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Mobile money operations have become increasingly important in Nigeria to maintain financial inclusion, robust transactions and promote economic efficiency.
The CBN has now introduced a framework to formally recognise these informal payment systems and take them mainstream.
It will serve as guidance for the functionalities of all participants in the mobile money services in Nigeria. These include regulators, mobile money operators, agents and consumers.
Mobile money service in Nigeria
There are two CBN-recognised models for the implementation of mobile money service:
- Under the bank-led mobile money service, the lead initiator is a bank or a consortium of banks. This model applies in scenarios where the bank operates on a stand-alone basis or in collaboration with other banks (s) and any other approved organization.
- The non-bank led model allows a corporate organization that isn’t a bank to deliver mobile money services to customers. The organsation must have a CBN license. They are also providers of mobile payment technology services to the subscriber.
What do mobile money operators in Nigeria do?
- E-Wallet creation and management
- E-money issuing
- Agent recruitment and management
- Pool account management
- Non-bank acquiring as stipulated in the regulatory requirements for non-bank merchant acquiring in Nigeria
- Card Acquiring
- 19 CBN designated banks for the collection of fees under NESS
- CBN Framework for Non-Bank Acquiring in Nigeria
- CBN updated licence requirements for mobile money operators
Mobile money operators in Nigeria do not grant any form of loans, advances and guarantees or even accept foreign currency deposits.
All Mobile Money Operators (MMOs) must have a CBN license and possess a Scheme Code from the NIBSS that is unique to its management interoperability.
They must also have the NCC unique shortcodes after approval of all telecommunication equipment.
Telcos in Nigeria have been excluded by the CBN from mobile payment services. This will enable the apex bank to have full control of monetary policy operations and minimise risks the CN framework said.
