.
In its bid to support the country’s economic recovery efforts and grow the financial market, the Central Bank of Nigeria (CBN), has sold N4.1 trillion worth of the instrument in the money market following last week’s introduction of 90-day special bills,
The apex bank has also announced new capital requirement and licence categorisation for payment service providers (PSP).
Director, Payment System Management Department, CBN, Mr. Musa Jimoh, in a circular posted on the apex bank’s website said the instrument shall not be accepted for repurchase agreement transactions with the CBN and shall not be discountable at the CBN window but said the instrument will qualify as liquid assets in the computation of liquidity ratio for deposit money banks.
Features of the special bills, introduced by the CBN, include zero-coupon, applicable yield at issuance to be determined by the CBN; the instrument will be tradable amongst banks, retail and institutional investors.
On the new capital requirement and licence categorisation for payment service providers, Jimoh put the new capital requirement for mobile money operations as well as switching and processing companies at N2 billion respectively. The circular was dated December 9, 2020,
The minimum capital requirement Payment Solution Services (PSS) was pegged at N250 million while that of super-agents is now N50 million.
