Site icon AfricaReinvented

CBN excludes telcos as mobile money operators in Nigeria

What is Mobile Money Nigeria

What is Mobile Money Nigeria

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:

What do mobile money operators in Nigeria do?

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.

Follow us on Facebook and Twitter.

Exit mobile version