Types of Licenses
PSSP (Payment Solution Service Provider): online payments, gateways. 100M capital, 3-6 months. Most common fintech license. PSB (Payment Service Bank): deposits, transfers. 5B capital, 6-12 months. Super Agent: agency banking networks. 50M capital, 3-6 months. MMO (Mobile Money Operator): wallets, P2P transfers. 2B capital, 6-9 months. Regulatory Sandbox: test with 2,000 users. No capital, 3-4 months. Best entry point for most founders.
| License | Min. Capital | Timeline | Best For |
|---|---|---|---|
| PSSP | 100M | 3-6 mo | Payment gateways |
| PSB | 5B | 6-12 mo | Digital banking |
| Super Agent | 50M | 3-6 mo | Agency banking |
| MMO | 2B | 6-9 mo | Mobile wallets |
| Sandbox | N/A | 3-4 mo | Testing |
Share Capital Requirements
Minimum share capital must be paid-up, not just authorised. Money must be in the company's bank account and verifiable by CBN with bank statements and auditor confirmation. Personal loans to company do not count. CBN also expects working capital for 12 months of operations. Most successful applicants have 2-3 times the minimum available.
Application Process
Pre-application: Incorporate with CAC, prepare business plan and projections, develop technology infrastructure, appoint qualified board, implement AML/CFT, engage auditor. Submission: CBN online portal with CAC docs, business plan, capital evidence, director info, technology docs, AML/CFT policy, audited statements. Review: CBN checks completeness, does director due diligence, performs technology inspection, may request clarifications. Approval: approval-in-principle, then final license after conditions met.
Technology Infrastructure
Your infrastructure must meet CBN Technology Risk Assessment standards: primary and disaster recovery data centres in different Nigerian locations, redundant internet from two providers, encryption for data at rest and in transit, incident response plan, audit logging for all transactions, and regulatory reporting capabilities. Penetration testing by licensed third-party required, covering network, web, mobile, APIs, and databases. High-risk findings must be remediated before approval.
Timeline: 6 to 18 Months
Incorporation: 2-4 weeks. Technology development: 8-16 weeks. Application preparation: 2-4 weeks. CBN review and due diligence: 4-8 weeks. Technology inspection: 2-4 weeks. Final licensing: 4-8 weeks. PSSP total: 22-44 weeks (5-10 months). PSB total: 36-72 weeks (9-18 months). Accelerate by using Sandbox first, engaging experienced consultants, having infrastructure ready, submitting complete docs, and responding promptly to CBN.
Common Rejection Reasons
Documentary: incomplete applications, director background issues, unverifiable capital source, missing statements. Technology: inadequate infrastructure, failed inspection (security vulnerabilities or lack of redundancy), insufficient AML/CFT, unrealistic projections, poor disaster recovery planning. Mistakes: applying with bare minimum capital, submitting infrastructure docs without actual systems, directors without financial services experience, slow CBN query responses.
Frequently Asked Questions
What are the main fintech license types?
PSSP (payment, 100M), PSB (banking, 5B), Super Agent (agency, 50M), MMO (wallets, 2B), Sandbox (testing, no capital).
What is the minimum capital?
PSSP: 100M. PSB: 5B. MMO: 2B. Super Agent: 50M. Sandbox: none. All paid-up and verifiable.
How long does licensing take?
Sandbox: 3-4 mo. PSSP: 3-6 mo. PSB: 6-12+ mo. Total: 6-18 months depending on type.
Common rejection reasons?
Incomplete docs, inadequate capital, weak tech infrastructure, director issues, poor AML/CFT, failed tech inspection.