Airtel Nigeria Gets Approval in-Principle to Operate Super-Agent (S-A) Network in Nigeria

Another approval has been granted to Airtel Nigeria by the Central Bank of Nigeria (CBN) to operate as a super-agent Network in Nigeria. The super-agent licence, allows Airtel to create an agent network that could service the customers of licenced Nigerian banks, Payment Service Banks (PSB) and licenced mobile money operators in Nigeria. This licence is different from the PSBs licence in which approval-in-principle was granted to Airtel and MTN on the 4^th of November to float) to launch SMARTCASH and MoMo Payment Service Banks Limited, respectively. The PSBs licence is the right  to provide financial services such as accepting cash deposits and carrying out payments and remittances, issuing debit and prepaid cards, operating electronic wallet and rendering other financial services to the consumers in Nigeria. MTN Nigeria, was the first telecoms firm to obtain a super-agent licence in 2019.

Just like in the case of the PSBs, the approval-in-principle means that Airtel will have to fulfil the minimum requirements for a super-agent within a stipulated period before a full licence is granted to them. According to the CBN, a Super-Agent shall be licensed under the following requirements:

• Must be a company with an existing business, operational for at least 12 months.
• Must be registered with the Corporate Affairs Commission (CAC).
• Must have a minimum Shareholders’ Fund, unimpaired by losses of N50million.
• Must obtain a reference letter from a Financial Institution (FI) as part of its documentation for licence.
• Must have a minimum of 50 agents.

The Super-agents shall undertake the following responsibilities:

• Be responsible for monitoring and supervising the activities of the agents.
• Have information on the volume and value of transactions carried out for each type of service by each agent (which should be made available to the principal).
• Monitor effective compliance with set limits and establish other prudential measures in each case.
• Take all other measures, including onsite visits, to ensure that agents operate strictly within the requirements of the law, guidelines and the contract.
• Notwithstanding the responsibility by the S-A to monitor and supervise their agents, the CBN may at any time request for any information or carry out inspection as it deems necessary.

These licenses will help to diversify the revenue sources of Airtel and others granted them licences and will help boost Nigeria’s financial inclusion drive. It will attract greater competition in Nigeria’s financial services space and as such will help lower the cost of financial services and offer a diverse range of financial products in coming periods ahead.