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Airtel’s CEO Says Telco-led Mobile Money will Deepen Retail Banking

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Mr. Segun Ogunsanya, ‎chief executive officer and managing director of Airtel Nigeria, has called for a review of the current mobile money model, saying a telco-led model will help expand retail banking, thereby driving financial inclusion in the unbanked segment.

Currently, telecoms companies are not permitted to provide their own mobile money services as the current model approved by the financial regulator, Central Bank of Nigeria, empowers banks to provide mobile money services while telecoms companies play only a supporting role.

Speaking, recently, at the annual lecture of the Chartered Institute of Bankers in Nigeria (CIBN) in Lagos, Ogunsanya said for the mobile money market to reach its full potential, it is important that restrictions on telco activity in m-money are lifted.

According to him, Agency/Agent Banking as well as mobile money can help deepen penetration in retail banking in the country, suggesting that the mobile money sector is rather slow at this time because they are led by banks.

“The overwhelming majority of the adult population is unbanked; however, mobile penetration is approximately 78%. The market opportunity for mobile money is therefore vast. The number of mobile money transactions has increased at a rapid rate over the past 3 years – further adoption will be driven by increased awareness.”

The Airtel Boss also advised that for banks to expand its retail footprints, they must seek to develop simple products, push for transparency and ensure that their products and services are relevant to the target segment.

Also speaking at the event, Mr. Michael Lafferty, chairman, Lafferty Group, UK and guest lecturer at the occasion, said he is a strongadvocate of retail banking becoming a profession and he passionately believes that retail bankers should be required to act in the best interests of their clients at all times.

“This means that retail bankers must be educated to a similar standard as accountants and lawyers, bound by a demanding ethical code and required to commit to continuing professional development,” he said.

The theme of this year’s lecture was ‘The Changing Global Retail Banking Landscape: How Competitive are Nigerian Banks?’and the event was chaired by Chief Emeka Anyaoku, former secretary General of Commonwealth.

Hosted by the president/chairman of council, CIBN, Otunba (Mrs.) Debola Osibogun, FCIB, the lecture attracted various chieftains of the banking and finance industry, top public officials, foreign diplomats, academia as well as top executives of the organized private sector

The CIBN annual lecture focuses on topical issues within the Nigerian economy and aimed at highlighting key issues and ideas that will influence policy makers.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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