Mobile Banking in Nigeria: Transactions Reach N430 Billion with 58 Million Subscribers

Mobile Banking in Nigeria: Transactions Reach N430 Billion with 58 Million Subscribers

Mobile banking in Nigeria has risen to N430 billion, that’s over US$2 billion, and it continues to rise as we move into the year.

Within two years (2012-2014), a total of 15 million transactions on mobile devices have been made with 58 million subscribers.

Mobile banking scheme found its way into Nigeria in 2012.

CBNs Head of Payment System Policy and Oversight Division of Banking and Payments Department, Musa Itopa-Jimoh, made the disclosure in Katsina at a workshop.

He spoke on “Payments: Overview of Mobile Payments Services Framework in Nigeria.

The 2014 workshop was organised by the Nigeria Deposit Insurance Corporation (NDIC) for finance correspondents and Business Editors. 

 Success of mobile banking in Nigeria

Mr. Itopa-Jimoh attributed the success of mobile money services in Nigeria to the efforts of over 78,000 agents and 21 licensed mobile money operators.

The partnership of network providers and banks will further enhance money on the go.

The recent launch of AccessMoney on November 2014 by Access Bank Plc in collaboration with Airtel Nigeria is a boost to financial services on phones. 

Mobile banking in Nigeria: CBN Licensed Mobile Money Operators

Here are 19 out of 21 mobile money operators certified by the Central Bank of Nigeria to operate mobile money services. The list shall be updated soon.

  1. GTMobileMoney by Guarantee Trust Bank
    2. ReadyCash by Parkway Projects
    3. UMo by AfriPay
    4. FirstMonie by First Bank of Nigeria
    5. PocketMoni by eTranzact
    6. Paga by PagaTech
    7. Fortis Mobile Money by Fortis Micro Finance Bank
    8. Stanbic IBTC mobile money
    10. Virtual Terminal Network
    11. PIDO operated by PayCom
    12. Cellulant
    13. Teasy Mobile
    14. Mimo operated by Mkudi (M for Mobile, kudi in Hausa language means money)
    15. EazyMoney by Zenith Bank
    16. My wallet by FETS
    17. QikQik operated by Eartholeum
    18. Ecobank Mobile Money
    19. AccessMoney by Access Bank Plc in collaboration with Airtel Nigeria
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Mobile Banking in Nigeria and her Position in Africa

The latest figure by the Nigerias apex bank is an attestation to a report released early this year by mobile trade association, MEF in partnership with On Device Research which placed Nigeria as number three in Africa in mobile banking.

Nigeria had 76 per cent (76%) of mobile banking engagement rate.

Kenya led with 92 per cent (her M-PESA is the backbone of mobile money services), while South Africa with 78 per cent came second.

In Africa, the mobile-only culture means the mobile money account is the bank account,” the report said.

“Our 2014 Mobile Money Insight Report clearly highlights that early adopters of mobile money are key to accelerating the growth of mobile commerce. This is true both in terms of their propensity to spend more on individual purchases and their likelihood to engage with a wider array of mobile services. In many markets, mobile money has already hit the mainstream, with Africa leading the way. Faster mobile networks will only advance its adoption further worldwide,” Chief Executive Officer of MEF, Rimma Perelmuter said.

Tools of Efficient Mobile Banking in Nigeria

Transactions on mobile devices can’t work in isolation without the support of some other tools. These include

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 Network Speed:

If mobile banking is available without good network, users would only be frustrated while transacting. MEF in its report highlighted the importance of network speed to the growth of mobile money.

The finding showed that 25 per cent of users said they didn’t use mobile payments because of slow network speeds.

While some network providers are still battling with 3G connections, 4G connections are already being used by some African countries and 5G is already being tested in other countries.

Network providers in Nigeria need to improve on their services in order for the projected success of mobile money services to be feasible.

Mobile phone capability:

You don’t really need to have iPhone 6 plus to carry out financial activities on your phone, but a simple internet connection is enough to enjoy the benefit of mobile money.

Exploring the capability of your phone.

How far you are able to explore the potentials of your mobile device goes a long way in using it for financial services thereby turning it to a bank in your pocket.

Security and Trust.

Using mobile money service requires trust and security, and I believe that’s one of the challenges some of the providers are still facing in terms of adoption, particularly non-banking ones.
But the CBN has assured users that safety and effectiveness of mobile payments services in Nigeria would be one of its priorities.

“We take our oversight responsibility seriously to ensure that deposits in the mobile payments system are safe and transactions are securely executed,” CBN representative said.

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Which of the mobile money services do you use?

What have been the major impediments of using mobile money services on your phone?

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