E-Financial
Mobile Tech Tap to Drive Africa’s Financial Inclusion
New research urges African governments to work collaboratively with all role-players to introduce strong mobile tech-driven financial innovations in support of national development priorities and the social development goals (SDGs).
The study, “Digital finance platforms to empower all”, released last week by Vodafone Group, Vodacom Group, Safaricom and the United Nations Development Programme (UNDP), says this is how countries can accelerate progress and increase the impact of financial inclusion.
“The impact is potentially staggering, with the International Finance Corporation estimating digital finance has the potential to boost annual GDP of emerging economies by $3.7 trillion by 2025,” the report reads.
The analysis was conducted as part of the three telcos’ Africa Connected campaign, an initiative to drive sustainable development through collaboration and help close the divides that prevent progress in Africa’s key economic sectors.
The research, which examined 49 countries in Africa, Asia and Latin America, found that countries with successful mobile money services had an annual GDP per capita growth rate up to one percentage point higher than countries where mobile money platforms had not been successful or not introduced.
It says: “As post-pandemic economic recovery continues, with the cost of living and climate crises intensifying, governments are encouraged to leverage mobile financial services to strengthen financial inclusion, which increases economic resilience and furthers sustainable development.
“When managed correctly, mobile financial services can not only drive financial inclusion, poverty reduction and economic growth, but can also accelerate progress around the SDGs more broadly.”
According to the study, collaboration and strong partnerships underpin this success and will drive future acceleration of progress.
As such, it says, governments and multilateral organisations should engage all stakeholders, including the UNDP, the Africa Connected campaign, and other telecommunications, fintech and finance businesses, to make the recommendations discussed in this report a reality.
“In doing so, Africa can continue to equitably expand access to mobile financial services, with all stakeholders working together to ensure these services are delivered in a responsible way that unleashes their full potential on SDG achievement to uplift and empower all citizens.”
Principals of the report call upon African governments to urgently create an enabling legal and regulatory environment.
They say policy-makers must create an open and level playing field where financial regulators allow both traditional banks and non-traditional financial service providers to operate.
This, they say, will allow digital finance innovation to flourish through greater interoperability and openness of payment rails.
Aiaze Mitha, global lead, digital finance for the SDGs, at UNDP, says technology transformed financial access for Africans.
In the last decade, he says, more of the population has gained access to basic financial services, with the figure increasing from 23% of the population in 2011 to around 55% in 2021.
“A lot of that has been unlocked through mobile financial services, simply because more people have access to a connected mobile device.
“These services are complemented by a physical network of agents, who allow people to convert cash into digital currency so that they can start stepping into the formal financial system and start building up a credit history that will enable them to qualify for more sophisticated financial services.”
Looking ahead, Mitha notes there are a few obstacles Africa still needs to address around financial inclusion.
“First, there’s access to affordable mobile financial services, which includes such things as digital connectivity, devices and cost of broadband access. I’d say digital identity is also an issue.
“Being able to identify yourself so that you can access financial services is a major obstacle because there is a lack of digital identification in many countries across the continent.
“Fortunately, there are several players coming together to ensure digitalisation does not widen the digital and financial divide. In that sense, building capacity around financial and digital literacy will be a key element of greater, more qualitative financial inclusion.
“Finally, the notion of embedded finance must be raised. Many people will use financial services for a purpose, to fulfil a specific need, not just for the sake of it. For example, financial services are being built into specific e-commerce, transport, mobility, or social experiences and use cases.
“This will most likely open new avenues for even greater inclusion once people have the tools and connectivity to engage with these use cases.”
Ecobank Nigeria has announced plans to phase out its Naira-denominated Mastercard debit cards, with a transition period scheduled to run from July 29 to September 29, 2025.
The bank disclosed the development in a message sent to customers on Wednesday, urging account holders to switch to a Verve debit card available free of charge.
According to the notice, the bank’s decision is part of a broader effort to enhance security and ensure smoother digital transactions for customers.
“As part of our ongoing commitment to delivering secure and efficient banking services, we will be phasing out the Ecobank Naira Mastercard,” the statement read.
“In its place, we are pleased to offer you a free Verve debit card to ensure a seamless transition.”
The bank said the Mastercard deactivation would take full effect from September 30, 2025, saying that customers are therefore advised to collect their Verve cards before the deadline to avoid service disruption.
Ecobank also assured customers that the new Verve card would support payments across several digital platforms, including Google Play, YouTube, TikTok, Spotify, Netflix, Prime Video, AliExpress, Zoom, Microsoft, LinkedIn, Starlink, Audiomack, and Uber.
“It will also remain functional for ATM withdrawals and Point-of-Sale (POS) transactions nationwide.
“To obtain the replacement card, customers are instructed to visit the nearest Ecobank branch, request the Verve debit card, and collect it at no cost,” the bank said.
The move follows a growing trend among Nigerian banks to prioritise local card schemes like Verve, which are often more cost-effective and resilient to international payment disruptions.
Central Bank of Nigeria (CBN) has dismissed claims that its recent redeployment of staff from Abuja to Lagos State was politically motivated.
Muhammad Abdullahi, deputy governor, economic policy, made this clarification known at a two-day Interactive Session on Government-Citizens Engagement in Kaduna on Wednesday.
Recall that the CBN had in 2024 rolled out its Early Exit Package (EEP).
As part of the policy, the apex bank reduced its staff strength in Abuja Headquarters.
The decision had been greeted with controversy, with some critics claiming the move was targeted at the banks’ workers from Northern Nigeria.
However, Abdullahi has clarified that the policy was not targeted at anybody.
He noted that a recommendation from the banks’ insurance provider concerning workplace safety triggered its decision to decongest its Abuja headquarters.
“It is not an agenda against anybody,” he stated.
He said, “Some of those staff members taken to Lagos and Kaduna are now so happy they don’t even want to come back to Abuja.
He also dismissed claims that CBN deliberately removed 16 directors, particularly from the Northern region.
“There are many directors from the Northern region currently serving in the bank,” he stated.
He stressed that the son of the country’s secretary to the government of the federation was also redeployed from Abuja to Lagos.
“The son of the Secretary to the Government of the Federation was also moved from Abuja to Lagos. Nobody was spared—it is a policy of the bank,” he stated.
Nigerian banks have resumed processing international tuition payments from Naira accounts through the Central Bank of Nigeria (CBN)’s Form A portal.
Form A is an application form designed by the Central Bank of Nigeria to pay for service transactions (invisible trade).
The form allows customers to purchase foreign exchange at the CBN or interbank rate to make payments for eligible services as predetermined by the foreign exchange manual.
This development comes a month after commercial banks announced the resumption of international transactions on their naira cards.
In an email to customers, Guaranty Trust Bank Limited (GTBank) and Lotus Bank announced that the service is now available for applicants paying undergraduate and postgraduate tuition fees abroad.
“Pay international tuition fees directly from your Naira account,” the notice from GTBank read.
To access the service, customers are required to register and submit their applications via the Trade System Portal at www.tradesystem.gov.ng.
GTBank explained: “Select the ‘Form A’ application for Educational Fees. Choose GTBank as the processing bank, attach required documents, and submit the application.”
Similarly, Lotus Bank stated, “Register on the Trade System Portal. Select Form ‘A’ application for Educational Fees. Choose Lotus Bank as the processing bank, attach required documents, and submit the application.”
In a similar notice, Lotus Bank also informed customers of processing international fees using its facility.
“Register on the Trade System Portal (www.tradesystem.gov.ng). Select Form ‘A’ application for Educational Fees. Choose Lotus Bank as the processing bank, attach required documents, and submit the application,” the bank said.
In 2022, Nigerian banks said international school fees and upkeep requests via Form A will be processed within 120 days due to forex scarcity at the time.
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