E-Financial
Experts Ring Worries Over Faltering Mobile Money
Finance experts waxed worriedly at the slow growth of mobile money service and warned that unless the impediments are removed, the service may be dead on arrival.
They also painted a dismal picture and concluded that Nigeria is scratching the surface because the growth of mobile money market does not correspond to her population.
And when compared to other smaller African countries where the service has recorded success, the experts said the country might have gotten off on the wrong foot.
The experts who gathered for third Mobile Money Expo in Lagos called for urgent review of the framework of mobile money so that the service can be the catalyst needed for the nation’s economic growth.
This year’s Mobile Money Expo had the theme; ‘Promoting Inter-operability’ and had mobile money experts from various countries of the world.
Chalapathi Rao Immidi, director and head, Global Business Development, Mfino, said interoperability is needed, for providers to share their infrastructure networks, thereby enabling multiple allowance, without which the economy would not grow.
Interoperability, a term often used in a technical systems engineering sense, is the ability to allow different systems and organisations have the interface properties of their products inter-operate, exchange, and use information without any restricted access or implementation.
“Imagine all of us, not being able to talk to people not on your mobile network, because they are on other networks” he said.
Chalapathi said that providers would have to operate in unison, to make the adoption of mobile money easier.
“This would enable many factors and many people, organisations and banks would be encouraged to participate and there would be more range of products to offer customers,” he said.
According to him, mobile money has a lot to offer apart from the basic sending and receiving money as it can be used for government disbursement, salary payment, settling of daily paid workers and more.
“A synergy in operation would offer greater value to customers. Countries that connect though bridges are the one that had their economy grow. Once there is connectivity, communication and a common source, there would be a pool of customer expansion, agents would find it easier to run operation while reducing cost and there would be general access expansion” he said.
Nodding in agreement, James A. O’Brien and George M. Marakas, authors of Introduction to Information Systems, define interoperability as “Being able to accomplish end-user applications using different types of computer systems, operating systems, and application software, interconnected by different types of local and wide area networks”.
But there are also the challenges posed by finance.
Lanre Osibona, CEO, InnovaTechNG, said that for interoperability to be achieved, it would have to cut across provider platforms, agents and customers, such that providers can send money to other provider platforms seamlessly; agents can serve customers from any provider, without having to have multiple platforms to perform their service; and customers can access any provider irrespective of the SIM cards, network or handset they possess.
“The question is, are we mature enough for this? Is the market mature enough for this?” Mr. Osibona asked.
He said Nigeria has not exactly done that badly, as Paga, one of the leading providers of mobile money in the country, is ahead of MPesa, of Kenya, if statistics they have presented is to be followed.
“Technology must be open for developers to meet our local challenges. Culturally, we are so into cash and that is a challenge in itself. There needs to be a drive. We need to transform and change the orientation of people. You have to make people want to use it. We are doing okay, but we need to do more” he said.
There are over 20 licenced mobile money operators in Nigeria.
However, only 4.8 million adults (5.5 per cent of the adult population) are aware of mobile money operators (MMOs), according to a 2012 survey on Access to Financial Services in Nigeria by Enhancing Financial Innovation and Access, EFInA, an independent financial sector development organization.
The survey, dated November 22, 2012 stated that only 0.4 million adults (0.5 per cent of the adult population) are registered with any mobile money operator and for those that are active users, mobile money is most often used to buy airtime.
Osondu Nwokoro, director, Regulatory Affairs and Special Projects, Airtel Nigeria, said the available figures on Nigeria’s mobile money market are not particularly exciting, years after the first licences were granted.
“It should not be so”, he said.
He identified other challenges, apart from interoperability, to include awareness, cultural apartheid towards financial services products, illiteracy, funding, technology, and the absence of a structured and consistent regulatory policy.
“We need to start thinking of unique ways to address the issue. We are in it and we need to make it work,” he said.
Low levels of awareness of financial terms/products could hinder the uptake of products such as mobile money, non-interest banking and microfinance; however, high levels of awareness does not necessarily result in high levels of uptake, according to the EFinA Survey.
The top factors which would encourage the 48.1 million adults who said they could be encouraged to use mobile money, to actually use mobile money products are: understanding how mobile money works, having a mobile money agent close to residence/place of work, feeling mobile money is safe and when many people start using mobile money, according to the survey.
About 29.8 million adults who own a mobile phone are unbanked, 15 million adults would consider using their mobile phones to send money, 14.1 million adults to receive money and 9.4 million adults to save money, an indication of a huge market waiting to be tapped.
According to the Survey, quick wins for mobile money, and indeed, financial inclusion would be the availability of higher income and socio-economic status, secondary education, high levels of connectivity, savings orientation more long term, use of credible sources of financial information among others.
Emmanuel Okoegwale, principal associate MobileMoney Africa, said the event is an opportunity for Nigerian operators and regulators to share experiences and learn from operators and experts from other countries.
Some of the participants said they would like to see more action and positive results, on the part of the operators and regulators, emanate from such conferences.
They urged operators not to lose focus on the aim of mobile money, which is financial inclusion. Operators were urged to spread their tentacles to the towns and villages, where a large portion of the unbanked reside, and reduce wooing people in the city who most likely already have one or multiple bank accounts.
OneWallet microfinance Bank is partnering Zenith bank and MTN to build a platform that will provide digital financial services to support the growth of Small and Medium Scale Enterprises (SMEs) businesses in Abia State.
Dr. C Darl Uzu, Chairman of OneWallet, who disclosed this while launching the platform for traders at the Ariaria International Market, Aba, Abia State said it was meant majorly for traders and the SMEs because they are the bedrock of the Nigerian economy.
According to Dr. Uzu, “We want to expand the inclusion of small businesses in digital financial services by making it easy for them to make and receive payments on affordable digital devices, hence the UnionBell Smart phones and POS.
“We want to help SMEs to access financial support and loan easily to grow their business, and also help businesses to build the history and credibility they require for future growth and expansion.”
He said OneWallet was not created just as a payment application, but as a business support platform designed around the real needs of SMEs.
Dr. Uzu said the choice of Ariaria International Market as the pilot for the platform was intentional since the market is one of the strongest symbol of enterprise in Nigeria.
“We are not here however to teach Ariaria people how to trade because Ariaria already understands business, but we are hear to support Ariaria business energy with tools that can help businesses do more, reach more customers, organize better and prepare for bigger opportunities; we are here to help Ariaria innovate and grow.”
He thanked MTN, Zenith bank and the leadership of the traders for partnering OneWallet to provide the platform that help businesses to expand.
A representative of MTN at the launch, Dr. Ernest Chieke described OneWallet as a platform for individuals and SMEs which intend to move their businesses forward.
He expressed joy that his firm was partnering OneWallet to bring solution to SMEs’ financial problems.
Carl Akwarandu who represented Zenith bank at the event said the bank decided to partner OneWallet because it has a unique product that will make small businesses grow faster.
He promised that Zenith bank would give OneWallet all the support it needs to make it number one microfinance bank in the country.
The Director of OneWallet, Dr. David Nwosu described the microfinance bank a one stop-touch for SMEs growth.
He said at OneWallet, collateral are not needed to obtain loan, but the individual’s business history.
A member of the board of the microfinance bank, Wiedong Wang, commended Dr. Uzu for establishing OneWallet.
He expressed optimism that with the help of its partners, OneWallet will excel.
Central Bank of Nigeria (CBN) has warned non-interest financial institutions against governance and compliance risks capable of undermining public confidence and financial stability in the country’s growing Islamic finance sector.
Interest-free banks, often known as non-interest or Islamic banks, operate without charging or paying traditional interest (Riba).
The warning was contained in a press statement issued by the apex bank following the 2nd Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts and the Advisory Committees of Experts of Non-Interest Financial Institutions held at the CBN Auditorium in Abuja.
Speaking through Dr Rita Sike, director of the Financial Policy and Regulation Department, Philip Ikeazor, deputy governor, Financial System Stability, said the rapid expansion of the industry had increased exposure to operational and regulatory vulnerabilities.
The statement read, “The Deputy Governor, however, observed that as the industry grows in size, sophistication, and interconnectedness, it faces unique risks, particularly non-compliance risk, governance challenges, operational vulnerabilities, and emerging technological risks.
“He warned that such risks, if not properly managed, could undermine public confidence, financial stability, and the overall credibility of the non-interest finance ecosystem.”
According to the CBN, the engagement was part of ongoing efforts to strengthen Shariah governance, improve regulatory clarity, and reinforce risk management standards within the non-interest financial services industry.
The apex bank noted that non-interest financial institutions continued to play an increasingly important role in Nigeria’s financial system by providing ethical and Shariah-compliant alternatives to conventional banking.
It stated that the institutions were also contributing to financial inclusion, real sector financing, micro, small, and medium enterprises development, and shared prosperity.
The CBN further explained that the establishment of FRACE and the mandatory constitution of ACEs across all non-interest financial institutions were designed to institutionalise a harmonised governance framework for the sector.
According to the statement, sustained interaction between FRACE and ACEs remained critical to ensuring that regulatory expectations were properly understood and consistently implemented across the industry.
“The objectives of today’s session include fostering the institutionalisation and effective operation of a robust Shariah governance system within Non-Interest Financial Institutions, and providing a structured platform for dialogue, knowledge-sharing, and collaboration,” Ikeazor was quoted in the statement.
In his remarks, Prof Bashir Umar, deputy chairman of FRACE, said the interactive session was aimed at strengthening governance within the non-interest finance sub-sector and promoting constructive engagement between regulators and industry advisory committees.
He also commended the management of the CBN for reviving the session, which was first introduced in 2014.
Earlier in her welcome remarks, Sike reaffirmed the apex bank’s commitment to building a strong and well-governed non-interest financial services industry.
She noted that the growing diversity of products and delivery channels, particularly the emergence of Islamic fintech, had increased the need for stronger regulatory oversight and continuous engagement among industry stakeholders.
“The growing diversity of products, institutions, and delivery channels, particularly with the emergence of Islamic fintech, underscores the need for continuous dialogue, sound regulatory oversight, and robust advisory input from scholars and practitioners,” she said.
The session featured technical presentations on Shariah non-compliance risks in non-interest banks and the role of Islamic fintech in driving financial inclusion.
Participants at the event included members of FRACE, chairmen and members of various ACEs, managing directors of non-interest banks, senior CBN officials, and representatives of the Bank of Industry and the Securities and Exchange Commission.
Federal government is in discussions with the World Bank over a proposed $1.25 billion loan facility aimed at supporting economic reforms, job creation, and competitiveness programmes across Nigeria.
A World Bank document titled Nigeria Actions for Investment and Jobs Acceleration showed the facility has moved beyond the concept and appraisal stages and is now scheduled for a decision meeting ahead of a planned Board presentation on June 26, 2026.
If approved, the loan would become Nigeria’s second-largest World Bank financing package after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The document listed the Federal Republic of Nigeria as the borrower, while the Federal Ministry of Finance will serve as the implementing agency.
It explained that the project is currently at the decision-meeting stage of the World Bank’s project cycle, where final appraisal documents undergo internal review before submission to the Board of Executive Directors for approval.
At this stage, the institution confirms policy actions, financing terms, and reform commitments already agreed in principle between Nigeria and World Bank teams.
It also said the proposed facility will support government efforts to expand access to finance, digital services, and electricity, while strengthening competitiveness through reforms in taxation, trade, and agriculture.
World Bank says loan will support finance, digital access, and electricity reforms
Between June 2023 and May 2026, the World Bank approved about $9.35 billion in loans and credits for Nigeria across key sectors including power, education, healthcare, agriculture, renewable energy, social protection, and MSME financing.
Major approvals during the period include the $2.25 billion RESET and ARMOR reform financing in June 2024, $1.57 billion for HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience projects approved in March 2025.
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