General News
Risks of Mobile Payment and Agency Banking
Nigeria is experiencing phenomenal growth in its banking and e-banking sectors with new policies and regulations that is driving cashlite, branchless Banking and agency banking services for existing and new customer segments in urban and rural communities.
The financial institutions and other players in the financial sector are continually expanding the products and services they offer while constantly searching for new, easy and secure ways of enabling their customers to access and operate the various products and services they offer.
Regulatory changes in recent years is changing the way banking services is provisioned to unbanked, under banked in rural and urban communities with limited options for formal Banking services.
Mobile Payment is improving access to these groups, cost effectively through the use of Agents in cities, towns and rural communities.
The Central Banks around Africa are also actively licensing banks and other non prudentially managed organizations to deploy mobile financial services for basic banking services, payment, money transfers and other financial services using the third party agency network.
The benefits of agents as financial services intermediaries have proven to be successful in some countries like Philippines and Brazil. More than 18 percent of Banking activities and transactions are conducted at agent locations in Brazil alone with more than 140,000 active agency outlets in operation, making it the most extensive use of agents anywhere in the world.
The successes in Uganda and Kenya are also worthy of mentioned and both are directly linked to the availability of a well connected agency network of the mobile money providers in both countries.
Who are Agents?
Potential agents are either registered entities or non-registered with on going primary business with intentions to provide mobile money as an add-on service in addition to existing primary business?
It is desirable for agents to have primary on-going business to enable them manage liquidity, reduce rebalancing trips to the nearest bank branch, manage cash at hand and also reduce cost in the early days of low value adoption of mobile financial services.
The scheme operator partner decides the type of services it wants the banking correspondent to offer to the public in accordance with its strategic plan.
The Agent will meet the following benchmarks – ubiquity: available in prime locations and easy access, trustworthiness: trust in non repudiation of the service, low-cost: low cost set up structures with minimal barrier to entry, liquidity: cash in / cash out requirements that are within the affordability range for the targeted store owners.
Providing basic financial services at the agents for customers of the scheme provider could take many forms.
Bill payments, utilities payment, domestic money transfer, merchant services, low value deposits and withdrawals are some of the basic services available at the agent outlets.
Agents are weakest link in the mobilemoney ecosystem since the scheme provider may not be able to ensure certainty at all times at the outlets and also ensure guaranteed minimum service levels at the outlets. These agents whom are service providers or shop owners are also faced with potential frauds which could be by omission or commission.
Evidence has shown that fraud attempts in the early days of mobile money deployments are mostly targeted at agents that may not be well versed in the operations of the service or agents that connived with intentions to defraud the scheme provider.
Evaluating the Risks
Technology and application compromises could present a significant risk for agents if they are not well educated and trained on some processes like PIN management, due diligence or record keeping. MobileMoney and Agency Banking are services unlike airtime vending which is a product.
Liquidity risks which will be significant as Agent network grow slowly and confidence level improves over time.
If mobile money recipient cannot consistently cash out at agent outlet at their own locality, the more they are the weary and discouraged to use the mobile channel.
Providing multiple cash out points like ATM, Cards, transfer to account, token generation and other innovations will address this challenge.
An efficient cash forecasting , management processes and support for the agents will address this issue and reduce it to barest minimum. The agent risk could take may forms from outright robbery, theft, poor product knowledge, application failures or even poor customer due diligence processes.
In some countries, providers made great haste to launch out to achieve coverage very quickly and paid little or no attention to Agent training which later impacted future operations.
Mobile oney is a service and requires lots of education. Regulators are helping the ecosystem’s long term sustainability and growth by standardized training procedure that is enforced across providers, agent licensing and certification is encouraged by the regulator to providers.
Security
Potential agents during training or sign up activities are always skeptical about physical and logical security as a mobile payment agent. Incidences of robbery and mugging of agents are still unheard in Nigeria but agents are already reporting systematic attempts to defraud through fake transaction message notifications, subscriber enrollment via stolen ID, unauthorized PIN reset conducted at agent outlets.
John, newly signed up as an agent with one of the recently licensed mobile financial services provider, His major concern was His physical security and He made some decent efforts to put in place some anti burglary systems. He was recently defrauded of N5,000 ($30) when some dubious persons posing as the channel manager of the mobile money firm accessed his device at his location and changed transaction destination number on his phone to another number which they used to reply messages to confirm cash out transactions after they had left his outlet.
Fake Currencies
Fraudsters are quickly building their game plan and strategies to engage the agents.
Agents are primarily store owners, mom and pop stores, convenience outlets and some other organized retail outlets.
However, some unemployed youths and semi skilled workers are signing up to become agents in Nigeria without the required understanding of cash management and handling prior to their engagements as agents.
By omission or commission, incidences of agent cash- in currencies having some fake notes are on the rise in the semi urban areas.
During a recent field trip, some agents were interviewed in Badagry area of Lagos state and two out of ten confirmed that they had received fake notes at least once within the first one month of operation while one of them confirmed that He passed the fake note off to another cashing -out customer.
Agency Sustainability
If agents are not earning revenues in the early days of low volume due to low adoption, they tend to abandon the agency outlet and focus on other activities.
The challenge of agency sustainability in Nigeria is still unfolding and most agents that are faced with the sustainability issues are agents that do not presently have primary business and most probably hired new office spaces and mobile money is the only service that is provided at such outlets instead of providing mobile money as one of the services alongside the primary business.
Compensating Losses
There are three parties to the mobile money transaction though not in all cases – The scheme provider, agent and the customer.
Agents are supposed to be covered by the provider’s insurance plan covering cash in transit, fraud, fire and robbery with coverage up to N100,000 as contained in the regulatory framework but it is still unclear how customers can recover losses in extreme case of business closure especially if the scheme provider is a non-prudentially managed entity.
Few scenarios where agents had made claims for losses (which cannot be independently confirmed) experiences has shown that agents are usually left to recover losses without adequate support from the scheme provider.
The agent that received the fake currencies during our field visit in Lagos, expressed her regrets that the mobile money provider could not explain to Her in clear teams who bears the losses.
Judging from most stakeholders concerns in the mobilemoney ecosystem, fraud seems to be first on their checklist.
From a Bank’s point of view, dealing with agents can be a nightmare.
Innovative practices that the regulator can put in place to address the fraud concerns should include a centrally located fraud alert systems where all providers, agent and customers can log fraud issues in a timely manner so that patterns can be established with a view to curbing or reducing future occurrences and also using the outcomes in continuous training of Agents
Breathe Life Foundation partnered with Teach Nigeria Fellow, Ms Bunmi Rotimi, to deliver a respiratory health awareness session for over 200 senior students of Cleggs Girls High School, Surulere, Lagos.
The session equipped students aged 15–19 years with practical knowledge about the risks associated with smoking, vaping, and shisha, while challenging the misconception that shisha is a safer alternative to cigarettes or other substances.
Through an engaging and interactive discussion, students explored the influence of peer pressure and learned practical strategies for making healthier, more informed lifestyle choices.
They also gained a better understanding of common environmental triggers of asthma and other respiratory conditions, including cigarette smoke, generator fumes, bush burning, mosquito coil smoke, candles, charcoal, and firewood.
The session highlighted an important reality: young people may not always recognise how seemingly routine lifestyle choices and environmental exposures can gradually affect their respiratory health, quality of life, and long-term wellbeing.
For Breathe Life Foundation, this reinforces the importance of shifting the conversation from treatment to prevention through awareness and education. By equipping young people with the knowledge to identify risks and make healthier choices early, the Foundation is helping to build a generation that is more conscious of – and better prepared to protect – its respiratory health.
Breathe Life Foundation is dedicated to advancing respiratory health, an often-neglected public health priority. Healthy lungs are essential to life, yet respiratory diseases remain among the world’s leading causes of death and disability, even though many are preventable and treatable.
Nigeria’s technology retail landscape reached another significant milestone on Monday, August 3, 2026, as global technology giant ASUS, in partnership with Konga, officially commissioned its first flagship experience store in West Africa.
Strategically located at 16 Otigba Street, Computer Village, Ikeja, Lagos; the heartbeat of Nigeria’s technology ecosystem, the state-of-the-art facility represents a major investment in customer experience, product accessibility, and digital innovation.
The launch also reinforces Konga’s growing reputation as a preferred gateway for leading global technology brands into the Nigerian market.
The landmark event attracted Dr Kingsley Tochukwu Udeh, SAN, minister of Innovation, Science and Technology, who officially commissioned the store.
Also in attendance were the Chairman of Zinox Group, Leo Stan Ekeh; Chief Operating Officer of Konga, Dave Omoregie; VP Omni-channel & Commercial Planning, Melvin Onochie; and Head of Marketing and Communications at Konga Group, Victor Oluwaleye.
The ASUS team was led by E.EMEA General Manager, Aaron Tsai, alongside Business Development Manager, Sunnie Chen; Sales Manager, Mohammed Kazim; Gaming Product Manager, Joy Chen; Marketing Manager, Adeola Odeleye; and Sales Specialist, Williams Okenna.
The Honourable Minister described the facility as a defining achievement for Nigeria’s digital economy, noting that it is far more than the opening of a retail outlet.
He called it a strong vote of confidence by a global technology brand in Nigeria’s innovation, science, and technology ecosystem and the immense potential of its market.
He noted that his presence underscored the Federal Government’s commitment to fostering stronger collaboration between the public and private sectors, describing such partnerships as essential to achieving Nigeria’s ambition of building a one-trillion-dollar economy driven by private enterprise and enabled by government.
The Minister paid tribute to Leo Stan Ekeh, describing him as one of the foremost architects of Nigeria’s digital transformation.
He announced that Ekeh had recently agreed to champion the Federal Government’s Youth and Students in Innovation initiative, a flagship programme aimed at equipping young Nigerians with entrepreneurial and technology skills.
According to him, Ekeh’s decades of visionary entrepreneurship have played a pivotal role in shaping the country’s technology ecosystem and attracting prominent technology companies into the Nigerian market.
Using the occasion to address the international business community, the Minister encouraged global investors and brands to look beyond establishing commercial operations in Nigeria and actively partner with the government in driving national development.
He assured investors of the Federal Government’s commitment to creating an enabling environment that safeguards investments and delivers sustainable returns.
Speaking at the event, ASUS E.EMEA General Manager, Aaron Tsai, expressed appreciation to partners, government representatives, and customers for their support.
He explained that the flagship store was conceived to provide consumers with direct access to authentic ASUS products, and expressed confidence that the partnership with Konga will further accelerate the brand’s growth and strengthen customer engagement in the region.
The experience centre features dedicated sections showcasing ASUS’ complete portfolio of premium laptops, gaming devices, AI-powered PCs, and cutting-edge innovations. A standout attraction is an interactive digital display that allows visitors to explore ASUS’ latest technologies virtually before making purchase decisions, creating a more engaging and informed customer journey. Plus, every ASUS device purchased through the flagship store or online on Konga comes with a special one-year replacement warranty at no extra cost.
In his remark, Chief Operating Officer of Konga Group, Dave Omoregie, said the flagship store reflects Konga’s deliberate strategy to give Nigerian consumers a seamless blend of online and offline retail.
He noted that Konga’s logistics network, payment infrastructure, and nationwide retail footprint uniquely position the company to support global brands like ASUS at scale, while ensuring customers enjoy authentic products backed by reliable after-sales service.
According to him, the partnership demonstrates what becomes possible when world-class technology brands trust Nigerian platforms to deliver exceptional experiences, adding that Konga remains committed to setting the operational standard for authentic technology retail across the country.
The launch further reinforces the enduring partnership between ASUS and Konga, built on shared values of innovation, authenticity, and customer satisfaction.
It also highlights Konga’s continued evolution beyond traditional e-commerce into a comprehensive omnichannel technology ecosystem that combines online convenience with physical retail experiences.
For Nigerian consumers and businesses, the new ASUS Flagship Experience Store represents more than a retail outlet; it is a symbol of confidence in Nigeria’s technology market. It highlights Konga’s commitment to bridging the gap between global technology brands and Nigerian consumers. With its robust logistics infrastructure, digital payment solutions, and nationwide physical retail presence, Konga continues to set the standard for authentic, accessible, and reliable technology retail across Africa.
The flagship store opening featured guided product demonstrations, immersive technology experiences, exclusive launch-day offers and customer engagement activities celebrating this historic milestone.
Customers can begin shopping immediately at the ASUS Flagship Experience Store, located at 16 Otigba Street, Computer Village, Ikeja, Lagos. Visitors can explore authentic ASUS products, experience live product demonstrations, receive expert guidance, and access dedicated Starlink customer-support services.
Socio-Economic Rights and Accountability Project (SERAP) has called on President Bola Tinubu to direct, Lateef Fagbemi (SAN), attorney general of the federation and minister of Justice; Olatunji Rilwan Disu, inspector-general of Police, and relevant anti-corruption agencies to investigate allegations that more than ₦6.79 billion in public funds were missing, diverted or misapplied within the Nigeria Police Force and the Federal Ministry of Police Affairs.
The allegations are contained in the Auditor-General of the Federation’s 2022 Annual Report, published on September 9, 2025.
In a letter dated August 1, 2026, and signed by Kolawole Oluwadare, deputy director, SERAP, the organisation urged the government to ensure that anyone implicated in the report is prosecuted and that all missing public funds, firearms and ammunition are recovered.
“Anyone suspected to be responsible—including contractors, companies and public officials implicated in the report—should be promptly prosecuted, while all missing public funds, firearms and ammunition should be fully recovered, secured and properly accounted for.”
SERAP described the Auditor-General’s findings as a serious breach of public trust.
“The Auditor-General’s findings suggest a grave betrayal of the public trust and raise serious concerns about corruption and the management of public funds, police exhibits, firearms and ammunition.”
The organisation also expressed concern over allegations involving missing firearms, unauthorised use and release of police exhibits, and poor storage of weapons.
“The report also raises serious concerns over missing firearms and ammunition, the unauthorised use and release of police exhibits, failures to properly account for exhibits, and the insecure storage of firearms, creating significant risks to public safety and national security.”
According to SERAP, the alleged diversion of funds meant for policing and the reported irregularities have weakened the operational effectiveness of the Nigeria Police Force.
“The diversion of funds meant for policing, abandoned security projects, missing firearms and ammunition, and the misuse of police exhibits undermine the operational effectiveness of the Nigeria Police Force, weaken public confidence and may contribute to Nigeria’s worsening insecurity.”
The organisation said the Auditor-General’s report documented several alleged financial irregularities, including payments for projects that were never executed, abandoned contracts, inflated contract costs, irregular procurement, unretired cash advances, unsettled insurance claims and payments for services allegedly not rendered.
“The report documented numerous alleged financial irregularities within the Nigeria Police Force and the Federal Ministry of Police Affairs, including payments for projects that were never executed, abandoned contracts, inflated contract costs, and irregular procurement.”
“The report also documented unretired cash advances, unsettled insurance claims, payments for services allegedly not rendered, and other suspected diversion and misapplication of public funds amounting to over ₦6.79 billion.”SERAP further cited allegations of missing firearms and ammunition, failures to properly account for recovered weapons and exhibits, and insecure storage of firearms.
“The allegations also include missing firearms and ammunition, the unauthorised use and release of police exhibits, failures to properly account for recovered firearms and other exhibits, and the insecure storage of firearms, posing serious risks to public safety and national security.”
The organisation gave the Federal Government seven days to act on its demands, warning that it would pursue legal action if no response is received.
“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal action to compel your government to comply with our request in the public interest.”
SERAP also argued that the allegations, if left unaddressed, would violate constitutional provisions requiring the government to combat corruption and safeguard the welfare and security of Nigerians.
Among the specific findings cited from the Auditor-General’s report were allegations of payments for abandoned and unexecuted police projects worth hundreds of millions of naira, inflated contract values, unretired cash advances, irregular procurement processes, unsettled insurance claims exceeding ₦681 million, over ₦1 billion in uncleared insurance policy liabilities, missing firearms and ammunition, unauthorised release of police exhibits, and contracts allegedly awarded without due diligence by the Federal Ministry of Police Affairs.
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