Nigerian apex bank issues framework for licensing super agents

The Central Bank of Nigeria (CBN) has issued a framework for licensing super-agents in furtherance of its mandate to develop the electronic payment system in the country. A super-agent is an agent that has been contracted by the principal and may thereafter subcontract other agents in a network, while retaining overall responsibility for the agency relationship.

The CBN had in December 2014 sent a circular to all deposit money banks, mobile money operators and switches, directing the affected operators to forward to his department, their inputs to the exposure draft on the licensing framework.

In accordance with the framework, any institution wishing to be licensed as a Super-Agent shall submit an application for approval to the CBN.

It added that each applicant is required to have a minimum Shareholders’ Fund, unimpaired by losses of N50 million (about $250,000) a minimum of 50 agents and must obtain a reference letter from a Financial Institution (FI) as part of its documentation for licence.

The CBN, however, added that the operating license of Super Agents shall be renewed every two years, subject to satisfactory performance.