More Africa NewsMTN and Airtel set to boost Nigerian operations

April 28, 2022by myles0

There’s fascinating news from Nigeria regarding two of the country’s biggest operators, one of which is issuing a debt instrument for investment purposes, while the other has had further support for its banking ambitions.

MTN Nigeria has signed the issuance of N127 billion (US$305.7 million) series 1 and 2 commercial paper (CP) as part of a strategy to diversify its financing options. This is, apparently, the largest such debt instrument to be issued in the country.

According to Nigeria’s Guardian newspaper, the proceeds of the CP will go into boosting the operator’s working capital as well as serving other general corporate purposes.

This news comes hard on the heels of MTN’s strong performance in the recent 3.5GHz 5G spectrum auction and the granting of approval by the Central Bank of Nigeria (CBN) for MTN’s Momo Payment Service Bank Limited to commence operations.

But MTN won’t be alone in expanding its financial operations. Airtel Africa Plc says its subsidiary, Airtel Mobile Commerce Nigeria, has received final approval from the CBN to operate as a super-agent.

The company says that the licence allows it to create an agency network that can service the customers of licenced Nigerian banks, payment service banks and licenced mobile money operators in Nigeria.

The Cable news service says that, according to the CBN’s regulatory framework, super agents are responsible for monitoring and supervising the activities of agents, including the volume and value of transactions for each type of service they offer, as well as monitoring effective compliance with set limits.

Like MTN, Airtel has also been approved by CBN to operate a payment service bank via Smartcash Payment Service Bank Limited.

Source: Developing telecoms

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