A Payment Service Provider (PSP) licence in Nigeria is issued by the Central Bank of Nigeria (CBN) under the National Payments System Act and is mandatory for any company processing payments, deploying POS terminals, operating mobile wallets, or routing transactions within Nigeria’s financial system.
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- Issued by: Central Bank of Nigeria (CBN)
- Categories: PSSP (payment gateway), PTSP (POS terminals), MMO (mobile money), Switching Licence
- First step: CAC company registration in Nigeria, required before any CBN application
Selecting Your Payment Service Provider Licence in Nigeria: The Most Critical Step
Nigeria’s CBN operates four distinct PSP licence categories. Applying for the wrong one wastes months and costs you the full application fees. The most common mistake: fintechs apply for a PSSP licence when their business model actually requires an MMO, or vice versa.
Norebase maps your business model to the correct category before a single document is prepared. See our full guide to fintech licensing in Nigeria for the broader licensing landscape.
The 4 Core Categories of a Payment Gateway Licence in Nigeria
1. PSSP Licence Nigeria (Payment Solution Service Provider)
For payment gateway companies processing transactions between buyers and sellers. Does NOT permit holding customer funds or issuing wallets.
2. PTSP Licence Nigeria (Payment Terminal Service Provider)
For companies deploying POS terminals and managing agent banking networks.
3. MMO (Mobile Money Operator)
For companies operating mobile wallets and holding customer funds. This category carries the highest capital requirement.
4. Switching and Processing Licence
For companies routing and switching transactions between financial institutions.
Key Prerequisites for a CBN Payment Licence
Every PSP application starts with one non-negotiable prerequisite: your company must be registered with the CAC in Nigeria. The CBN will not process any application from an unincorporated entity.
Beyond incorporation, the CBN requires demonstrated capital adequacy with fully traceable sources of funds, a minimum of five directors, fit and proper assessments for all directors and key management, PCI-DSS compliance, and a documented AML/CFT framework aligned with the CBN’s 2026 Baseline Standards for Automated AML Solutions.
Step-by-Step Process to Acquire Your License
- Incorporate your Nigerian company with the CAC — Norebase handles this in 3–5 business days.
- Identify the correct PSP licence category for your business model — Norebase advises before any documents are prepared.
- Prepare capital — Demonstrate minimum paid-up capital with fully traceable documentation. The CBN conducts thorough due diligence on capital sources.
- Build technical infrastructure — Obtain PCI-DSS certification, implement ISO 27001 where required, and set up disaster recovery and business continuity systems.
- Prepare application documents — A three-year business plan with financial projections, AML/CFT framework, board CVs, fit and proper declarations, and IT security certifications.
- Submit CBN escrow deposit — Minimum capital must be deposited in a CBN-designated escrow account before application submission.
- Submit application to the CBN Payments System Management Department — The CBN reviews all files and may conduct a site inspection.
- Approval in Principle (AIP) — Issued after initial review. AIP validity is 6 months to complete Phase 2 requirements.
- Full licence issuance — Upon satisfactory completion of all Phase 2 conditions.
2026 Ongoing Compliance After Licensing
The CBN’s March 2026 Circular BSD/DIR/PUB/LAB/019/002 introduced mandatory Baseline Standards for Automated AML Solutions.
Every licensed PSP must now implement real-time KYC validation against BVN and NIN government databases, mandatory biometric checks with liveness detection, continuous transaction monitoring (not periodic batch checking), and real-time suspicious transaction reporting to the NFIU.
Ongoing compliance management is not optional; it is the absolute condition under which your licence remains valid.
Frequently Asked Questions
What is a PSP licence in Nigeria?
A Payment Service Provider (PSP) licence is an authorisation issued by the Central Bank of Nigeria (CBN) that permits a company to provide payment services within Nigeria’s financial system. It is mandatory for any company processing electronic payments, deploying POS terminals, operating mobile wallets, or routing transactions.
How long does it take to get a PSP licence in Nigeria?
The full process typically takes 5 to 10 months. The Approval in Principle (AIP) phase takes 3 to 6 months. The final licence issuance takes a further 2 to 4 months after AIP conditions are met. Application quality significantly affects the timeline.
What is the difference between PSSP and MMO in Nigeria?
A PSSP (Payment Solution Service Provider) licence allows companies to process payments but does not permit holding customer funds or issuing wallets. An MMO (Mobile Money Operator) licence is required for companies that hold customer funds and operate mobile wallets.
Can a foreign company get a PSP licence in Nigeria?
Yes, but a Nigerian company must first be incorporated with the CAC. CBN licences are issued to Nigerian legal entities. Foreign-owned companies are eligible but must meet the minimum capital requirements applicable to foreign-owned entities. Norebase handles both the incorporation and the CBN application.
Do I need CAC registration before applying for a PSP licence?
Yes. CAC registration is a mandatory prerequisite for every CBN licence application. The CBN will not process an application from an unincorporated entity. Norebase completes CAC registration in 3 to 5 business days.
What happens if I operate as a payment company in Nigeria without a PSP licence?
Operating as an unlicensed payment service provider in Nigeria violates the National Payments System Act and CBN regulations. Consequences include significant fines, forced shutdown of operations, and potential personal liability for directors. CBN enforcement has increased significantly in 2026.
Get your PSP licence in Nigeria, Norebase maps your category, manages your application, and keeps you compliant. Book a call today.