According to the ex- Central Bank of Nigeria (CBN) Deputy Governor Mr. Tunde Lemo, the value of mobile money payment as at May 2014 has amounted to $1.7 billion (N271 billion) for 25 million transactions, confirming a growing adoption rate of alternative payment services in the country.
This shows an increase in mobile money transaction when compared with the figure posted in August 2013, which amounted to N10.1 billion ($61.9 million) for 1.6 million transactions. Mr. Lemo made this known while speaking at an event organized by Nigeria Deposit Insurance Corporation (NDIC), the agency responsible for maintaining Nigeria’s financial system stability.
The apex bank of Nigeria, issued a regulatory frame work for the operation of mobile payment services in the country in 2009, to reduce the Number of unbanked Nigerians. As at 2013 the apex bank granted licenses to 15 non-banking operators and 6 banks.
The Cash-Lite policy of the CBN was introduce in a bid to modernize Nigeria’s payment system; reduce the cost of banking services, drive financial inclusion, improve effectiveness of monetary policy, reduce the high security and safety risks, reduce high subsidy, foster transparency and curb corruption and ultimately meet the federal government’s Vision 2020.
The main Factor responsible for lack of traction of mobile money operations is inadequate capital investment on the part of mobile money operators.
“There is need for higher investment on agent network’s marketing than initially forecasted. N500 Million was the initial official requirement for mobile money operators but it has been revealed that 500million was inadequate”. This statement was made by Mr. Dipo Fatokun, Director, Banking and Payment System Department of the CBN.
Operators of Mobile money are complaining of lack of basic infrastructure such as power, telecommunication networks and others. There is also the difficulty in reaching the unbanked especially in remote areas as agents are not available.
According to MEF a global community for mobile content and commerce,15 per cent of mobile media users used mobile payments to pay for goods globally in 2013.
Africa continues to dominate mobile banking uptake with an average of 82 per cent of consumers engaged in this activity last year.
