An in-depth analysis of Payment Service Payment Provider (PSP) licensing requirements in Nigeria under BOFIA 2020 and CBN Guidelines. Capital thresholds, compliance duties, and enforcement risks explained.
Introduction
Nigeria’s digital payments ecosystem has experienced exponential growth over the past decade. Fintech operators, switching companies, payment gateways, and mobile money platforms now form critical infrastructure within the financial system.
However, payment services in Nigeria are not lightly regulated commercial activities. They fall squarely within the supervisory jurisdiction of the Central Bank of Nigeria (CBN) and are governed principally by the Banks and Other Financial Institutions Act (BOFIA 2020), alongside sector-specific CBN regulations.
