Connect with us

E-Financial

CBN to Revoke Licenses of 15 Mobile Money Firms

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) may revoke the licences of at least 15 struggling mobile money operators under new minimum finance rules.

 

New Telegraph tipped the majority of the 21 companies operating services in the country to fall foul of tough new cash requirements.

 

CBN rules, effective from the end of December 2017, stated operators must have NGN1 billion ($2.8 million) in reserves.

 

This sum is set to rise to NGN2 billion on 1 July, 2018 – a level the newspaper said many providers would fail to reach.

 

Isaac Okorafor, CBN corporate communications director said he didn’t expect any “serious operator” to lose its licence when the July requirement takes effect.

 

Though Okorafor was silent on the number of operators that may be affected at deadline with full implementation of the new N2 billion recapitalisation policy, New Telegraph gathered that more than 15 of the licensed mobile operators, which lack the financial muscles to recapitalise as required by the apex bank come July, may have their licences withdrawn.

 

Mobile money is an aspect of financial transactions where financial values are transferred from one person to another using Unstructured Supplementary Service Data (USSD) platform on mobile networks.

 

The electronic fund transfer platform was introduced to complement the entire spectrum of cashless economy policy effectively introduced by the apex bank in January 1, 2012.

 

Till date, some 21 mobile money licences have been issued by the CBN with only a few of them operating effectively, including United Bank for Africa/ AfriPay (U-Mobile); Zenith Bank (EazyMoney); GTBank (GTMobileMoney); FirstBank/Pridar – (First- Monie); Stanbic IBTC (*909# Mobile Money) and Ecobank (Ecobank Mobile Money) and others.

 

It was, however, gathered that most of the mobile money operators not backed by any bank have had their operations crumbled due to what industry pundits refer to as “paucity of funds to run effective operations to compete in the financial services market” and may find it difficult to meet the deadline “without some re-alignment.”

 

 

Operators within this fold, as gathered, include Parkway Projects (ReadyCash); eTranzact (PocketMoni); PagaTech (Paga); Fortis MFB (Fortis Mobile Money); Monitize (Monitize mobile money); FETS (My Wallet); Eartholeum (QikQik); Teasy Mobile (Teasy Mobile); Mkudi (Mimo); PayCom (Payment Irrespective of Distance or Obstacles – PIDO); VTNetwork (Virtual Terminal Network – VTN) and Cellulant (CeLLulant) among others. Despite having 21 mobile money operators licensed by the CBN in the circulation, the volume of transaction on the payment platforms is still grossly low, according to data obtained on NIBSS official website.

 

New Telegraph gathered that on the basis of the licensees’ inactivity occasioned by sheer paucity of funds to effectively roll out, the CBN has introduced the recapitalisation of mobile money operations in order to have strong players with adequate financial chess power to advance mobile financial services in the country.

 

Speaking on the misunderstanding of their role and conditions of licensing, Shonubi, in an interview with New Telegraph, said, “Most mobile money licensees have left what should be their niche markets to compete with big financial institutions such as banks. Until, they refocus their attention towards playing in micro transactions area rather competing with the banks’ market, they will continue to have problem.”

 

According to him, mobile money operators, looking for where to make money from, decided to run after bank customers who also have mobile phones and were determined to take some of them off the hook of the banks, which is a misplaced priority.

 

Mr. Ike Nnamani, president, Medallion Communications, blamed the poor performance of mobile money operators on lack of adequate funding, lack of technical skills, poor shared infrastructure arrangement as well as lack of focus as to what their mandate should be.

 

 

 

 

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Financial

FG to Receive $2.25Bn Fresh Loan From World Bank on June 13

Published

on

Kindly share this post

Federal government will receive fresh loan funding from the World Bank, with approval expected for loans totalling $2.25billion on June 13, 2024.

FG to Receive $2.25Bn Fresh Loan From World Bank on June 13

 

Recall that Wale Edun, minister of Finance, at the spring meetings of the International Monetary Fund and the World Bank last month, had announced that the nation had qualified for processing a loan, described as ‘virtually a grant’ of $2.25bn from the World Bank at one per cent interest rate.

He stated, “We have qualified for the processing just this week to the Board of Directors of the World Bank of a total package of $2.25bn of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for about 10- 20 years moratorium and about one per cent interest.”

The package, approved by the World Bank Board of Directors, offers a 40-year term with a 10-year moratorium and a nominal one-percent interest rate.

According to the latest information on the World Bank website, the funding will be received via two major development projects.

The first project is the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing, which is set to receive $1.5bn.

The second project, NG Accelerating Resource Mobilization Reforms Programme-for-Results, has proposed funding of $750m.

It was also indicated that the government might reintroduce the excises on telecom services and the EMT levy on electronic money transfers through the Nigerian Banking System, among other taxes.

 

 

 


Kindly share this post
Continue Reading

E-Financial

Cybersecurity Levy Meant for Financial Institutions, Telcos – Senate:

Published

on

Kindly share this post

Senator Shehu Umar Buba, chairman, Senate Committee on National Security and Intelligence, on Sunday, clarified that the recently imposed cybersecurity levy announced by the Central Bank of Nigeria (CBN) is not targeted at individuals operating bank accounts.

Cybersecurity Levy Meant for Financial Institutions, Telcos – Senate:

Rather, the senator, who sponsored the amendment bill in a statement in Abuja, explained that the levy is aimed explicitly at financial institutions and telecommunication companies.

He said the financial institutions and telecommunication firms are most vulnerable sectors to financial crimes and cyber fraud to enhance cybersecurity measures and national security in the country.

He noted that: “The relevant section of the Cybercrime Act is very clear about the businesses that are required to pay the levy, not the citizens.

“The Act is very explicit about who is responsible for the payment, not Nigerian citizens or individuals.

“The relevant section of the Cybercrime Act 2015 listed the businesses required to pay the levy: telecommunications companies, Internet Service Providers, banks, insurance companies, the Nigerian Stock Exchange and other financial Institutions.

“The organisations in the sectors have been listed in previous circulars by the Central Bank of Nigeria, especially in 2018. The new circular by the CBN further provided many exemptions.”

Buba also clearly explained the amount payable as a cybersecurity levy.

According to him, “It is either 0.005 or 0.5 per cent arithmetically. The figure in the principal act was 0.005 as a fraction, which was converted to the percentage that became 0.5 per cent in the amendment.

“Therefore, the statistics in fractions and percentages are the same.

“The legislator highlighted that the passage of the amendment bill was a collaborative effort of various stakeholders.

“The passage of the amendment bill was a collaborative effort involving the government, industry players, civil society and academia.

“They expressed their contributions and actively  participated in the public hearing before the endorsement by the two chambers of the National Assembly.

“After rigorous processes, President Bola Ahmed Tinubu signed the bill into law in February 2024.”

The senator acknowledged the concerns of Nigerians, civil groups and other stakeholders about the current economic situation.

He was reassured that implementing the cybersecurity law was not meant to punish citizens.

He emphasised that the levy was a collective effort to protect national security and the economy, with the financial burden primarily falling on the specified businesses.

The Cybercrime (Prohibition, Prevention, etc.) (Amendment) Act 2024, which President Tinubu signed into law in February, imposes a 0.5 per cent (0.005) levy equivalent to half the value of all electronic transactions by the businesses specified in the Second Schedule of the Act.

The levy will be remitted to the National Cybersecurity Fund, which the Office of the National Security Adviser (ONSA) shall administer.

The circular announcing the levy also exempted some transactions from the cybercrime levy.

They included loan disbursements and repayments, salary payments, intra-account transfers and other financial transactions.

 


Kindly share this post
Continue Reading

E-Financial

9PSB Inspires Startup’s Growth @ Tech Entrepreneurs Conference

Published

on

Kindly share this post

9 Payment Service Bank (9PSB), Nigeria’s digital payment service bank, focused on financial inclusion has encouraged the growth and development of more Information Technological startups by sponsoring the just concluded Kano TechPrenuer Conference. A Tech entrepreneur gathering held at Meena Event Centre, Lodge Road, Kano.

The flagship event, which was organized by IMH Global with the theme: Empowering Tomorrow: Innovating in the Digital Space, aimed at bringing together tech enthusiasts, entrepreneurs, and innovators to explore emerging trends, share insights, and enhance networking opportunities within the technology ecosystem, with a focus on fostering innovation and entrepreneurship.

Speaking during his presentation, Akeem Salam, Group Head Business Development and Strategy, 9 Payment Service Bank (9PSB), highlighted the huge contributions of technology and its innovations to different fields of human endeavors, how it has transformed the way operations and services are being rendered especially in finance and banking sector.

Today, banking services are all digitalized, which has paved way for the emergence of financial technology companies and payment service banks to operates seamlessly and drive financial services to the banked and the unbanked in every nook and cranny of the country; as well as facilitate financial inclusion for all Nigerians leveraging on mobile technology and communication.

‘’We have made tremendous efforts by contributing to closing the gap in financial inclusion by delivering our services to various market segments with our tailor- made products and services such as our virtual accounts, Bank9ja mobile App, USSD services, PoS services to merchants, ever dependable agency banking; driven by our Service Location Partners and bills payment as a service made easier once you have our platform available on your mobile devices. In addition, we collaborate with other industry players to ensure we deliver on our mandate.

“Remember, collaboration is indispensable as it opens opportunities in the industry by helping the journey to be a smooth ride. Therefore, we have been partnering financial service providers to ensure we leave no stone unturned. Our products and services are flexible and user-friendly, pricing and charges are of industry standard, Akeem added.”

‘’Asides from delivering seamless payment services, the Central Bank of Nigeria also mandate us to drive financial literacy, to ensure that basic financial education is extended to both young and adult Nigerians. This of course, we have been doing through our diverse services and programmes.

“We will continue to support the development, growth and innovations of startups and tech initiatives as this will impact the society greatly. Therefore, I enjoin you all to be focused and committed in your career and businesses,” he remarked.

Kano TechPrenuer Conference is an annual gathering of enthusiastic individuals in the tech industry. The event brought together IT consultants, web developers, social media marketers/managers, affiliate marketers to interact, upskill, collaborate, and chart the way forward. The event served as a nexus for innovation, providing a space for learning, networking, and exploring the latest trends and strategies in the tech entrepreneurial ecosystem within Kano State.

 


Kindly share this post
Continue Reading

Trending