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

TAJBank Emerges Nigeria’s Biggest Non-Interest Bank

Published

1 week ago

October 23, 2025

The Gleamer

Cyril Ogar

After five years of operations in Nigeria’s rapidly evolving non-interest banking (NIB) space, TAJBank Limited has become the biggest player in the NIB subsector based on its total assets and gross earnings values.

Disclosing this during his paper presentation on the key performance indices in the non-interest banking space over the past few years at a seminar organized by Leaders Corporate Services with the theme “Roles of Non-Interest Banks In SMEs’ Financing” for SME entrepreneurs yesterday in Abuja, an investment expert, Mr. Olabode Akeredolu-Ale, maintained that based on the non-interest banks’ approved financial statements for the half year 2025, TAJBank currently remained the biggest in terms of its total assets.

The expert, a chartered stockbroker, specifically confirmed that his recent investment researches on the NIBs and their financial performances showed that TAJBank, with its total assets rising to N1.017 trillion in half year 2025 up from N953.098 billion as of December 2024, which is about N53 billion higher than the nearest NIB’s assets, now ranked top in the banking subsector.

According to him, TAJBank’s gross earnings for H1 2025 also surged to N53.752 billion from N32.86 billion as of December 2024, representing a 64% growth, and higher than the nearest NIB’s gross earnings in the period under review.

This is even as he disclosed that on the NIBs’ earnings per share during the half year, TAJBank reported N61.36 kobo earnings per share, about 92% higher than the earnings per share of the next NIB during the period.

Akeredolu-Ale, who is also a chartered accountant, clarified: “The figures I am reeling out here on the NIBs are sourced from the banking and capital market regulatory institutions’ platforms, which anyone can access to verify.

“I am part of this event because of my research interest in non-interest banking and how the players in the subsector in Nigeria can help to leverage their competencies in innovation and ethical banking to support our MSMEs.

“Today, the MSMEs cannot access DMBs’ loans due to high lending rates and other inclement macroeconomic factors. This is where I think the NIBs have become very crucial to Nigeria’s economic growth.

“Overall, my findings on the NIBs indicated that they are all trying their best with non-interest loans to support entrepreneurs, particularly the MSMEs owners. I have advised those of them at this seminar to explore the cost-friendly financing options of the NIBs to grow their businesses by opening accounts with the NIBs”, the expert added.

Another speaker at the event, Benjamin Chukwudi, also commended the NIBs for their “catalytic roles in helping SMEs to access interest-free loans and providing them the needed financial management advisory, which have been helping them in sustaining their operations in the face of rising cost of doing business in the country.”

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