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Expert Calls for Risks Mitigation on Mobile Payment
Emmanuel Okoegwale, principal consultant at MobileMoneyAfrica, has said that there need proper understanding of the risk involved in providing financial services through the mobile phone to banked and unbanked populations using the agent networks.
Okoegwale’s call came on the heels of the expected licensing of applicants from financial institutions and independent providers forming consortia eagerly to provide mobile payment in the country.
He told Nigeria CommunicationsWeek that the mobile payment industry will change the way consumers interact with financial services and make payments.
According to him, mobile financial services will include consumer accounts information, updates, alerts, bill payments, person to person transactions and remittances.
Okoegwale said to achieve this that there are several risks to be dealt with and mitigated with workable and proven approaches in a new entrant country like Nigeria.
He said, the outcomes of not putting mitigants in place might be severe and will determine the success of the outcomes.
According to him, there are numerous risks like systemic, reputation, liquidity, legal and operational.
The consumer is to be protected and potential effects of risks mitigated so as to establish service level that can protect them. In situation where there are shortcomings, the consumer will be faced with some situations that might have significant negative effect on service delivery.
Scenario One
Customer is charged illegal side fees that are not authorized by the mobile money provider?
Agents are signed on to serve the provider as the last mile to the customer and most customer facing transactions will take place at the agent point. Agents can take advantage of customers’ illiteracy or limited pricing information to charge extra charges. This presents operational and reputational risk for the providers.
The mitigation for the above will include, providers using picture based simple diagrams to explain fees charges for different service levels and must be conspicuously displayed at all agent locations. This should also be translated into different local languages and mandatory pricing disclosures must be strictly managed at agent locations.
In case of customers attempt to seek pricing clarification from provider aside the agents, providers support centres should be accessible and able to provide such information in a clear and easily understood format.
Scenario Two
Provider’s Agent collected cash from client but fails to provide e-money or transfers the amount to recipient bank account or desired third party.
Agent receives funds from a service user but misdirects funds to the agent’s own benefit. This situation could arise in one of two ways:
The consumer could be an existing customer without their phone with them, so they would not receive the transaction confirmation while with the agent.
The consumer may not be a customer but requests that the agent sends money to an existing customer, so does not receive independent phone confirmation of the transaction.
Mitigation:
Require that service users receive, and know they have a right to receive, clear confirmation that funds have been received and where they have been directed. This may include a paper receipt, if the customer does not have a phone. Service providers should also enforce transaction log books to be signed off by the agent and end users. This can be the only evidence that will be available for a future audit trail.
End user education and awareness that users should have their cell phone available to ensure receipt of transaction Confirmations. Cell battery level should be checked before transactions and sms inbox availability is key.
The above scenario is a Reputational risk which could also lead to legal risk.
Scenario Three
Individual poses as agent to collect deposits or payments from unsuspecting customers. Some criminal elements will take advantage of the new systems to defraud end users by posing as agents especially in the rural outpost or busy commercial centres to pose as agents.
First steps is to rely on the end users education to transact only at recognized and registered agent location with consistent and verifiable Agent ID which is clearly displayed at the agent location and in some cases where rogue agents are on the increase, providers may adopt a colour code same method used by Mobile network operators at airtime vendors outlets.
Ability for any user to check status of agents anytime should be build into the system. Some agents might had been decommission or deactivated but are still actively trading. Simple sms solutions like sending agent ID to a short code should be provided. Example,send LAG 027 to short code 3030 ( where Lag means Lagos, 027 – Agent Number).
The regulator will also update agent list on a periodic basis and make such information available to the public.
Above represents an operation, reputational and legal risk for the provider.
Crime syndicates have made billions scamming victims in Asia and are now expanding their operations to Africa, Europe, South America and further, according to a United Nations report on Monday.
The UN said Chinese and Southeast Asian gangs were targeting victims through investment, cryptocurrency, romance and other scams.
According to the United Nations Office on Drugs and Crime (UNODC), cyberscams are now a sophisticated global industry, featuring sprawling compounds housing tens of thousands of mostly trafficked workers who are forced to con other people online.
“It spreads like a cancer,” said Benedikt Hofmann, UNODC Acting Regional Representative for Southeast Asia and the Pacific said. “Authorities treat it in one area, but the roots never disappear; they simply migrate.”
While the activity had largely been focused on the border areas in Myanmar, a country torn by civil war, and dubious “special economic zones” set up in Cambodia and Laos, UNODC reported networks are expanding their operations to South America, Africa, the Middle East, Europe and some Pacific islands.
“This reflects both a natural expansion as the industry grows and seeks new ways and places to do business, but also a hedging against future risks should disruption continue and intensify in Southeast Asia,” Hofmann added.
Countries in east and southeast Asia lost an estimated $37 billion (€32.5 billion) to cyber fraud in 2023, while the United States reported more than $5.6 billion (€4.9 billion) in losses the UNODC report said.
There were also raids in Cambodia, but they prompted the crime syndicates to move to “more remote locations” and border areas.
Cambodian government spokesman Pen Bona said the country is among the victims of the cyberfraud industry and is committed to fighting it.
According to Bona, the government has established an ad-hoc commission chaired by Prime Minister Hun Manet which seeks to boost law enforcement and legal tools while working with international partners and the UN.
UNODC urged the international community to act, saying it was at a “critical inflection point.”
According to the UN, staying aside would have “unprecedented consequences for Southeast Asia that reverberate globally.”
Consumer Advocacy and Empowerment Foundation (CADEF) a leading not for profit organisation in consumer rights and advocacy in Nigeria has announced a high-level Distributed Energy Resources (DER) Stakeholders’ Workshop scheduled to hold on Thursday, April 24, 2025, at The Providence Hotel, Ikeja GRA, Lagos.
Themed “Overcoming Barriers to a Sustainable Energy Transition”, the workshop aims to provide a platform for robust dialogue and action among policymakers, energy sector experts, investors, development partners, and clean energy advocates.
The Federal Government of Nigeria had in May 2015 approved the National Renewable Energy and Energy Efficiency Policy (NREEEP) as well as the National Determined Contribution (NDC), 2015, which seeks to increase the share of on-grid renewable energy in the total electricity supply from 1.3% in 2015 to 30% in 2030.
As Nigeria pursues its Vision 30:30:30 to generate 30,000MW of electricity by the year 2030, with 30% from renewable energy, CADEF with other experts in the sector will through the stakeholders workshop provide practical and scalable DER solutions, with sessions addressing access to Solar Financing and Investment Opportunities, DER integration strategies and grid resilience, policy and regulatory developments, emerging technologies and case studies.
Speaking ahead of the event, Prof. Chiso Ndukwe-Okafor, Executive Director of Consumer Advocacy and Empowerment Foundation (CADEF), stated: “This workshop is not just about dialogue, it’s about driving action. Distributed energy resources hold the key to unlocking sustainable and inclusive energy access, especially for underserved communities. Through this engagement, we aim to foster cross-sector collaboration and equip stakeholders with the tools and insights needed to scale solutions that work.”
Participants will gain first-hand insights from trailblazers in the clean energy space, while shaping policy and investment discourse on Nigeria’s energy transition. With a rapidly growing demand for reliable electricity, DER technologies such as solar mini-grids, battery storage, and hybrid systems are increasingly vital for Nigeria’s energy mix.
Lovelyn Okafor, CADEF’s Director of Programmes, emphasized the significance of the workshop: “The time is ripe to leverage distributed energy innovations to build a resilient and inclusive energy future. We are bringing together voices that matter, from grassroots change-makers to top-tier investors and government officials to spark lasting transformation.”
Consumer Advocacy and Empowerment Foundation has been at the fore, driving change in the renewable energy sector through some key innovative interventions such as the unveiling of the Distributed Energy Resources (DER) one-stop shop at der.cadefng.org in 2024, a digital platform created to revolutionize how stakeholders and businesses across the DER ecosystem perceive, access and manage energy solutions.
CADEF also announced the launch of the greenlabs programme in collaboration with Jacob’s Ladder Africa, an initiative designed to inspire, equip, and empower young Nigerians to create sustainable, climate-smart solutions that address critical environmental and socio-economic challenges.
Sessions during the workshop will include a live demonstration of the newly launched DER platform (Renew Energy Naija) at DER.CADEFNG.ORG, panel discussions on financing and incentives, public-private partnerships and international collaborations.
CADEF believes that by strengthening multi-stakeholder collaboration, Nigeria can unlock the full potential of decentralized renewable energy, boost energy access, and empower millions of underserved households and businesses.
The workshop is strictly by confirmed registration and part of CADEF’s broader commitment to advancing energy equity and sustainability through advocacy, innovation, and capacity building.
For inquiries or partnership opportunities, please contact: info@cadefng.org | +234 (0) 7088873723
Securities and Exchange Commission (SEC) has issued a stern warning to social media influencers, bloggers, and celebrities, urging them to desist from promoting unregistered and fraudulent investment schemes. The warning was issued by the SEC’s Director-General, Dr Emomotimi Agama, in a notice released on Sunday in Abuja.
Dr Agama noted that the Commission is working in close collaboration with the Economic and Financial Crimes Commission (EFCC), the Nigeria Police Force, and other relevant government agencies to identify and prosecute those found guilty of flouting investment regulations.
Highlighting the provisions of the newly enacted Investments and Securities Act (ISA) 2025, Dr Agama said the law specifically targets the promoters of unregistered investment schemes, including individuals who use their platforms to endorse such ventures.
“The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment,” he stated.
Citing the recent collapse of CBEX—a digital investment platform accused of defrauding Nigerians of over ₦1.3 trillion—Agama described the incident as a stark reminder of the dangers posed by unregulated financial platforms. CBEX allegedly promised unrealistic returns and falsely claimed international partnerships.
“The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law,” he added.
Agama reiterated the Commission’s resolve to protect investors and develop Nigeria’s capital market. He urged Nigerians to verify any investment opportunity with the SEC before committing their money, advising: “If it sounds too good to be true, it probably is.”
He also reassured the public of the SEC’s capability to detect and shut down Ponzi schemes, stating, “We have dealt with similar schemes in the past and will continue to do so, leveraging the powers of the ISA 2025 to safeguard investors.”
In a bid to strengthen regulatory oversight, the SEC has established dedicated departments tasked with monitoring market activities and conducting inspections aimed at detecting irregularities early.
“These proactive measures are designed to prevent large-scale frauds like CBEX from recurring,” Dr Agama said.
He concluded by emphasising the significance of the ISA 2025 as a critical tool in securing the Nigerian investment landscape and building a resilient and transparent financial market.
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