Nigeria Payment Service Provider License

Introduction

The Payment Solution Service Provider license falls under the Payment Solution Services (“PSSs”), which permits holder to engage in payment processing gateway and portals, payment solution/application development, merchant services aggregation and collections as per the CBN Act 2007 and BOFIA 1991 (as amended).

In accordance with the CBN’s regulation, there are 3 categories of PSSP Licenses namely:

• Payments Solution Service Provider License
• Super Agent License
• Payment Terminal Service Provider License

Legal Requirements

sr No	Element	Requirement(s)
1	Entity Requirements)	The entity making the application is a Nigeria Limited Liability Company.
2	Director’s Requirements	Legally speaking, a minimum of Chairman, CEO/MD, and at least, one (1) Independent Non Executive Director and other Director(s) are required for Limited Liability Company holding a special license such as Payment Solution Service Provider License
3	Shareholder requirements	• The Payment Solution Service Provider License will need at least one shareholder. • Corporate shareholding is allowed.
4	Compliance Officer	• The applicant must have before approval of license, appointed a fit and proper MLRO and alternate MLRO. They are required to be able to access company records and the regulator and other service providers in Nigeria
5	Nigeria Office	• The applicant must satisfy the authorities that they have procured and equipped a place of business in Nigeria from where the operations of the company shall be run.
6	Auditor	• A Payment Service Provider is required to have its accounts audited annually by an auditor. • The applicant must put forward at the time of application, the designate auditor for approval by the authority.
7	Minimum Capital Requirements	• N100,000,000.00 (shareholders’ funds unimpaired by losses)

License Application Requirements

Payment Solution System Provider License Requirement

1. Certificate of Incorporation of the company
2. Memorandum & Articles of Association (Note: the object clause(s) must be RESTRICTED to relevant payments system activities permitted by the Bank)
3. Form CAC 2A (Return on Allotment of shares)
4. Form CAC 7A (Particulars of Directors)
5. Tax Clearance Certificate for three (3) years of the company (if applicable) and Taxpayer Identification Number (TIN) of company
6. The company’s profile; detailing current type of business operation, products and services
7. Structure of holding company or parent company (if applicable)
8. Details of ownership: private/public; ultimate parent; any significant changes in ownership in the last two years
9. Organogram
10. Total number of employees
11. Functional physical address, contact e-mails from company’s domain and telephone numbers (1) Board Structure – showing at a minimum Chairman, CEO/MD, and at least, one Independent Non Executive Director and other Director(s)
12. Bank Verification Number (BVN), Curricula Vitae (CVs), proof of government issued identity (National Identification Number (NIN), International Passport, Driver’s Licence, Voter’s Card) of Board and top management team.
13. Details of current line of business (if applicable
14. Information Technology policy of the company including:
    Privacy Policy
    Information Ownership/Disclosure/Loss Policy
    Backup and Restore Policy
    Network Security Policy
    Encryption Policy
    Confidential Data Policy
    Password Policy
    Third Party Connection Policy
    Incidence Response Policy
    Physical Security Policy
15. Enterprise Risk Management Framework
16. Dispute Resolution Framework
17. Contingency and Disaster Recovery Plan (Business Continuity Plan)
18. Duly executed agreements (drafts, as applicable) with the following:
    Technical partners
    Participating banks
    Merchants
19. Dispute Resolution Framework
20. Certifications:
    Payment Card Industry Data Security Standard (PCIDSS) Certification (if applicable)
    Payment Application Data Security Standard (PA-DSS) Certification or Compliance with CBN IT Standards for Solution Development (if applicable)
    Payment Terminal Service Aggregator (PTSA) of Payment Terminal Application Certification d) Other relevant certifications