Mobile phone operators MTN and Airtel have both received partial approval from the Central Bank of Nigeria to operate mobile payments in the country.

This comes three years after the CBN initially said it would allow non-financial companies to apply for mobile banking licences.

“A final approval which is subject to the fulfilment of certain conditions will be issued to the Telcos within six months,” a statement from both operators read.

Under the guidelines, mobile network operators are allowed to provide financial services to millions of unbanked Nigerians. However, they can do so only as Payment Service Banks (PSBs) and through a subsidiary separate from their core operations.

PSBs accept deposits from individuals and small businesses, offer payment and remittance services, and other activities prescribed by the central bank.

This could make a huge difference for Nigeria’s 38 million unbanked adults – about 36% of the total adult population in the country.

Foreign Airlines operating in and out of Nigeria have taken their protest to the Central Bank of Nigeria (CBN) over difficulties in repatriating accumulated funds, now in excess of $800 million (N328.8 billion).

The airlines, about 30 in number, expressed displeasure over rising difficulties in repatriating earned revenue through an official window approved by the government.

Meanwhile, the fallout of the development is already affecting consumers as foreign airlines have adjusted the Rate of Exchange (RoE) from N411to N450, raising airfares some notches.

Though the repatriation is not peculiar to Nigeria, operating airlines have lately been having difficulties getting the dollar equivalent of tickets sold in Naira, for remittance to their home countries.

The International Air Transport Association (IATA) had in August, said approximately $963 million in airline funds are being blocked from repatriation in nearly 20 countries, including Nigeria that then owed $143.8 million.

Telecommunication operators in Nigeria like MTN wants as much as 75 per cent cut and a validity period extension by 10 years.

Wireless operators want a reduction in the reserve price the Nigerian Communications Commission (NCC) has fixed for licensing at an upcoming key auction expected to set in motion the launch of 5G technology in Nigeria.

The price, which is in the neighbourhood of N75 billion ($197.4 million), will be adopted for the bid round, said Oluwatoyin Asaju, director of NCC’s spectrum administration unit, in Lagos at a consultative session for industry think tank on Thursday.

Nigeria is ramping up efforts to widen broadband access in its citizenry and has revealed a grand ambition to hit a target of 90 per cent by 2023 even though penetration is still mid-way through at 45 per cent.

More than three out of every five Nigerians are aged 35 years and below, and substantially digitally enabled, making the prospect of massive acceptance of IT services particularly promising for its estimated 216 million people.

MTN Nigeria recommended the reserve price be lowered to $50 million during deliberations on the draft information memorandum, also requesting an extension of the licence validity period to 20 years from the proposed 10 years.

Its rival Airtel made a similar call for a downward review of the cost of licensing, citing current economic realities in the business environment.

“5G technology does not only offer enhanced broadband and ultra-reliable low latency communications,” said Umar Garba Danbatta, the chief executive officer of NCC, who joined the talk virtually.

“It also provides massive machine type communications, where lots of devices will seamlessly connect and interact independently with the Internet without human intervention,” Dandatta added.

Stakeholders said the success of the initiative will hinge on making the process competitive.