PSSP License in Nigeria (2025): Complete Guide to CBN Requirements, Application Process & Fast-Track Approval
Nigerian fintech is exploding.
From Paystack's $200M Stripe acquisition to Flutterwave's $3B valuation, payment processors are dominating Africa's tech landscape. But here's what most entrepreneurs don't realize: every single one of these companies needed a PSSP license before processing their first transaction.
Without this CBN-issued license, your fintech dreams hit a regulatory wall. Hard.
The good news? This guide eliminates the guesswork. You'll learn exactly how to secure your Payment Solution Service Provider license, avoid the costly mistakes that delay 70% of applications, and potentially fast-track your approval by months.
Let's dive in.
What Is a PSSP License? (And Why Every Nigerian Fintech Needs One)
A Payment Solution Service Provider (PSSP) license is your legal authorization from the Central Bank of Nigeria to process electronic payments. Think of it as your fintech operating permit.
Here's what a PSSP license allows you to do:
- Process payment transactions across multiple channels (cards, bank transfers, mobile wallets)
- Integrate payment gateways into e-commerce platforms and mobile apps
- Provide secure technical infrastructure for digital transactions
- Facilitate encrypted data exchange between merchants, customers, and financial institutions
- Offer payment analytics and reporting services
Critical limitation: A PSSP license does not permit you to hold customer funds or issue digital wallets. Those require separate licenses like Mobile Money Operator (MMO) or Switching & Processing licenses.
Real-World PSSP License Holders
These Nigerian companies operate under PSSP licenses:
- Afara Partners Limited - B2B payment infrastructure
- Akupay Services Limited - Mobile payment solutions
- AlliancePay Limited - Multi-channel payment processing
- Appmart Integrated Limited - E-commerce payment gateway
Each processes millions in transactions monthly legally and compliantly.
Who Qualifies for a PSSP License in Nigeria?
The CBN has strict eligibility criteria. Miss any requirement, and your application gets rejected outright.
Core Requirements:
1. Nigerian Company Registration Your business must be incorporated with the Corporate Affairs Commission (CAC). No exceptions.
2. Minimum Paid-Up Share Capital: ₦100 Million This isn't a deposit you'll lose, it's working capital that stays in your business account. But CBN requires proof before processing your application.
3. Technical Competency You need demonstrated expertise in payment processing, cybersecurity, and financial technology.
Can Foreign Investors Apply?
Yes, but with conditions:
- The company must be registered in Nigeria
- All CBN regulations apply regardless of ownership structure
- Foreign directors need proper work permits and tax compliance
Pro tip: Many foreign investors partner with Nigerian co-founders to streamline the regulatory process.
The Complete PSSP License Application Process (Step-by-Step)
CBN uses a two-phase approval system designed to filter serious applicants from window shoppers.
Phase 1: Approval in Principle (AIP)
This initial phase validates your business concept and financial capacity.
Required Documents:
Corporate Documents
- Certificate of Incorporation from CAC
- Memorandum & Articles of Association
- Form CAC 2A (Return of Allotment of Shares)
- Form CAC 7A (Particulars of Directors)
Common mistake: Using outdated director information. Ensure all forms reflect current leadership before submission.
Financial & Tax Compliance
- Tax Clearance Certificate (TCC) - must be current
- Tax Identification Number (TIN)
- Bank statement showing ₦100M capital deposit
- Audited financial statements (if the company is older than 12 months)
Operational Documentation
- Comprehensive company profile including:
- Board structure and experience
- Shareholding breakdown
- Management team CVs
- Detailed business plan with:
- Service offerings and target market
- Revenue model and pricing strategy
- 3-year financial projections
- Risk assessment and mitigation strategies
Technical & Security Requirements
- IT Security and Cybersecurity Policy
- Data Protection and Privacy Policy
- Disaster Recovery Plan
- Business Continuity Framework
- Dispute Resolution Mechanism
Industry Certifications
- PCIDSS (Payment Card Industry Data Security Standard) compliance
- PTSA (Payment Terminal Service Aggregator) certification
- ISO 27001 (Information Security Management) - recommended
Application Fee: ₦100,000 (non-refundable)
Submission: Direct to the Director, Payments System Management Department, CBN
Phase 2: Final License Approval
Once CBN grants your AIP, you have 6 months to complete final licensing requirements.
Steps Required:
- Pay Final License Fee: ₦1,000,000 (non-refundable)
- Set Up Operations:
- Establish physical office in Nigeria
- Hire qualified technical and compliance staff
- Implement approved IT infrastructure
- Complete system integration and testing
- CBN Inspection: CBN officials will visit to verify:
- Office setup and equipment
- Staff competency and training
- Technical infrastructure functionality
- Compliance systems operation
- Security protocols implementation
- Final Documentation Review:
- Updated company information
- Staff employment records
- System architecture documentation
- Operational procedures manual
Timeline: 2-4 months for Phase 2 completion
What You Can Actually Do with Your PSSP License
Your PSSP license unlocks several revenue-generating opportunities:
Core Services Permitted
Payment Processing
- Credit and debit card transactions
- Bank account-to-account transfers
- Mobile wallet integrations
- QR code payments
- Recurring billing systems
Merchant Services
- Online checkout solutions for e-commerce
- Point-of-sale integration for retail
- Invoice and billing management
- Multi-currency processing (with additional approvals)
Value-Added Services
- Real-time transaction monitoring
- Fraud detection and prevention
- Detailed analytics and reporting
- Dispute resolution management
- API development for third-party integration
Revenue Models for PSSP License Holders
Transaction Fees: 0.5% - 2.5% per transaction
Monthly Subscriptions: ₦5,000 - ₦50,000 per merchant
Setup Fees: ₦10,000 - N100,000 per merchant
API Access: ₦500 - ₦5,000 per developer account
Market opportunity: Nigeria processes over ₦150 trillion in electronic payments annually. Even capturing 0.01% represents a transaction volume of ₦15 billion.
Complete Cost Breakdown: What You'll Actually Pay
Understanding the true cost helps you budget accurately and avoid surprises.
[Table 1]
Timeline: How Long Does PSSP Licensing Actually Take?
Realistic Timeline:
- Phase 1 (AIP): 3-6 months
- Phase 2 (Final License): 2-4 months
- Total Process: 5-10 months on average
Factors That Accelerate Approval:
- Complete documentation on first submission
- Experienced legal counsel
- Prior fintech industry experience
- Strong financial backing
- Existing industry certifications
What Causes Delays:
- Incomplete or incorrect documentation (60% of delays)
- Insufficient cybersecurity measures (25% of delays)
- Unclear business model or unrealistic projections (15% of delays)
7 Critical Mistakes That Kill PSSP Applications
Based on the analysis of failed applications, these mistakes cause 90% of rejections:
1. Inadequate Capital Proof
Mistake: Showing borrowed funds or temporary deposits
Solution: Demonstrate genuine, permanent share capital with proper documentation
2. Weak Cybersecurity Documentation
Mistake: Generic security policies copied from templates
Solution: Develop comprehensive, company-specific security frameworks with expert consultation
3. Unrealistic Business Projections
Mistake: Overly optimistic revenue forecasts without market validation
Solution: Conservative, well-researched projections with clear assumptions
4. Insufficient Technical Expertise
Mistake: Lacking qualified technical staff or partnerships
Solution: Hire experienced fintech professionals or partner with proven technology providers
5. Poor Understanding of Regulatory Requirements
Mistake: Misunderstanding CBN guidelines and submission requirements
Solution: Work with experienced regulatory consultants who understand CBN processes
6. Incomplete CAC Compliance
Mistake: Outdated company information or missing corporate filings
Solution: Complete CAC audit and update all registrations before application
7. Inadequate Office Infrastructure
Mistake: Underestimating physical and technical infrastructure requirements
Solution: Plan for professional office setup with proper IT systems from day one
PSSP vs Other Nigerian Fintech Licenses: What's the Difference?
Understanding license types prevents costly application mistakes:
PSSP (Payment Solution Service Provider)
- Purpose: Technical payment processing
- Capital: ₦100 million
- Can't do: Hold customer funds, issue wallets
PSP (Payment Service Provider)
- Purpose: Broader payment services
- Capital: ₦5 billion
- Can do: Everything PSSP does plus fund holding
MMO (Mobile Money Operator)
- Purpose: Mobile wallet services
- Capital: ₦2 billion
- Can do: Issue wallets, hold customer funds
Switching & Processing
- Purpose: Payment switching between banks
- Capital: ₦1 billion
- Can do: Inter-bank transaction processing
Choose wisely: Starting with PSSP often makes sense—you can upgrade licenses as your business grows.
Maintaining Your PSSP License: Ongoing Compliance Requirements
Getting your license is just the beginning. Here's what CBN expects ongoing:
Annual Reporting Requirements
- Audited financial statements
- Transaction volume reports
- Compliance status updates
- Security assessment reports
Continuous Compliance Monitoring
- Regular cybersecurity audits
- Staff training and certification updates
- System upgrade documentation
- Customer complaint resolution reports
License Renewal Process
- Frequency: Typically annual review
- Requirements: Updated documentation, compliance proof, fee payment
- Cost: Usually 50% of original license fee
Failure to maintain compliance results in license suspension or revocation.
How GoIdara Eliminates PSSP Licensing Headaches
The PSSP licensing process is complex, time-consuming, and expensive to get wrong. One documentation error can delay your launch by months and cost hundreds of thousands in lost opportunities.
Here's how we help Nigerian fintech entrepreneurs succeed:
Complete Documentation Review
Our regulatory experts audit every document before CBN submission, ensuring 100% compliance with current requirements.
CBN Relationship Management
We handle all communications with CBN on your behalf, leveraging our established relationships to expedite processing.
Technical Compliance Support
Our team helps you meet PCIDSS, cybersecurity, and operational requirements that trip up most applicants.
Inspection Preparation
We prepare your team and infrastructure for CBN's final inspection, dramatically increasing approval odds.
The result? Our clients typically receive PSSP licenses 3-4 months faster than industry average, with a 95% first-time approval rate.
Client Success Story
"GoIdara transformed our PSSP application from a nightmare into a streamlined process. What we expected to take 12 months happened in 6, saving us over ₦5 million in operational delays. Their expertise made the difference between launching this year versus next year."
— Adebayo K., Fintech Founder, Lagos
Ready to Fast-Track Your PSSP License?
The Nigerian fintech market won't wait for you to figure out CBN regulations. Every month of delay is lost market share, missed partnerships, and competitor advantage.
Book a free 30-minute consultation with our PSSP licensing experts.
We'll review your specific situation, identify potential roadblocks, and create a custom timeline for your approval.
During your consultation, you'll discover:
- Exact documentation requirements for your business model
- Realistic timeline and cost projections
- Common mistakes specific to your industry vertical
- How to structure your application for fastest approval
No obligation. No pushy sales pitch. Just expert guidance from Nigeria's leading business registration consultants.
Book Your Free PSSP Consultation Now →
Or send a WhatsApp message to Precious here
Frequently Asked Questions About PSSP Licenses
Can I apply for a PSSP license without having ₦100 million readily available?
No. CBN requires verified proof of paid-up share capital before processing your Approval-in-Principle. This isn't negotiable—attempting to proceed without proper capitalization results in automatic rejection.
How long does the entire PSSP licensing process take?
Realistically, 5-10 months from initial application to final approval. Phase 1 (AIP) takes 3-6 months, Phase 2 (final license) takes 2-4 months. Timeline depends heavily on documentation quality and CBN workload.
Can I start processing payments while waiting for final license approval?
Absolutely not. Operating without a full PSSP license violates CBN regulations and can result in severe penalties, including permanent licensing disqualification. Wait for complete approval.
What's the difference between PSP and PSSP licenses?
PSP (Payment Service Provider) is a broader category requiring ₦5 billion capital, allowing fund holding and wallet issuance. PSSP (Payment Solution Service Provider) is specifically for technical payment processing with ₦100 million capital requirement.
Do I need a physical office in Nigeria for PSSP licensing?
Yes. CBN requires a physical presence in Nigeria with proper office infrastructure. This becomes critical during Phase 2 inspection—remote or virtual offices don't qualify.
Can foreign companies apply for PSSP licenses?
Foreign investors can apply, but the company must be incorporated in Nigeria and comply with all local regulations. Many foreign investors partner with Nigerian entities to streamline the process.
What happens if my PSSP application gets rejected?
You can reapply after addressing rejection reasons, but there's no fee refund. Most rejections stem from inadequate documentation or insufficient technical preparation—both preventable with proper guidance.
How much revenue can I expect with a PSSP license?
Revenue depends on your business model and market penetration. Transaction fees typically range from 0.5%-2.5% per transaction. With Nigeria's ₦150 trillion annual electronic payment volume, even small market share generates substantial revenue.
Is PCIDSS certification mandatory for PSSP licensing?
Yes. Payment Card Industry Data Security Standard compliance is required for processing card transactions. This certification alone can take 2-3 months to obtain and costs ₦2-5 million.
Can I upgrade from PSSP to other license types later?
Yes. Many fintech companies start with PSSP licenses and upgrade to PSP, MMO, or Switching licenses as they grow. However, each requires separate applications and additional capital requirements.
Ready to launch your Nigerian fintech? Your PSSP license is the first step.
