E-Financial
AMMBAN Seeks Enforcement of CBN Guidelines in Tackling Abuses of Agency Banking
The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) has called for more cohesive collaboration among stakeholders in the mobile money and agency banking sector in a bid to sanitize the industry and diffuse the challenges bedeviling it.
Speaking on Wednesday at a press conference in Lagos, in the wake of allegations of lack of coordination and regulation levelled against the sector by a member of the House of Representative, AMMBAN National President, Mr. Victor Olojo noted that the sector is well regulated by the Central Bank of Nigeria (CBN) and has been operating under the regulatory guidelines as stipulated by the CBN.
According to him: “While appreciating the interest of the member of the House, I need to state that the financial inclusion industry in Nigeria is well regulated, and of course the financial sector is well regulated by the CBN, and the Mobile Money and Agency Banking aspect is not left out.”
He however noted that despite the framework issued by the CBN, what is lacking is enforcement. “What we are seeing is somewhat close to an abuse, a clear violation of what the framework issued out by the CBN states. One of the frameworks states that a Mobile Money or Bank Agent should be located in a brick and mortar location, an address that is traceable.
“But what we have today are agents under umbrellas, trees, and agents who are hawking with terminals. And for a very long time as early as 2021, we had written to various stakeholders highlighting these issues of concern to us.
“So, we are happy that finally this is coming out to the fore. We believe that what is lacking is enforcement. And as an association we have already taken steps in ensuring that these issues are being addressed.”
Olojo therefore called for collaboration among the various stakeholders to ensure that there is a streamlined operation in the sector, according to CBN guidelines.
Also speaking at the event, AMMBAN National PRO, Oluwasegun Elegbade highlighted the position of the Association.
The AMMBAN secretary disclosed that one of the strong resolutions that emanated from its Annual National Conference held in Abuja last year, along with robust deliberations with all critical stakeholders, was to begin to self-regulate using a special AMMBAN task force.
He explained that the Association serves the interest of all Mobile money and Bank agents in Nigeria. and is duly registered and recognised by the CBN and other relevant players in the mobile money and Agency banking sector of the country.
According to him, AMMBAN is currently in a process of taking necessary steps to ensuring that its “business space is rid of unscrupulous elements and their activities capable of derailing the laudable intentions of the government at ensuring poverty alleviation by deepening financial inclusion to the last mile. Our sincere motive and prayers have been to bring sanity to bear in our business space.”
He emphasized that Mobile money and Agency Banking are deliberate innovations of the government, which creation was borne out of the goal to ensuring all Nigerians of bankable age are financially included.
He further noted that the critical activities of mobile money and bank agents in Nigeria have, in no small measure, contributed to the enviable achievements being witnessed by the country in the financial Inclusion drive and we are proud to be a critical part of this initiative.
While acknowledging that while AMMBAN “wholeheartedly agree that the effective enforcement of regulation guiding the industry is long overdue, we will also like to correct some wrong impressions expressed in the motion moved by Honourable Jimoh Olajide as published in some National dallies on the 3rd of March, 2022.”
Elegbade while noting that in most cases member agents are the victims of fraud cases, however, said that the worrying realities lay credence to AMMBAN’s consistent calls for effective enforcement of the guidelines in the industry through the Licensed Operators.
“There is need for proper supervision of entry and conduct of activities of all players in the value chain. Agents are mostly the victims of the many crimes committed in our business space today as highlighted on the floor of the House.
“Many criminals parading themselves as customers in dire need of cash or other financial services have mastered the act of cloning bank alerts and using same for exchange of cash from the outlets of unsuspecting agents. We have instances where the sum of money involved in such incidences is so huge that the agents involved became insolvent.”
On efforts put in place to ensure adherence to CBN regulation, AMMBAN President, Oloja disclosed that the Association has been organising training and retraining exercises to ensure that the framework issued by CBN is strictly adhered to. “We have been training and retraining our members on what the expectations are.
“We know there was a time when there was rumours and concerns that agents were taking out details of customer. But we know that no member of the Association of Mobile Money and Bank Agents will do that. Our members are well traceable, we have our database.
We cannot say that for a fact that unscrupulous individuals now have access to PoS terminals , that is why we have continued to raise our voices from time to time to say that there is need for more coordination among the players of Mobile Money and Agency Banking in Nigeria.
So, for a fact, there are concerns, but we want to say that bulk of the issues are not from the side of the agents, but there is a need for all players to come together to see how we can address these issues.
He also disclosed that as an internal measure at AMMBAN, the Association has launched a monitoring and evaluating unit, the AMMBAN Task Force, to ensure that Mobile Money and Bank Agents registered under AMMBAN play by the rules.
Across our state chapters within the country we have been cooperating with security agencies like the DSS, the Police in addressing issues of counterfeit currencies, fraud and the likes.
He however lamented the pressure on member agents who are made to be on the receiving side whenever there is an issue, sometimes being forced to pay for customers’ loses, even when they provide all evidences required in the pursuit of fraud cases.
“We have a robust working relationship with the CBN, and others who are working towards deepening financial inclusion in Nigeria, including CBN’s Development Finance Department (DFD), Shared Agent Network Expansion Facilities (SANEF) and Enhancing Financial Inclusion Access, (EFInA)”, Oloja noted.
As part of the commemoration of 2024 International Fraud Awareness Week, PalmPay over the weekend organized anti-fraud walk in Ikeja area of Lagos aimed at educating Nigerians on the need to secure their personal transactions information against fraudsters.
Mr. Chika Nwosu, managing director, PalmPay speaking at the event expressed PalmPay’s commitment to ensuring a safe financial ecosystem as events like this are central to that mission.
“This global initiative underscores a pressing issue that touches individuals, businesses, and economies alike—fraud. This week serves not only as a reminder of the pervasive risks posed by fraud but also as a call to action to combat it through education, awareness, and collaboration.
“Fraud is more than just a crime, it is a systemic threat that undermines trust, compromises security, and disrupts progress. Its effects are far-reaching, impacting personal livelihoods and the integrity of businesses.
“As digital payment platforms rapidly expand across Nigeria, fraudsters have unfortunately seized the opportunity to exploit vulnerabilities in the system. Mobile, web, and POS channels are now prime targets for criminal activities. Recent statistics from the Financial Institutions Training Centre (FITC) reveal that over 11,500 fraud cases were reported in Q2 2024—a stark reminder of the growing sophistication and persistence of these threats. These figures are more than numbers; they represent real people whose trust has been broken and whose finances have been compromised.
“Fraud prevention is a collective effort. Individuals, businesses, and governments must work together to build a robust defense against this menace.
“On the people side, we need to educate people on the need to safe guard their PIN because when you compromise your PIN if fraud happens from that end it will not be our fault. It is better we educate people to be aware so that they don’t compromise their PIN or password.
“At PalmPay, we recognize that combating fraud begins with awareness. That is why we have taken a proactive approach to ensure that our users and the broader community are equipped with the knowledge and tools they need to stay protected.
“Our campaign this week focuses on empowering individuals to safeguard their digital identities, spot fraudulent schemes, and take swift action when they encounter suspicious activities,” he stated.
He highlighted some of the key lessons for fraud prevention to include:
- Stay Informed: Regularly update yourself on emerging fraud tactics and the steps to counter them.
- Protect Your Information: Safeguard personal and financial details, using strong passwords and secure platforms.
- Verify and Report: Always verify requests for sensitive information and report suspicious activities promptly.
- Educate Others: Share what you’ve learned with family, friends, and colleagues, creating a ripple effect of awareness.
At PalmPay, we are deeply committed to leading the fight against fraud. This commitment extends beyond our platforms and services. It is reflected in our efforts to collaborate with industry stakeholders, engage with communities, and invest in cutting-edge security technologies.
Kayode Falowo, Chairman of Greenwich Merchant Bank Limited, has been bestowed with the Sir Henry Fajemirokun Prize for Outstanding Leadership in recognition for actively promoting Nigerian-British bilateral trade.
The Award which seeks to celebrate and acknowledge business magnates and industry leaders who are instrumental in driving bilateral trade forward was presented at the Nigerian-British Chamber of Commerce (NBCC) 2024 Presidential Dinner & Award Ceremony, held in Lagos on the 20th of November, 2024.,
As part of his leadership roles, Falowo is the immediate past President and Chairman of the Council of the Nigerian-British Chamber of Commerce.
A seasoned Investment Banker who is very passionate about the development of the Capital Market in Nigeria, he was also a Council member of the Nigerian Stock Exchange and once served as the Chairman of the Capital Market Committee on Products and Business Development.
Falowo currently sits on the Board of the National Association of Securities Dealers (NASD) Plc, where he is also the Chairman of the Rules Committee.
Meanwhile, the Chairman of Greenwich Merchant Bank also received another award for his contribution to the success story of the Anglican Diocese of Lagos West in the past 25 years.
Speaking on the commitments to supporting businesses between the countries, the NBCC President, Ray Atelly commended the recipients of the various categories of Awards for actively promoting Nigerian-British trade relations.
“Tonight, we celebrate the achievements of individuals, private-sector giants, and corporations who have not only excelled in their respective fields but have also actively promoted Nigerian-British trade relations.
“They have elevated standards, driven innovation, and demonstrated the profound impact of collaborative success. Our awardees tonight embody the spirit of progress.
“Their successes affirm the power of dedication, resilience, and the far-reaching impact of a shared vision,” Atelly said.
Dr. Jumoke Oduwole, Minister of Industry, Trade and Investment, and other stakeholders who commended the Award recipients also underscored the importance of advancing bilateral trade relations between Nigeria and UK.
Oduwole said the Federal Government was committed through reforms, trade facilitation, investment promotion and industrial policy to drive economic diversification and inclusive growth.
She said that the government aligned with the NBCC initiative to ensure that Nigerian businesses were well positioned to compete globally while benefitting from Britain’s trade investment and expertise.
The Miniter noted that the trade relationship between both countries was valued at 7.5 billion pounds with Nigeria exporting approximately 2.5 billion annually.
Economic and Financial Crimes Commission (EFCC) has warned banks against making themselves available as instruments of fraud.
Ola Olukoyede, charman, EFCC, issued the warning on Friday when the management team of Moniepoint, led by Tosin Eniolorunda, its founder and Group CEO, paid a courtesy visit to the commission’s headquarters in Abuja.
Speaking through Michael Nzekwe, his chief of staff, the EFCC boss noted that Nigerian banks over the years have become notorious as conduits of financial crimes and advised them to turn a new leaf for the sake of the growth of the country.
“There’s hardly any financial crime that would not go through the financial institutions. Money laundering is a major issue and you find out also that the perpetrators go through the banks. Nigeria will be the greatest beneficiary when we do the right thing,” he said.
Addressing the Moniepoint delegation, Olukoyede said, “Try as much as possible on your own to avoid any form of connivance and don’t be a channel for money
“Don’t be a tool. Don’t make your system porous. You are a major stakeholder when it comes to the fight against corruption. We are open and would assist, however we can. No one is above the law”.
Olukoyede observed that there was a high level of poor internal control by fintechs at the level of the unbanked, the under-served and the middle class population spectrum.
“There’s quite a whole lot of fraud that goes around that particular level, so the issue of KYC (Know Your Customer) is very important, especially because of the issue of how fintechs open tier-one accounts, sometimes without attention to KYC.
“And people take advantage of this and are quick to commit fraud through this negligence. So, that’s one area you have to also look at to see how you can improve on your KYC.
“Increasing your level of collaboration with the EFCC would mean to see yourselves as stakeholders in the fight against corruption.
“We would like you to be able to respond to us when we make inquiries and when we make requests.
On EFCC’s readiness to collaborate with Moniepoint, Olukoyede stated that, “On our part, we are open to whatever it is that you want us to do. We value it that you are here today to seek a stronger tie and collaboration.
“When we have stakeholders come in and want to be part of what we are doing, majorly stakeholders like you, it gives us joy because we know that no one man can fight corruption alone.
“The collaboration you seek tells us that you want to strengthen your system; you want to be able to create more internal controls. You want to be able to put in place things that will mitigate those weaknesses that will lead to fraud within your system, that’s what we do. Our core mandate is enforcement and investigation of economic and financial crimes. So, we’re glad and wish to collaborate with you”
Earlier in his remarks, Eniolorunda noted that the expansion in the operations and services of the fintech and microfinance company have come with challenges which have made the need for a strategic collaboration with the EFCC compelling.
“Moniepoint has over the years grown to become one of Nigeria’s largest payment service providers and the bank for mostly mid-class businesses and the under-served.
“Today, Moniepoint processes roughly 70% of Nigeria’s payments on Point-of-Sale (PoS) and transfers. We are present also in the UK and we are going through some potential set-up also in Kenya, which is at an advanced stage with its Central Bank. And also in Tanzania.
“Of course, with all this growth comes also challenges. One of the biggest challenges is the nature of our country, where if people find the opportunity to make fast money, they will make fast money. And we have realised that as Moniepoint is helping people make ends meet, these sorts of people are also trying to use Moniepoint channels to achieve their criminal objectives.
“So, we are actively fighting, improving all the necessary KYC accounts, money laundering and fund protection systems, but we know that we can’t do this alone. There are experts in a government organisation like the EFCC that we believe we need to have a strategic relationship with to be able to fight these people together.
“There are intels that you see that we don’t see. There are many things that come across your desk, every day that we don’t see. There are also things that we see that we think that if we should show to you, we will all be able to come together and fight these bad guys. We have, over the years improved on many things; discover a lot of potential fraud, collaborated with law enforcement agencies.
“With our whole management team, we will be able to find a strategic partnership with the EFCC that would take us to the next level.
“So we need to quickly build stronger alliances to prevent any form of risks that will blossom into national security issue,” he said.
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