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A Case for Mobile Banking in Nigeria

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Nigeria is on the verge of mobile banking explosion, a phenomenon which is expected to push up the number of the banked in the country from a pathetic 15 per cent mark.
Recently, the Central Bank of Nigeria (CBN) issued MoneyBox license for mobile banking – a development industry watchers have considered laudable. Tagattitude of France, MTN, and a couple of others are at various stages of deployment of mobile banking services in the country.
The success of M-pesa in Kenya is expected to be replicated in Nigeria given a favourable regulatory environment. The CBN has so far, shown enthusiasm in observing the current trend sweeping across the globe.
The Philippines for instance, has been a world leader in mobile banking, enabled by a progressive regulatory regime provided by the country’s Central Bank, which has consciously promoted “branchless banking.”
In the Philippines where people with mobile phones far outnumber those with bank accounts, as in Nigeria, the use of such instruments has had a transformational effect on Filipinos’ access to finance. 
The current environment there shows that the telecommunication companies have recognized this opportunity. Smart Communications in 2003 and Globe Telecom in 2004 launched the electronic money concept, which they called Smart Money and G-Cash, respectively.
The Smart Money technology allows users to make purchases, pay and receive domestic payments and receive remittances by loading or transferring money from a bank account into a mobile phone account or reloading a prepaid card (smart card) electronically through the mobile phone.  The G-cash is a similar technology which provides the same services but does not use a debit card and instead just uses accredited cash-in and cash-out outlets via the mobile phone.
Usage volume is steadily increasing with an estimate of around 8 million customers with electronic money accounts, and banks are actively making use of these available platforms in providing financial services, including microfinance services. 
The mobile phone is turned into an electronic wallet where transactions can be made through SMS. This is seen as a revolutionary solution for low value payments and has dramatically lowered transaction costs for both the bank and the client, increased the productivity of account officers, decreased cash-on-hand risk and increased accessibility to the financial services.
But issues bordering on security of mobile payment networks have been raised and are considered critical for the success of mobile banking in Nigeria. Be that as it may, Nigeria has launched on that expedition just as other developing countries, and it promises to be a sure and steady one.

 


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Editorial

NDPC Boss Nominated for Global Privacy Assembly’s Giovanni Buttarelli Award 2024

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Dr Vincent Olatunji
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Dr Vincent Olatunji, National Commissioner and Chief Executive Officer of Nigeria Data Protection Commission (NDPC), has been nominated for the Giovanni Buttarelli Award 2024. The award through the Global Privacy Assembly recognises an individual’s outstanding leadership and exceptional efforts in fostering international collaboration.

Dr Vincent Olatunji

This nomination highlights Dr Vincent’s commitment to driving innovation, expanding global partnerships, and promoting a collaborative approach within the data privacy and protection ecosystem.

Under the visionary leadership of Dr Vincent, the Data Privacy ecosystem in Nigeria has witnessed a remarkable growth through key milestones such as deepening the knowledge of data protection and privacy in all public and private institutions, judicial recognition of adequacy principle in cross-border data transfer, playing key roles in regional and global data privacy ecosystem, commencement of bilateral cooperation with other jurisdictions, licensing of data protection compliance organisations, commencement of national data protection certification process, among others.

Dr Vincent’s strategic and innovative initiatives has been instrumental in forging strong international partnerships, driving sustainable growth, fostering a culture of collaboration which has not only propelled the NDPC to new heights but also set a benchmark for international cooperation and industry standards.

The Giovanni Buttarelli Award celebrates leaders who have demonstrated exceptional leadership and/or promoted collaboration at a regional or international level in the field of data privacy and protection.

Nominees are evaluated based on their contributions to projects that has led to the development of innovative concepts or practices, which have significantly impacted the thinking in the international data protection and privacy community, partnerships, and initiatives that enhance global cooperation and development.

In his response to his nomination, Dr Vincent Olatunji expressed his gratitude and emphasised on the importance of collective effort in achieving global progress. “I am deeply honored to be nominated for the Giovanni Buttarelli Award 2024” said Dr Vincent.

“This recognition is a testament to the hard work and dedication of our entire team at NDPC. It underscores the power of collaboration and the remarkable outcomes we can achieve when we work together across borders.

“I am excited to continue our journey, driving innovation and fostering partnerships that make a positive impact globally,” he said.


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Editorial

Telcos Ask NCC to Allow Them Hike Tariff

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Telecoms operators including MTN, Airtel and Globacom have pushed for cost-reflective tariff in view of extant economic realities.

Telcos Ask NCC to Allow Them Hike Tariff

This was contained in a statement jointly released by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) on Thursday.

The statement was co-signed by Gbenga Adebayo; chairman, ALTON and Tony Emoekpere, president, ATCON.

The telcos called upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

The telcos said telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

“Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

“For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

“ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” the statement partly read.

Regarding the Nigerian Communications Commission (NCC), the telcos also said regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector.

“Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement added.


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FG Reiterates Commitment to Achieving 17 SDGs

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The federal government has reiterated its commitment to achieving all the 17 Sustainable Development Goals (SDGs) to promote economic growth and eliminate poverty in Nigeria.

The Minister of Special Duties and Intergovernmental Affairs, Senator George Akume, gave the assurance at a news conference on Tuesday, in Abuja ahead of the “Inaugural Partnership Economy Summit”, scheduled for September 14 and 15.

According to Akume, the primary purpose of the summit is to diversify the economy, promote rural growth, as well as generate sustainable jobs for the youths.

Achieving this, the minister emphasised on partnership with other stakeholders as it was the responsibility of his ministry to achieve the aim of its mission and the creation.

“The framework for the upcoming summit, guided by the principles of Public Social Private Partnership (PSPP) is being designed to develop, promote a multi-Iayered collaborative socio-economic platform for the government, the business sector as well as the civil society.

“In order to achieve this, President Muhammadu Buhari established the ministry with the mandate to develop and implement policies, programmes and projects for the effective and efficient delivery of the gains of Economic Growth and Recovery Plan,” Akume said.

He said the ministry was also charged with the mandate of collaborating with the private sector to create employment for a large number of Nigerian youths, adding that it is also meant to implement a strategy towards the realisation of the president’s June 12 promise to take 100 million Nigerians out of poverty in 10 years.

“Nigeria is among the countries in the UN that signed a pact to implement the SDGs by 2030, in the words of Ban Ki-Moon, former Secretary-General of UN in 2016.

“Nigeria is not left out in its plan towards achieving the SDGs, and how far has Nigeria gone to achieving the 806 goals is part of the questions that the upcoming summit seeks to address,” Akume explained.

He stated that to tackle the issue of poverty and unemployment, the ministry is in partnership with a number of stakeholders, including the Ministry of Industry, Trade and Investment; and Small and Medium Enterprises Development Agency of Nigeria.

Others are Raw Materials Research and Development Council, National Orientation Agency, Association of Local Government of Nigeria and SDGs Nigeria as well as MYK Psymmons Solutions Limited to come up with achievable solutions to all the challenges.


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