Telecom
Towards Cashless Societies: Mobile Money Leading the Way in West Africa
Lauded as one of the 21st century’s most transformative financial tools, mobile money has significantly inspired financial inclusion by providing previously unbanked and underbanked populations the access to essential financial services.
This innovation empowers individuals and businesses with the tools to send and receive remittances, make seamless payments for goods and services and save money, while ultimately contributing to faster economic growth and development across the region.
Research from GSMA’s The State of the Industry Report on Mobile Money 2024 reveals that over the past decade, increased adoption of mobile money services has significantly improved GDP. This has contributed an impressive USD 600 billion to the economies of countries utilising these platforms. This finding reaffirms the transformative economic potential of mobile money as it drives entrepreneurship, increases consumer spending and enhances overall economic activity.
The popularity of mobile money in East Africa has not only redefined the scope of financial inclusion but has also spurred significant economic growth and altered consumer behaviour within and outside the region. Specifically, the success of platforms like M-Pesa has provided a powerful blueprint, easily demonstrating how mobile money can democratise access to financial services and drive socio-economic development.
This SeerBit whitepaper casts a deep look at mobile money’s regional adoption trends, its economic contributions and the challenges of scalability, while advocating for urgent, collective action to unlock mobile money’s benefits, paving the way for a more connected and prosperous future in the region.
Rise of Mobile Money Adoption Across West Africa
The Macroeconomic Performance and Outlook (MEO) report developed by the African Development Bank Group notes that Africa will account for 11 of the world’s 20 fastest-growing economies in 2024 – with the continent set to remain the second-fastest-growing region after Asia.
Mobile money adoption is playing a significant role in this growth.
In the 10 years leading up to 2022, mobile money contributed USD 600 billion to the GDP of countries with a mobile money service, according to the GSMA’s The State of the Industry Report on Mobile Money 2024 (SOTIR 2024).
Spotlighting West Africa in particular, which currently has a population of over 451 million (United Nations), West African Economic and Monetary Union (WAEMU) countries have seen increased financial account ownership since 2014, with mobile money accounts witnessing increased adoption and usage. On average, 41 percent of adults in the WAEMU have an account with a bank or similar institution or with a mobile money service. Senegal has the highest account ownership rate at 56 percent, but the country still falls 15 percent below the developing economy average.
In Nigeria, where a majority of adults remain unbanked or underserved due to the limitations of traditional banking infrastructure, the country’s dynamic fintech sector is bridging those gaps with mobile money, digital payment platforms and wallets to reach underserved populations in rural and remote areas. While digital transactions have grown, they are yet to exceed cash-based transactions. A recent GSMA report reveals that Nigeria’s mobile money account ownership increased to 22 percent among all adults that are aware of mobile money and have used a mobile phone in 2022 and the number of adult account owners who have used mobile money in Nigeria in the last 30 days increased to 80 percent – this was up from 61 percent in 2021.
Global Findex data suggests there are opportunities to accelerate ownership and usage through digital financial enablement.
What You Should Know About Mobile Money in West Africa
Here are some interesting things to note about the adoption and effectiveness of mobile money in West Africa.
Mobile money is bridging the financial inclusion gap in West Africa
If there is one thing industry critics can agree on, it is that mobile money services continue to play a critical role in financial inclusion across the continent, providing a secure and convenient platform for transactions, bill payments and access to banking services, highlighting the demand for accessible financial services where traditional banking infrastructure is minimal and as such unable to address the needs of the populace.
Mobile money has had a gender-equalising effect in most countries, except for Côte d’Ivoire, which has a 13 percent gap due to males having adopted mobile-based accounts at a higher rate.
Mobile money has also enabled more women to save money than other financial services. For instance, in Senegal, only six percent of women saved using a traditional bank or other financial accounts in 2021, whereas four times more women chose mobile money to save.
Enabling regulation has led to greater access to and use of mobile money
As an important solution in the provision of basic transactional financial services to populations largely underserved by formal financial institutions, mobile money services are subject to a range of regulations.
It has generally been accepted by regulators, mobile money providers and investors that regulation has a material impact on mobile money adoption and usage. Regulation affects the ease with which new customers can enrol to a mobile money service and the range of services offered, as well as the commercial and operating environment for providers and investors.
Fintechs are instrumental to making mobile money a success in West Africa
Fintech companies in Nigeria are collaborating with traditional banks to tailor services to the evolving needs of Nigerian consumers and businesses. These offerings pair a range of traditional banking products such as savings accounts and bill payments with innovative tech solutions such as lending platforms, virtual investment advisors, digital insurance products, and digital remittance solutions.
Fintech platforms such as SeerBit offer more widely accessible financial products that can help close the unmet credit demands of micro, small and medium-sized businesses in the country. A 2022 IFC Nigerian SME Finance Market report estimates this is around 13 trillion Nigerian naira (equivalent to USD 9 billion today). These products include invoice financing services, supply chain finance solutions, inventory management systems, data analytics tools, digital capital investment, digital assets, neo-banking and digital accounting and bookkeeping tools tailored to their needs.
West Africa Making a Bold Statement With Mobile Money
Despite several infrastructural, economic, social and regulatory challenges in West Africa, countries in the region are making meaningful strides to address all these areas. This is evidenced by countries in the region leading the mobile money adoption race globally. In 2023, over a third of new registered and active 30-day accounts globally were from West Africa and these accounted for transaction volumes of 19 billion, an increase of 40 percent from the previous year and transaction values of USD 347 billion, also up 40 percent from the previous year.
Mobile money adoption in West Africa is booming, with the GSMA reporting over 500 million active mobile money accounts in the region by 2023. The World Bank highlights that mobile money transactions are growing rapidly, driven by increased smartphone penetration and financial inclusion efforts. Despite this progress, challenges persist, including regulatory hurdles and infrastructure limitations. According to the GSMA, over 40 percent of the region’s population remains unbanked, which hampers broader adoption. Additionally, cybersecurity threats and digital literacy gaps could inhibit future growth. Addressing these challenges will be crucial for sustaining the upward trajectory of mobile money in West Africa.
Towards Cashless Societies
In January 2024, Bloomberg reported that six of the top 10 performing economies in the world were predicted to come from Sub-Saharan Africa. The continent’s youthful population is also an enormous opportunity for economic growth.
Africa also has the advantage of having fewer legacy challenges to deal with and is, therefore, adopting digitised solutions faster out of necessity.
Today’s technologies are a good indicator of the scale and speed at which technology is transforming traditional socioeconomic sectors across the continent. African countries are implementing key policies to accelerate digital payments adoption, creating a competitive market with solutions tailored to the underserved.
How Can Africa Further Accelerate the Growth and Adoption of Mobile Money?
Connectivity is critical.
Widespread internet access would enable card-based transactions at merchant/agent locations. Offline solutions and strong interoperability policies are crucial for addressing connectivity challenges.
What’s the Future Outlook on Mobile Money Adoption?
In two words: Quite positive.
Beyond improving financial inclusion and access to other digitally enabled services, the adoption, use and growth of mobile money are now reflected in macroeconomic indicators – an increase in mobile money adoption will inevitably lead to a rise in GDP.
The emergence of mobile money as an alternative cashless currency has fundamentally changed the way people access financial services, enabling millions of unbanked individuals to store and manage money through their mobile devices.
However, despite this progress, a significant portion of Africa’s population remains outside the traditional banking system, facing limited and costly banking services.
Ease in regulation has played a key role in driving mobile money adoption in West Africa. As mobile money continues to gain traction, it is crucial that the regulatory frameworks in many West African nations evolve to meet dynamic needs. Effective regulations are essential to protect consumers while encouraging new entrants and consistent innovation in the market.
By establishing a robust regulatory environment, African countries will ensure that mobile money remains a powerful tool for economic empowerment and financial inclusion, ultimately driving sustainable development across each region.
Download the full report for free here.
MTN Nigeria has marked 25 years of commercial operations, with Karl Toriola, chief executive officer, saying the company began operating in the country at a time when telecommunications access was severely limited.
Toriola said that a quarter of a century ago, making a phone call was a privilege few Nigerians could afford.
People queued at public telephone booths and centres, travelled long distances to deliver messages, and sometimes waited weeks for letters to arrive, he said, noting that a mobile phone was then beyond the reach of most.
Today, the company connects more than 90 million people across Nigeria, a figure MTN says reflects its role in building the infrastructure behind the country’s shift to a data-driven economy.
MTN entered Nigeria in 2001 following the GSM liberalisation carried out by the Nigerian Communications Commission (NCC), at a time when mobile telephony was still a luxury reserved for a privileged few.
Toriola said the milestone was about more than subscriber numbers.
Businesses have been built, families have stayed connected across distances, students have gained access to knowledge, and creators have found audiences beyond Nigeria’s borders, he said, crediting the wider telecommunications ecosystem for enabling entire new industries to emerge.
The company also pointed to its role beyond direct connectivity.
MTN has helped build a wider value chain of SIM registration agents, tower contractors, retail distributors, fintech partners and digital developers that now supports millions of livelihoods in Nigeria.
Toriola thanked MTN Nigeria’s customers, saying their trust had allowed the company to expand its community investments through the MTN Foundation, which has supported health, education, youth development and economic empowerment programmes.
Looking ahead, the CEO acknowledged that significant connectivity gaps remain, with millions of Nigerians still needing access to reliable, affordable and inclusive digital services.
He said greater digital inclusion would be a central priority for the company’s next chapter, adding that the anniversary marks both a celebration of the past 25 years and a renewed push to expand digital access for the country’s young and growing population.
“We’ve come a long way. And we are only getting started,” Toriola said.
The anniversary comes as MTN Nigeria continues to navigate rising operating costs tied to Nigeria’s unreliable power supply.
Where the national grid is unreliable, the company and its infrastructure partners have had to rely on diesel generators, batteries, solar systems and other backup power solutions, making network operating costs highly sensitive to fluctuations in diesel prices.
Telecommunications subscribers under the umbrella of the National Association of Telecoms Subscribers (NATCOMS), has handed telecommunications operators in the country September deadline to improve network quality or face legal action.
Deolu Ogunbanjo, president, NATCOMS, said that subscribers have endured deteriorating network services despite repeated interventions, warnings, and sanctions by the Nigerian Communications Commission (NCC).
As reported by BusinessDay, Ogunbanjo, noted that if the situation fails to improve through regulatory intervention, NATCOMS will seek justice through the courts by the end of the third quarter.
The ultimatum comes as rising data consumption, subscriber migration, and growing demand for mobile services place severe pressure on network infrastructure across parts of the country.
The NCC stated that mobile operators have offered compensation to more than 75 million subscribers for poor network quality following a regulatory directive requiring restitution in locations where performance fell below required standards.
The regulator is conducting an independent review to determine whether all eligible subscribers received proper compensation.
The compensation scheme, provided through automatic airtime credits for verified service failures dating back to November 2025, requires no individual claims from consumers.
For many subscribers, however, airtime credits do little to offset the broader economic and personal toll of unreliable connectivity.
Emeka Douglas, a subscriber, recounted how poor network quality nearly turned a medical emergency into a tragedy when he was unable to transfer funds to a hospital during his wife’s surgery.
Douglas noted that his brother in the United States eventually sent funds directly to the hospital’s account after local banking channels failed.
Janet Okoye, a small business owner, said unreliable connectivity severely affected her business after service disruptions on her Airtel and Globacom lines led clients to cancel orders.
Teniola Adeyemi, a university student, highlighted dropped calls as a major concern, stressing that recent tariff increases ought to reflect in better service quality.
Grace Eze, an Abuja-based media professional, explained that fluctuating network connectivity once delayed a lead news story intended for her editor in Lagos, resulting in an official query over late submission.
Pressure on national networks is driven by both expanding subscriber numbers and rising usage intensity.
Active telephony subscriptions in Nigeria rose from 182.2 million in January 2026 to over 187 million by April, according to NCC data. MTN leads the market with 96.4 million subscriptions, followed by Airtel with 64.7 million and Globacom with 23.2 million.
Telecom
ipNX Collaborates with ICT Stakeholders on the Future of Fibre-to-the-Home in Nigeria @ ATCON Forum
ipNX Nigeria joined other stakeholders across the telecommunications ecosystem as they convened at the Association of Telecommunications Companies of Nigeria (ATCON) Critical Conversation Forum on Fibre-to-the-Home (FTTH) to deliberate on practical solutions to the challenges affecting broadband infrastructure deployment and the future of fibre connectivity in the country.
The forum, themed “Fibre to the Home in Nigeria: Addressing Challenges, Strengthening Standards and Ensuring Sustainable Deployment,” was held at the Radisson Blu Hotel, Lagos, and brought together representatives from government agencies, telecommunications operators, regulators, infrastructure providers, industry associations, and the media to foster dialogue around policies and collaborative actions needed to accelerate Nigeria’s broadband ambition.
Delivering the keynote address virtually, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, described Fibre-to-the-Home as a critical enabler of Nigeria’s digital future.
“FTTH is uniquely positioned to meet Nigerians’ next phase of data demand. The quality of our broadband will increasingly shape the competitiveness of our businesses, the growth of our digital industry and the opportunities available to our citizens,” he said.
Dr. Maida also stressed the importance of protecting telecommunications infrastructure, noting that damage to fibre networks carries significant economic consequences.
“We must uphold deployment standards. Nigeria needs fibre that is properly installed, properly documented, and properly protected.”
Speaking during the opening session, ATCON President, Mr. Tony Emoekpere, underscored the strategic importance of FTTH in achieving Nigeria’s broadband penetration targets while calling for greater public awareness around protecting communications infrastructure.
“This forum is critical because Fibre-to-the-Home is the technology that will enable the country to achieve full broadband penetration. We all depend on communication infrastructure, and it must be protected.”
Drawing a comparison with power infrastructure in the country, he added:
“If somebody comes to your neighbourhood to tamper with your transformer or power cables, everybody will come out. The same thing needs to apply for communications infrastructure. When we see people damaging fibre cables, we should raise an alarm.”
The forum also highlighted successful collaborative initiatives at the state level. Speaking on infrastructure management, Director-General of the Oyo State Infrastructure Management and Control Agency (OYSIMCA), Mr. Adebayo Akande, shared how the agency is addressing fibre theft, vandalism, and promoting shared infrastructure among operators.
He explained that encouraging operators to utilise common pole infrastructure along shared routes would reduce unnecessary duplication, minimise infrastructure damage, improve urban aesthetics, and optimise investment across the sector.
Similarly, Managing Director of the Edo State Information and Communication Technology Agency (ICTA), Mr. Eghosa Urhoghide, advocated stronger collaboration among operators, regulators, government institutions, road maintenance agencies, and host communities.
He emphasised that strict adherence to NCC deployment standards remains essential to ensuring the long-term sustainability and resilience of Nigeria’s telecommunications infrastructure.
Representing ipNX on the panel discussion titled “Policy, Governance and Regulatory Alignment,” Mr. Segun Okuneye, Deputy Director, Strategic Business Initiatives, highlighted the need for stronger collaboration across the telecommunications ecosystem to unlock the full potential of fibre broadband in Nigeria.
According to him, sustainable fibre deployment extends beyond technology and investment to include policy consistency, stakeholder alignment, infrastructure protection, and shared responsibility.
“Achieving universal fibre connectivity requires more than deploying infrastructure, it requires sustained collaboration between operators, regulators, government agencies and host communities.
“When policies are aligned, deployment standards are consistently enforced, and critical infrastructure is protected, we create an environment where investment thrives and more Nigerians can enjoy reliable, high-speed broadband.
“At ipNX, we remain committed to working with all stakeholders to build resilient digital infrastructure that will support Nigeria’s economic growth for generations to come.”
Throughout the discussions, participants agreed that while Nigeria has made considerable progress in broadband expansion, addressing recurring issues such as fibre vandalism, right-of-way challenges, inconsistent deployment practices, infrastructure duplication, and limited public awareness will require stronger partnerships and coordinated industry action.
The forum concluded with a shared commitment among stakeholders to strengthen industry standards, encourage infrastructure sharing, improve policy implementation, and promote greater public appreciation of telecommunications infrastructure as critical national assets deserving of protection.
For ipNX, participation in the ATCON Critical Conversation Forum reinforces our company’s ongoing commitment to supporting industry-wide initiatives that advance broadband penetration, strengthen digital infrastructure, and accelerate Nigeria’s journey towards a more connected and digitally inclusive future.
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