E-Financial
Africa’s Mobile-Money Market to Hit $1.5Bn by 2019
Sub Saharan Africa is adopting mobile financial services at a pace seen in few other places, presenting banks and mobile network operators (MNOs) with a set of strategic choices that will go a long way toward determining their success in the region.
The use of mobile financial services in sub-Saharan Africa to do such things as pay utility bills and send money to relatives could produce an estimated $1.5 billion in fees for mobile-money providers by 2019, according to research being published by The Boston Consulting Group (BCG).
The report says that sub-Saharan Africans are looking for more-secure ways to borrow and save money and are open to other financial products delivered using mobile phones, including loans and insurance.
Although mobile financial services are emerging all over the world, sub-Saharan Africa’s unique circumstances — a combination of a mostly “unbanked” population and heavy mobile-phone penetration — have turned the region into an early adopter of mobile banking and a test bed for the technology’s potential.
Eight of the ten countries that make the most use of mobile financial services are in Africa, and sub-Saharan Africa has the highest proportion of active accounts (43 percent).
With the population in sub-Saharan Africa growing and becoming wealthier, the number of people aged 15 or older with an individual annual income $500 or more will rise to more than 460 million by 2019.
This trend is likely to strengthen as governments in sub-Saharan Africa increasingly focus on their education, health, and security systems — enhancing the potential for long-term economic growth in their countries.
According to BCG, by 2019 there will also be some 400 million unique mobile-phone subscribers and almost 150 million traditionally banked sub-Saharan Africans.
That will leave some 250 million sub-Saharan Africans aged 15 or older who have incomes of $500 or more and mobile phones but no traditional bank account. This gives a sense of the potential market for mobile financial services.
“Mobile financial services aren’t new, but they’re at an inflection point and adoption is accelerating,” said Hans Kuipers, a BCG partner and coauthor of the report.
“This is not something that African banks or MNOs can afford to ignore. A bank or MNO that isn’t active in the market runs the risk of becoming less and less relevant.”
Mobile financial services are “a way for African banks to drive and capitalize on the trend toward financial inclusion,” added Michael Seeberg, a BCG principal and a coauthor of the report.
“Failing to come up with a strategy could erode a bank’s existing customer base as even traditionally banked Africans increasingly turn to the simpler and cheaper mobile offerings.”
For banks and MNOs, a welcome dynamic of the market is its nascent state and the immature vendor landscape. With the exception of m-pesa — a service whose breakaway success in Kenya, the report notes, stems largely from favorable regulatory circumstances — no mobile financial service in sub-Saharan Africa has established an impregnable position yet.
To succeed, banks and MNOs will need to invest in infrastructure, business capabilities, and governance.
A critical piece of infrastructure is a network of agents. These are the physical places where sub-Saharan African consumers can sign up for a mobile financial service and make deposits and withdrawals — the equivalent of the terrestrial world’s bank branches.
Consumer insights are among the important business capabilities. This speaks to a bank or MNO’s ability to identify and develop the offerings that would matter most to consumers. It also has to do with knowing when to introduce different services.
Good governance is critical because of the partnerships that will be needed to create an ecosystem for mobile service offerings. Mobile financial services should not be a go-it-alone proposition; neither banks nor MNOs have everything that’s needed to succeed on their own.
The banks have the back-office systems and the understanding of risk and financial-industry regulations; the MNOs have the access to customers and the relationships with mobile-phone-store operators that could become a foundation for agent networks.
“Banks and MNOs are complementary in this space; each has something the other needs,” Kuipers said. “In many cases, it will make sense for them to team up.”
While it’s true that the market is still coming into focus, it won’t be long before mobile financial services play a significant role in this part of the world.
The technology is here, mobile penetration is deep and growing, and a huge portion of the sub-Saharan population is becoming bankable.
“The vendors that want to establish a strong market position are going to need to find the right partners and start developing an offering,” Kuipers said. “The time to do those things is now.”
Sterling Bank has launched a ₦2 billion scholarship initiative to support Nigerian students in private universities. The program, Beyond Education, was unveiled on Democracy Day and aims to remove financial barriers to higher learning.
The bank will fully sponsor 600 students from across Nigeria’s 36 states and the FCT to study Technology, Finance, Sales, and Public Health at Miva University, founded by Sim Shagaya. The selection process is merit-based, with candidates nominated by themselves or others, and final selection determined through public voting open to Sterling account holders.
Sterling Bank’s CEO, Abubakar Suleiman, described the initiative as an investment in Nigeria’s future, aligning with the bank’s commitment to Health, Education, Agriculture, Renewable Energy, and Transportation. The bank has already deployed over half a trillion naira in financing across these sectors.
According to Obinna Ukachukwu, Growth Executive at Sterling Bank, the program is about creating opportunities beyond education. The bank is shifting from short-term philanthropy to long-term ecosystem development, with investments in digitized healthcare, school financing, agricultural cooperatives, solar energy, and transport systems.
“Nigeria’s progress requires action,” Suleiman said. “We are funding the future architects of the country—those who will build the businesses, institutions, and innovations needed for national prosperity.”
Nominations for the Beyond Education scholarships are now open at www.sterling.ng/FUTURE. The initiative sets a precedent for private-sector-driven education investment, where success is measured not just in profit, but in people empowered.
Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with Investonaire Academy to train 100,000 young Nigerians annually in forex trading, financial planning, and risk management.
The agreement, signed in Abuja, was announced by Omolara Esan, Director of Information and Public Relations at the Federal Ministry of Youth Development. According to her, the initiative is part of the government’s broader strategy to reduce youth unemployment and enhance financial inclusion.
At the signing ceremony, Minister of Youth Development, Comrade Ayodele Olawande, described the partnership as a milestone in the ministry’s efforts to equip young Nigerians with practical financial skills. He emphasized that the programme would foster critical thinking, improve digital literacy, and expand access to global economic opportunities.
Speaking on the collaboration, Dr. Enefola Odiba, International Programme Director at Investonaire Academy, highlighted the importance of empowering youth with relevant financial and digital skills. He described young people as essential drivers of innovation and national development.
The ministry assured that the programme would be implemented with transparency and measurable outcomes, ensuring that participants gain practical expertise in forex trading and financial planning.
The Federal Government has recently intensified efforts to boost skill development across various sectors. A separate plan aims to train 100,000 artisans nationwide, following the successful upskilling of 29,000 individuals in previous phases. This initiative seeks to professionalize vocational trades, eliminate quackery, and introduce licensing systems.
Additionally, technicians from specialized institutions will receive industry-standard training to strengthen Nigeria’s labor force and increase self-reliance in skilled professions.
Through these efforts, the government hopes to position Nigerian youth for economic success both locally and globally.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
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