. . . CBN may issue final license in July
Ben Uzor Jr
Nigeria is gradually moving towards the era of mobile payment system as operators, regulators make every effort to sustain the shift from card-based transaction to mobile-based transaction. Indication however are that some of the 16 companies granted Approval in Principle (AiP) by the Central Bank of Nigeria (CBN) to commence pilot programmes of Mobile Money services in the country have begun submission of trial reports to the apex bank for verification, Business Day can reliably reveal.
Mobile Money Service Providers granted provisional licenses by the apex bank include; Stanbic IBTC Bank Plc, Ecobank Nigeria Plc, Fortis MFB, UBA/Afripay, GuarantyTrust Bank Plc/MTN and First Bank of Nigeria Plc. Others are Pagatech, Paycom, M-Kudi, Chams, Eartholeum, E-Tranzact, Parkway, Monitise, FET and Corporeti. The firms, informed sources told Business Day, are expected to show concrete evidence that 50 customer have carried out live transactions on their mobile payment platforms during the four months trial giving to them by the apex bank.
Other conditions, Business Day further also include: the logs of the transactions, showing dates and time. Besides, each of the 16 companies must submit at least names and locations of 30 agents for verifications. Meanwhile, it was also learnt that the apex bank may issue final licenses in July based on the advice of the auditors. Emmanuel Obaigbona, deputy director, banking and payments system department of CBN at an industry forum recently disclosed that the CBN has invited Enhancing Financial Innovation & Access (EFInA), a body set up to promote access to financial services for the unbanked and under banked in Nigeria to do an audit trail of the operators to ensure that there are no systemic risks.
Obaigbona stated that subsequent to the audit trail, licences would be issued to deserving operators, further adding that any mobile money service providers that fall short of the required criteria for assessment on the pilot by the CBN would not be licensed. Moreover, the apex bank had earlier warned mobile money operators that the approval-in-principle does not guarantee them automatic license after the four month period. According to the CBN, each of the operators must earn their place in the new initiative which is expected to take banking services to underserved and unserved areas.
Emmanuel Okogwale, principle associate, Mobile Money Africa, who spoke with Business Day in an interview, confirmed that mobile money operators had begun submitting trial reports, further stating that the apex bank was checking the provider's processes to validate technology, agency network, risk, customer protection. Okogwale pointed out that the audit is necessary to understand the operations of the providers and if necessary advice them, drop some and approve some as the case may be. “Some of them do have compelling services for the unbanked however, Mobile Network Operators (MNOs) connectivity challenges might be standing in their way but that is not to say they will not pass through.
“The CBN in their wisdom are not looking for perfect systems but checking for vulnerabilities to prevent a systemic risk that will have a knock-off effect not only on primary business of the providers but the whole economy. I welcome the audit process and I also commend the providers that are ready for such audit. It is to all Nigerians advantage to have a working and secure mobile payment system”, he said.
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