Mobile Phones to Ring Naira from June

Nigeria is at the threshold of Mobile Money Transfer and Payment (MMTP), a new revolution that is potentially more profound than the arrival of mobile phones in the country but this time sweeping and exponential, Nigeria CommunicationsWeek can now reveal.
Hailed as the next big thing, mobile payment industry will change the way consumers interact with financial services and make payments and the major plank will be the mobile phone.
With only 22 million bank accounts and less than10, 000 bank branches for 140 million citizens, mobile payments will reach over 80 million mobile phone holders and millions of others that do not have access to formal financial services in urban and rural areas.
Emmanuel Okoegwale, chief executive officer of Africa Center for Mobile Financial Inclusion (ACMFI) said that “mobile payment revolution that is currently sweeping across the African continent will berth in Nigeria in coming months if not weeks”
ACMFI is at the fore front of pioneering mobile financial inclusion in Nigeria and Africa and seeing the challenges ahead for potential players
According to Okoegwale, mobile financial services will include consumer accounts information, updates, alerts, bill payments, person to person transactions and remittances.
Central Bank of Nigeria (CBN) is expected in June this year to start issuing more mobile payment licenses to operators which are expected to leverage on the ubiquity of the mobile phone and the interoperability of the technology to provide easy to use and secure mechanism for millions of people nationwide.
MoneyBoxAfrica, a mobile saving and payment platform became the first M–payment licencee in the country in 2009 but is yet to activate the licence.
Nigeria CommunicationsWeek recalled that Mr. Abayomi Atoloye, acting director of Banking Operation at the apex bank had in January, said that the CBN has set up a payment policy and oversight office which is to recommend operators that would be granted licenses to handle all issues concerning mobile payment system.
Already queuing for the licenses are Eartholuem Networks promoted by Bola Adeyinka and Peter Afam Emeleogu and Mobile Media Info Tech limited (MMIT) led by Jide Akindele.
Others are Mtech Communications, leading mobile Value Added Services (VAS) company listed on the Nigerian Stock Exchange (NSE); Ingres Quality Rollout, a Telecom/IT consulting firm which specializes in Telecom/IT service delivery and infrastructure development led by Chidiebere Anosike; Pagatech piloted by team of Jay Alabraba, Tayo Oviosu, Aisha Bello and Phillip Uwamurogie and Celltrust which is based in Abuja and has Samuel Ucheagha overseeing its operations.
Others in the race for partnerships but not seeking licenses of their own are M-Naira promoted byJohn Enoh and MyPesa led by Femi Alla.
Nigeria CommunicationsWeek could not ascertain what the likes of Tagattitude led by Femi Akinware, UBA Bank and GTB are up to as at the time of going to press.
What is however clear is that each licensee must meet CBN conditions including having minimum paid up capital of N500 million.
It is also clear that some potentials players will be granted provisional approval in June to commence pilot projects to enable the CBN evaluate the workability of the system using global acceptable standards.
Okoegwale said that there is really huge market for mobile payment if operators can get it right.
“In Nigeria where electricity and transportation are unreliable, the mobile phone is a driving force for change – and not just for voice calls. Mobile phones can address one of the biggest cost barriers in the value chain” he added
The success of M-pesa in Kenya (over 2 million users) has demonstrated the strong compelling need for a platform that can empower Africans to make transaction cashless and without need to visit a bank.