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Nigeria Struggles as MM International Remittances’ Boom in Africa

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Nigeria is still struggling while other African countries are enjoying mobile money international remittances and experts who should know are worried.

 

Emmanuel Okoegwale, Principal Associate, Mobilemoney Africa, explained that Mobile international remittance is about convenience and cost saving for the senders and recipients of international remittances.

 

“It makes mobile money more viable for the supply side operators. In some countries in Africa, more than 50% of in-bound remittances already pass through the mobile device with significant cost saving and reach of service. It’s a compelling service anywhere inclusive of Nigeria which is one of the most competitive remittance markets in the world and a top tier remittance destination nation. The adoption of mobile phones, network operations, mobile money with agency network are major drivers across Africa though in Nigeria, the growth is not as robust like across Africa,” he said.

 

He added that international mobile money remittance is an icing on the mobile money cake.” It adds viability to the mobile money operator’s business. International mobile money remittance already exists in Nigeria but adoption is still low compared to direct to account or over the counter cash-outs. One of the reasons can be linked to the size and distribution of the agency network which is required sometimes for cash out. The issue around international mobile money remittance regulation is still there with significant requirements for the licensing; however the regulator is actively pursuing a soft-touch approach to many of such issues now.”

 

On low adoption of Mobile Money in Nigeria, Okogwale said that if agency network size alone is used to measure the mobilemoney adoption in Nigeria, it will be a poor judgment.

 

“Yes, agency network is required however most of the operators are pushing resources into building self-serve channels like USSD, APK, SDK etc to enable the customers transact on their own therefore lower their cost of deploying agency network.

 

“Nigeria is a very large nation and any operator seeking to deploy a well-connected agency network will have to deploy significant resources or it is highly subsidized. The fragmentation of the agency network is a reflection of the market coverage per operators. The agency network cannot grow ahead of their market size,” he added.

 

John Giusti, Chief Regulatory Officer, GSMA, said: “Mobile money is one of the most exciting innovations in financial services, with more than 400 million registered consumer accounts across over 90 countries. While today mobile money services are largely used for domestic transactions, international transfers represent the fastest-growing segment of mobile money services. In just a few years’ time, mobile money has moved from a purely domestic service to one that allows migrants to send remittances between more than 20 countries globally.”


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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