Mobile money services in Nigeria, won’t be driven by Telcos – CBN

CBN guidelines on disposal of non-permissible income
Mobile money services in Nigeria, won't be driven by Telcos - CBN
Godwin Emefiele, CBN Governor

 

Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has said it will not adopt the model in which telecommunications companies are the drivers of mobile money services. in its recently published regulatory framework for mobile money services, saying

It disclosed this in its recently published regulatory framework for mobile money services titled, ‘Regulatory framework for mobile money services In Nigeria’.

According to the bank, “This regulatory framework addresses business rules governing the operation of mobile money services, and specifies basic functionalities expected of any mobile money service and solution in Nigeria.

“It identifies the participants and defines their expected roles and responsibilities in providing mobile money services in the system. In addition, it sets the basis for the regulation of services offered at different levels and by the participants.

“The CBN recognises the importance of Mobile Network Operators in the operations of mobile money services and appreciates the criticality of the infrastructure they provide. However, the telco-led model (where the lead initiator is an MNO) shall not be operational in Nigeria.

“Its exclusion will enable the CBN have full control of monetary policy operations, minimise risks and ensure that the offerings of financial services are driven by organisations that have been licensed by the CBN to do so.”

The CBN in the framework said only two models will be implemented in the provision of mobile money services in the country. Bank-led: bank and/or its consortium as lead initiator and non-bank-led: involving a corporate organisation duly licensed by the CBN as lead initiator.

The CBN and the Nigerian Communications Commission will be the regulators for this new framework, while the telecommunication companies will provide the infrastructure.

 

Author: Greg