A Commentary on the CBN Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria 2020

In furtherance of its mandate to promote financial inclusion and following the recent advancements

INTRODUCTION:

In furtherance of its mandate to promote financial inclusion and following the recent advancements concerning the interplay between Financial Technology (Fintech) and access to financial services in the Nigerian Banking Sector, the Central Bank of Nigeria (CBN) recently reviewed and updated the 2018 Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria (2018 Guidelines). The newly issued Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria 2020[1] (the 2020 guideline(s), New rules, Updated rules) now serves as the effective ruleset guiding the operationality of Payment Service Banks (PSBs) in Nigeria. Despite replacing the 2018 guidelines, the 2020 guidelines are not a complete overhaul of its predecessor, seeing that there exists a great deal of similarity between them. Nevertheless, there are a few changes that need highlighting.


BUSINESS CONDUCT (FAIR COMPETITION):

The 2018 guidelines only restricted related entities of a PSB from offering preferential treatment to its subsidiary. However, the updated guideline now stops parent, associate, or a related entity to a PSB from offering discriminatory and/or differential product or service pricing to other non-related entities, PSBs or any CBN licensed institution. And non-compliance in this regard could lead to the revocation of PSB’s license.[2] In addition to raising transfer pricing considerations, this update is a update to the 2018 rules in that it reiterates, albeit more expansively, the desire to promote fair competition in the Nigerian Banking sector.


REVOCATION OF LICENSE

Under the 2018 guideline revocation of license was stated to be “in line with the provisions of BOFIA[3] or through voluntary liquidation subject to the approval of the CBN”.[4] However, the 2020 guideline now provides that revocation of PSB license may follow:

a. Failure to comply with any of the provisions of the PSB Guidelines or other circulars and Guidelines issued by the CBN from time to time.
b. Failure to comply with the provisions of the BOFIA.
c. Voluntary liquidation by a PSB with the prior written approval of the CBN

Essentially, as opposed to its predecessor which only provides at best, generic instances for PSB license revocation; the 2020 guideline not only expands the grounds for revocation, it brings some form of clarity and specificity concerning the subject of license revocation.


ELIGIBLE PROMOTERS

The 2018 guideline did not list switching companies as eligible to promote a PSB. Thereunder, switching companies already having a record or data of the financial system operators were not allowed to own a PSB to prevent conflict of interest.[5] However, this is no longer the case. The 2020 guideline now expressly lists switching companies as eligible promoters of a PSB.[6] Mainly, this supports the possible increase in the establishment of PSBs and potentially, occasions the advancement of access to financial services in Nigeria.


SUPERVISION OF PAYMENT SERVICE BANKS

As an update to the 2018 guideline, the new ruleset encourages systemic synergy in the banking sector. Unlike the 2018 regulation, its successor now mandates all PSBs to interface with the Nigeria Inter-bank Settlement System (NIBSS) platform to promote interconnectivity and interoperability of operations within the Nigerian banking system.[7] Furthermore, it subjects to regulation the charging rates to be imposed by a parent, associate or related entity of any PSB on any CBN regulated institution and/or their customers on mobile payment and other payment platforms. These charges are now subjected to the “Guide to Charges by Banks, other

Financial and Non-bank institutions (where applicable) or subject to the prior written approval of the CBN as the case may be.[8]


CONCLUSION

Overall, the 2020 guidelines do not completely upturn the provisions of its 2018 predecessor. From the highlighted changes, one thing is however exact concerning the regulatory trajectory of the CBN. It is clear that the CBN’s demeanour towards the role of PSBs in promoting financial inclusion in Nigeria is expansive and enabling oriented.


References

[1] Issued August 27, 2020
[2] Para. 8 B 2020 Guidelines
[3] Banks and other financial Institution Act 1991 (as amended)
[4] Para 15 2018 Guidelines
[5] Para 5 2018 Guidelines
[6] Para 5 (vi) 2020 Guidelines
[7] Para 10.5 2020 Guidelines
[8] Para 10.6 2020 Guidelines


May 30, 2025
1.0. INTRODUCTION Over the years, sports have evolved beyond the receptive games to be played for either leisure or regional competition to global commercial enterprises. With events such as the FIFA World Cup, the UEFA Champions League, and the Olympics, one could argue for the gradual globalisation of sports. However, a deeper review of this process reveals the step-by-step adoption on technology and media in the said globalisation; and this in turn opens a whole world of issues around intricate productions involving intellectual property, sponsorships, media rights, and extensive contractual framework. What appears onscreen on-demand, is underpinned by meticulously crafted legal and business arrangements that enable cross border entertainment, while also embracing innovation, and advancement of commercial value as well as the mechanism for its protection. This article will comment on lifecycle of sports media and branding rights, providing a legal and commercial roadmap for international stakeholders, with a core mention of Nigerian legal framework. 1.1. The Games Before The Game: Where Rights Begin A sporting event seen on screen represents a combination and intersection of rights, agreements, and negotiations established long before the game itself. Elements such as match footage, player imagery, and pitch-side ads are meticulously claimed, licensed, or sold by stakeholders ranging from governing bodies like FIFA and CAF to individual clubs and players. Governing bodies like Fédération Internationale de Football Association (FIFA) or Confederation of African Football (CAF) often control broadcasting rights and official branding; Clubs handle their trademarks and merchandising, while players, depending on the jurisdiction and their contracts, may retain significant control over image use. In Nigeria, these rights are governed primarily by the Copyright Act 2022, the Trademarks Act, and general contract law. Globally, the WIPO Draft Broadcasting Organizations Treaty seeks to provide unified protection against transnational piracy, though its implementation remains pending. While legislation is germane, the allocation of rights determines visibility, which in turn dictates commercial value. For example, a sponsor may invest significant resources for their brand to appear prominently on a player’s jersey; if the broadcaster’s camera angles fail to display this placement effectively, disputes may arise over liability, highlighting the complexity of coordinating rights and visibility. 1.2. Broadcasting: The Soul of Sports Economics Broadcasting rights, legal licenses, which grant entities the authority to record, transmit, and distribute sporting events across television, radio, and digital plat- forms, form the backbone of the sports economy. These rights influence how and where sports are consumed, and more importantly, who profits from them. Broadcasting deals often determine the visibility of a sport or league. A single contract can propel a domestic competition to international fame or render it virtually invisible. Broadcasting contracts typically divide rights by territory, impose exclusivity, and adhere to strict timeline. SuperSport’s exclusive broadcasting rights for the English Premier League in Nigeria exemplify how market power and legal exclusivity intersect and give an indication of the high stakes involved. The high stakes of these deals invite fierce legal battles. Unauthorised broadcasting — even a short clip aired by a local station — can trigger swift legal action: injunctions, takedown notices, and litigation under intellectual property and broadcasting regulations. Nigerian courts are increasingly proactive in addressing violations, issuing in- junctions and damages to safeguard broadcasting rights. This was clear in the cases of Nigerian Copyright Commission v. Joseph Daomi (1) and Nigerian Copyright Commission v. Stanley Nwankwo (2) where the accused were both convict- ed for the illegal distribution of a broadcast signal. Notwithstanding these strides, the digital age has further complicated enforcement. Pirated content spreads rapidly through social media and messaging apps, outpacing legal remedies. Even the most robust broadcasting contracts may falter when faced with jurisdictional challenges or technological barriers. 1.3. The Screen as a Billboard-Sponsorship Rights and Deals Sponsorships are where legal rights and commercial branding meet. Imagine a football match with no logos, branded kits, or digital billboards — it would look almost unfamiliar. Sponsorships transform the broadcast screen into prime advertising opportunities. Sponsors don’t pay to support the game per se; they pay for visibility — to have their brand appear on screen, in post-match highlights, and across social media. Consequently, sponsorship contracts are heavily negotiated, and often include exclusivity clauses- preventing rival brands from sharing screen space-, morality clauses- allowing termination if an athlete damages the brand’s reputation- and 0n-screen guarantee clauses- ensuring brand visibility during key moments. Legal disputes may arise when a player’s personal sponsorship conflicts with the team or league’s official sponsors. These cases often require arbitration or court intervention to interpret competing contractual obligations. 1.4. Protection and exploitation of Image Rights: An Athlete’s Brand As athletes gain popularity, their image rights become valuable assets, especially when it comes to sports broadcasting and sponsorship deals. Athletes are no longer just competitors; they are influencer, brands, and public figures. Image rights — the legal right to control the commercial use of one’s identity — encompass name, likeness, signature, voice, and other personal at- tributes. 1. Trademark Registration Athletes can register their name, logo, or signature as trademarks under the Nigerian Trademarks Act.(3) This grants them exclusive commercial rights and legal recourse against unauthorised use. 2. Passing Off Under Nigerian common law, an athlete can sue for “passing off” where their image is used without consent in a way that causes reputational or financial harm. However, for such claim to succeed, they must show goodwill, misrepresentation, and damage (see NOKIA Corp v. Intercellular Nigeria Ltd ).(4) 3. Contractual Protections Image rights agreements which are sophisticated in nature often accompany endorsement and sponsorship deals, setting out the way and manner in which an athlete’s likeness can be used, as well as the duration. 2.0 Challenges and Emerging Legal Questions As the sports industry evolves, so do legal challenges. Key recurring questions include: Who owns broadcast footage — the league, broadcaster, or athlete? And to what extent does this ownership lie? How should courts resolve conflicts between personal image rights and league broadcasting rules? What remedies exist for athletes whose images are exploited online with- out consent? A limitation to image rights still lingers, while copyright under the Copyright Act 2022 protects original works like photographs and videos, it does not ex- tend to personal identity. For example, a photo of an athlete is owned by the photographer, not the athlete — unless transferred. 3.0 Conclusion In Nigeria and beyond, sports are no longer just about goals and glory, it has mutated into a high-stakes legal arena involving complex rights, cross-border contracts, and millions in sponsorship and broadcasting revenue. Whether it’s a shaky Facebook Live stream, a branded jersey, or a player’s endorsement deal, every piece of the game is backed by a legal contract. For stakeholders — athletes, sponsors, broadcasters, and regulators — under- standing and enforcing these rights is critical. While Nigeria’s legal framework is still evolving, robust use of intellectual property law, contract law, and com- mon law principles can offer meaningful protection. 55 NIPJD [FHC, 2012] MKD/CR/38 55 NIPJD [FHC, 2012] ABJ/CR/14/2011 Cap T13, Laws of the Federation of Nigeria 2004 (2003) 12 v Pt 836, 22