Telecom

Mobile Payment: Potential and reality for Nigeria

Published

18 years ago

January 19, 2009

Kindly share this post

The ability to pay for goods and services without having to carry cash or cards has universal appeal. In Africa it is being driven by the need to reduce the risk of theft. The mobile is ideal because it is cheap and ubiquitous and can authenticate the payer and payee and record the transaction. The recent re-awakening of initiatives in the mobile and financial industry on mobile banking and payment services is causing a stream of field trials and potential new revenue streams and customers for the financial services sector.
The mobile payment industry will change the way consumers interact with financial services and make payments. Mobile financial services will include consumer accounts information, updates, alerts, bill payments, person to person transactions and remittances.
The mobile will play a key part in the foundation of sustainable development in Nigeria. In a country where electricity and transportation are unreliable, the mobile phone is a driving force for change – and not just for voice calls. Mobile phones can address one of the biggest cost barriers in the value chain.
The success of M-pesa in Kenya has demonstrated the strong compelling need for a platform that can empower Africans to make transaction cashless and without need to visit a Bank. Nigeria’s seeming slow uptake of mobile payment presents a huge opportunity that can revolutionize the payment world, create new set of mobile entrepreneurs and new Business models with strong value realization in a market of 54 million mobile subscribers and an addressable market of 140 million people.
The mobile phone is a powerful channel for developing business. The Banks can still not yet win the youth segment accounts because they are approaching them via traditional channel and not what they always have with them, the mobile phone. The youth segment will most likely adopt mobile payment faster than the older segment because they are early adopters of technology and the good news is that they constitute a large segment in the mobile subscription pyramid in Nigeria and still largely unbanked or under-banked. Simple arithmetic from total subscriber base in Nigeria, shows that 54 million mobile subscription base is twice the Bank account holders of about 24 million, this clearly shows a huge 30 million people out there with mobile phones but without a Bank account.
Nigeria financial industry players seeks elusive mobile technologies and standards but slow progress is being made towards achieving interoperable and transparent standards for mobile payments. The process is complicated by the large number of stakeholders involved, in addition to the challenge of integrating various business models and technology layers into one platform. Even the term ‘mobile payments’ has different definitions. While some Banks currently offering Mobile Banking are erroneously classifying their service as mobile payment even when the subscribers cannot do more than check account balance or transfer money between self account in same Bank.
Wizzit in South Africa, M-pesa in Kenya, Gcash in Philippines are country with similar demographics with Nigeria are examples of very successful mobile payments deployments.
Mobile operators are known not to be very adept in providing core payment and financial services, hence there is need for cross industry collaborations like what we have seen in the Glo / First bank cash card and the MTN / UBA x-change cards. Such collaborations is paying off in the mobile Banking arena in South Africa’s MTN and Standard Bank’s partnership. In South Africa, MTN, launched a SIM-based m-banking service with Standard Bank in a 50:50 joint venture, MTN MobileMoney. The Y’ello Bank, as it is often referred to after MTN’s pan-regional Y’ello branding campaign, operates as a separate division of Standard Bank, and as such is regulated under Standard Bank’s banking licence which brings compliance and interoperability to the rest of the payment infrastructure.
Many Nigerian Banks are evaluating different mobile payment systems from offshore providers but they are yet to learn from Africa’s own painful experiences in wap Banking. Offshore transfer of WAP banking technology was a disaster because an internet-based technology was applied to the mobile phone, resulting in an experience that was slow, unreliable and costly for consumers in a continent with expensive mobile internet cost, poor coverage, hand set limitations and inadequate customer education. Simpler technologies would have achieved more.
SMS text messages will continue to be the dominant channel for mobile payments, although take-up of WAP, USSD and near field communications (NFC) contactless services will also grow. NFC technology seems to be attracting attention of players in Nigeria because of its ease of use and the European Hype but they are not factoring the end user into the plan at this early stage. The main draw back for NFC is that users will require acquiring NFC enabled handsets and that will be a major obstacle in a economy where income per head is low and average Hand set replacement rate is four years.Near sound Data transfer technology of the likes of Tag attitude of France are clear bridge gap measures not requiring any form of new hand set acquisition from the end user and it is immediately compatible with all Phone models.
Already, informal exchanges of Mobile Airtime locally in Nigeria accounts for over 5 percent of airtime purchases and Banks might start losing market share if people find it more convenient to move money around and repay their debts, send little amounts to friends and relatives via this informal channel for small value payments.
A mobile payment system therefore needs to adapt its technology and business model to its specific target demographic and not the other way around. The potential for mobile payments, especially in emerging markets where many people are unbanked and few other payment options exist, is obvious. In developed countries, on the other hand, these types of services will likely appeal more as a matter of convenience and extension of the other payment options available, rather than as a replacement bank.
Mobile payment is not a problem of technology. It is the management of the ecosystems of players like Banks which lack the technology, telcos industry non collaborative positions and inadequate understanding of financial matters and lastly, regulations which does not take into consideration, the speed of technology innovation that will hinder the growth of the sector that is already striving underground though not illegally but informally.

Kindly share this post

Telecom

Airtel Nigeria Expands Retail Footprint to Strengthen Customer Access Nationwide

Published

7 hours ago

July 22, 2026

Chike Onwuegbuchi

Kindly share this post

Airtel Nigeria has strengthened its nationwide retail and distribution network as part of its continued investment in enhancing service delivery and making telecommunications and digital services more accessible to millions of Nigerians.

The company’s retail ecosystem comprises more than 4,000 exclusive Airtel shops and over 200,000 retail touch-points nationwide, including partner stores, channel partners and neighborhood agents. This network ensures that subscribers can conveniently easily access SIM registration, device purchases, airtime and data recharge, customer support and other digital solutions.

Commenting on the company’s retail distribution strategy, Dinesh Balsingh, CEO, Airtel Nigeria, said,

“Telecommunications goes beyond the physical infrastructure, it is important that we are able to reach people where they live and work. That is why we continue to invest in a strong retail and distribution ecosystem that enables us to bring Airtel closer to our customers while delivering a consistent, high-quality experience wherever they are.”

According to Joypratip Sengupta, Director, Sales and Distribution, Airtel Nigeria, the company’s distribution network plays a vital role in ensuring seamless service delivery.

“Our retail network is designed to ensure that our services reach customers efficiently. It is a combination of efficient logistic systems, strong partnerships and local engagement that enables us to consistently meet the needs of our customers across the country,” he said.

The strengthened distribution strategy complements the company’s ongoing investments in network infrastructure and digital innovation, recognising that customer proximity remains a critical driver of service excellence and digital inclusion.

In addition to improving customer access, Airtel’s extensive retail ecosystem continues to create economic opportunities for thousands of entrepreneurs, distributors, retailers and small business owners who form an integral part of the company’s value chain.

As demand for accessible, interconnected digital services continues to grow across Nigeria, Airtel remains committed to investing in improving its service delivery and ensuring that every subscriber enjoys quality service.

Kindly share this post

Telecom

Kaspersky Survey Highlights the Need for Smartphone Security

Published

7 hours ago

July 22, 2026

Chike Onwuegbuchi

Kindly share this post

Kaspersky’s latest global survey shows a change in how people go online: 60% of survey participants from the Middle East, Turkiye, and Africa (META) region now claim their smartphone is the main device they use to access the Internet, pushing the PC into a secondary role.

But as the amount and sensitivity of data stored on these phones keep growing, cybersecurity experts warn that users’ security habits aren’t keeping up.

According to the survey* 60% of respondents from the META region consider a smartphone their primary device for accessing the Internet. The most active smartphone users are representatives of Gen Z, with 67% of all global respondents aged 18-28 choosing a mobile phone as their main device.

With mobiles as the full-fledged rivals of computers in accessing the Internet, the amount of important data stored on them has also increased significantly. Personal photos and videos are leading the pack. 60% of users in the META region store visual memories on their devices. Close behind are contact details (51%), text messages and chats history (45%) and important personal documents such as IDs and passports (43%).

At the same time, a substantial portion of users in the META region keep work‑related data on their smartphones (37% emails, 22% calendars and 17% even store access to corporate systems), blurring the line between personal and professional realms.

Financial credentials and login details appear on 40% of devices, while emerging categories like AI chat histories (30%) and gaming accounts (26%) signal new types of personal data stored on personal devices.

“Now our smartphones serve as full‑featured assistants that touch every aspect of our lives. The data we entrust to them goes far beyond photos, phone numbers or text messages. Consequently, the main question is no longer “what we store,” but “how we protect it,” requiring security to become as integral to the device as the data it carries,” comments Anton Kivva, cybersecurity expert at Kaspersky.

Three keys to mobile data security

To help users navigate this new digital reality safely, Kaspersky experts have issued a three-step security plan:

No data should live on your phone only

A smartphone should never be the sole repository for any type of information. While having everything at your fingertips is convenient, accidental deletions, loss or hardware failure can make recovery impossible without reliable backups or cloud sync.

The most sensitive data like passwords, ID or financial details requires special attention and preferably be kept in a protected format. Use a dedicated security solution like Kaspersky Password Manager, which apart from securely keeping credentials and bank cards, has a special secret vault functionality aimed at storing important documents, for example, scanned Passports/IDs and PDF files, addresses and notes. Thanks to the cross-device synchronisation it allows access to the data from any gadget.

Create a guard against digital threats

In Q1 2026 only, more than 2.67 million attacks utilising malware, adware or unwanted mobile software were prevented and more than 306,000 malicious installation packages were discovered.

Mobile devices require the same cyber protection as PCs. Kaspersky experts recommend cybersecurity solutions such as Kaspersky Premium that provide comprehensive protection – starting with scanning apps for potential threats upon installation, and using AI‑driven features to block malicious and phishing links in real time and prevent data or money losses, among many other security layers.

The “what if” scenario planning

Phone loss always occurs unexpectedly, but a few proactive steps can dramatically reduce its impact:

Turn on location services. Both Android and iOS include built-in tools that can locate a lost phone and, if needed, wipe its data remotely. Kaspersky for Android app activates this capability through the Where Is My Device feature.

Enable automatic backups.Regular backups ensure that photos, videos, documents, contacts and other vital data can be restored even if the device is lost or stolen.
Configure instant auto‑lock.Setting the phone to lock immediately after the screen turns off keeps it inaccessible to thieves or cyber‑criminals when you’re not using it.
Keep the device physically safe.In public spaces, never leave your phone unattended or within easy reach, avoid placing it on tables, in back pockets or any other vulnerable spot.

“We often underestimate how much valuable information we keep on our mobile devices and how vulnerable that data truly is. Ask yourself: When was the last time I backed up my photos or notes? What’s my plan if my phone goes missing? Do I verify links before I click them? While most users automatically think of security software for their computers, phones lag behind. It’s time to give your everyday digital companion the same robust cyber‑protection it deserves,” adds Anton Kivva, cybersecurity expert at Kaspersky.

Kindly share this post

Telecom

Why Africa’s Top ICT Ministers Are Gathering in Abuja This Week

Published

7 hours ago

July 22, 2026

Ugo Onwuaso

Kindly share this post

Nigeria will host telecommunications, Information and Communication Technology (ICT) and digital economy ministers from across Africa for the 7th Ordinary Session of the African Telecommunications Union (ATU) Conference of Plenipotentiaries (CPL-26), scheduled for July 23 to July 24 in Abuja.

The conference, the highest decision-making body of the ATU, is expected to bring together ministers, regulators, industry leaders, development partners and other stakeholders from the Union’s 52 member states to deliberate on Africa’s digital and telecommunications agenda for the next four years.

A statement by the organisers said delegates would adopt the Union’s strategic direction, approve its 2027–2031 budget and work programme, elect a new Secretary-General and determine the composition of the Administrative Council.

The conference will also harmonise Africa’s common positions ahead of the International Telecommunication Union (ITU) Plenipotentiary Conference scheduled to hold later this year in Doha, Qatar.

The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, described the conference as a significant milestone for Africa’s digital future.

“Nigeria is honoured to host the 7th Ordinary Session of the ATU Conference of Plenipotentiaries at a defining moment for Africa’s digital future.

“As countries across the continent accelerate digital transformation, it is increasingly important to strengthen regional cooperation, develop common positions on emerging technologies, and create enabling environments that attract investment, build digital talent and expand meaningful connectivity.

“Our role as host reflects the commitment of President Bola Ahmed Tinubu to building an innovation-driven economy while strengthening African cooperation on digital infrastructure, technology governance, skills development and investment,” he said.

One of the major highlights of the conference will be a ministerial dialogue on “Achieving Africa’s Meaningful Connectivity,” jointly organised by the ATU and the GSMA.

The dialogue will explore practical strategies for expanding affordable, reliable and quality connectivity across the continent, with emphasis on infrastructure investment, service quality, affordability and ensuring that digital access delivers tangible economic and social benefits.

Also speaking ahead of the conference, the Secretary-General of the ATU, Mr John Omo, said the meeting would provide member states with an opportunity to strengthen the Union’s capacity to drive Africa’s digital ambitions.

He said the decisions to be taken in Abuja would shape the ATU’s ability to support national priorities, sustain Africa’s participation in global telecommunications forums and respond effectively to emerging technological developments over the next four years.

The conference is expected to conclude with the adoption of the Abuja Declaration, which will provide governments, regulators, industry stakeholders and development partners with a common framework for advancing Africa’s digital transformation agenda.

According to the organisers, hosting the conference underscores Nigeria’s commitment to regional collaboration and reinforces the country’s growing leadership in digital policy, technology governance and investment promotion across Africa.

Kindly share this post