphasized the importance of economic recovery through enhanced revenue generation, which can primarily be achieved through the discovery of new revenue streams.

He emphasized that the Renewed Hope Agenda of this Administration can only be realized through the implementation of efficient revenue generation methods, with the creation of new revenue streams through the use of modern technology.

Dr. M.B. Shehu, OFR said, “We stand at the threshold of a new era, where innovation, creativity and collaboration drive economic growth and progress. It is indeed not an overstatement to say that the traditional sources and methods of revenue generation, apart from the fact that they are no more in vogue, are, most importantly, not sufficient to meet the evolving needs of our great Nation. Therefore, as key stakeholders, we must think innovatively and collaboratively to unlock new opportunities for economic growth and development in the interest of our beloved country.”

Dr. Shehu, therefore, emphasized the need for a strategic, technology-driven approach to revenue mobilization, pointing out that effective collection, accountability, and proper utilization of revenues are essential for national development. He posited that optimizing revenue sources is not just a necessity but a responsibility that must be shared by all stakeholders. “We are at the verge of writing a new chapter in Nigeria’s leadership. The collective determination of stakeholders here today is key to optimizing revenue collection and utilization. This is a task that must be achieved for our dear country.” He said.

The Director General of NASDRA, Dr. Matthew Olumide Adepoju, highlighted the potentials of space technology in revenue mobilization, noting that with AI, robotics, and space innovation, Nigeria can generate up to $50 billion annually while also strengthening national security.

Earlier in his Welcome Address, the federal commissioner representing Bauchi State in the Commission and Ag. Chairman of the Mobilization and Diversification Committee, Engr. Muhammed Sani Baba acknowledged the importance of the initiative and called for the support of all stakeholders to ensure its successful implementation.

He disclosed that the occasion was organised as a step towards the implementation of the directive of Mr President that the generation, collection and subsequent utilization of revenue should be modernized for the growth of the country and its exciting future.

A technical session featured a NASDRA-led presentation on leveraging space science and technology to block revenue leakages and create new revenue streams.

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