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Towards Cashless Societies: Mobile Money Leading the Way in West Africa
Lauded as one of the 21st century’s most transformative financial tools, mobile money has significantly inspired financial inclusion by providing previously unbanked and underbanked populations the access to essential financial services.
This innovation empowers individuals and businesses with the tools to send and receive remittances, make seamless payments for goods and services and save money, while ultimately contributing to faster economic growth and development across the region.
Research from GSMA’s The State of the Industry Report on Mobile Money 2024 reveals that over the past decade, increased adoption of mobile money services has significantly improved GDP. This has contributed an impressive USD 600 billion to the economies of countries utilising these platforms. This finding reaffirms the transformative economic potential of mobile money as it drives entrepreneurship, increases consumer spending and enhances overall economic activity.
The popularity of mobile money in East Africa has not only redefined the scope of financial inclusion but has also spurred significant economic growth and altered consumer behaviour within and outside the region. Specifically, the success of platforms like M-Pesa has provided a powerful blueprint, easily demonstrating how mobile money can democratise access to financial services and drive socio-economic development.
This SeerBit whitepaper casts a deep look at mobile money’s regional adoption trends, its economic contributions and the challenges of scalability, while advocating for urgent, collective action to unlock mobile money’s benefits, paving the way for a more connected and prosperous future in the region.
Rise of Mobile Money Adoption Across West Africa
The Macroeconomic Performance and Outlook (MEO) report developed by the African Development Bank Group notes that Africa will account for 11 of the world’s 20 fastest-growing economies in 2024 – with the continent set to remain the second-fastest-growing region after Asia.
Mobile money adoption is playing a significant role in this growth.
In the 10 years leading up to 2022, mobile money contributed USD 600 billion to the GDP of countries with a mobile money service, according to the GSMA’s The State of the Industry Report on Mobile Money 2024 (SOTIR 2024).
Spotlighting West Africa in particular, which currently has a population of over 451 million (United Nations), West African Economic and Monetary Union (WAEMU) countries have seen increased financial account ownership since 2014, with mobile money accounts witnessing increased adoption and usage. On average, 41 percent of adults in the WAEMU have an account with a bank or similar institution or with a mobile money service. Senegal has the highest account ownership rate at 56 percent, but the country still falls 15 percent below the developing economy average.
In Nigeria, where a majority of adults remain unbanked or underserved due to the limitations of traditional banking infrastructure, the country’s dynamic fintech sector is bridging those gaps with mobile money, digital payment platforms and wallets to reach underserved populations in rural and remote areas. While digital transactions have grown, they are yet to exceed cash-based transactions. A recent GSMA report reveals that Nigeria’s mobile money account ownership increased to 22 percent among all adults that are aware of mobile money and have used a mobile phone in 2022 and the number of adult account owners who have used mobile money in Nigeria in the last 30 days increased to 80 percent – this was up from 61 percent in 2021.
Global Findex data suggests there are opportunities to accelerate ownership and usage through digital financial enablement.
What You Should Know About Mobile Money in West Africa
Here are some interesting things to note about the adoption and effectiveness of mobile money in West Africa.
Mobile money is bridging the financial inclusion gap in West Africa
If there is one thing industry critics can agree on, it is that mobile money services continue to play a critical role in financial inclusion across the continent, providing a secure and convenient platform for transactions, bill payments and access to banking services, highlighting the demand for accessible financial services where traditional banking infrastructure is minimal and as such unable to address the needs of the populace.
Mobile money has had a gender-equalising effect in most countries, except for Côte d’Ivoire, which has a 13 percent gap due to males having adopted mobile-based accounts at a higher rate.
Mobile money has also enabled more women to save money than other financial services. For instance, in Senegal, only six percent of women saved using a traditional bank or other financial accounts in 2021, whereas four times more women chose mobile money to save.
Enabling regulation has led to greater access to and use of mobile money
As an important solution in the provision of basic transactional financial services to populations largely underserved by formal financial institutions, mobile money services are subject to a range of regulations.
It has generally been accepted by regulators, mobile money providers and investors that regulation has a material impact on mobile money adoption and usage. Regulation affects the ease with which new customers can enrol to a mobile money service and the range of services offered, as well as the commercial and operating environment for providers and investors.
Fintechs are instrumental to making mobile money a success in West Africa
Fintech companies in Nigeria are collaborating with traditional banks to tailor services to the evolving needs of Nigerian consumers and businesses. These offerings pair a range of traditional banking products such as savings accounts and bill payments with innovative tech solutions such as lending platforms, virtual investment advisors, digital insurance products, and digital remittance solutions.
Fintech platforms such as SeerBit offer more widely accessible financial products that can help close the unmet credit demands of micro, small and medium-sized businesses in the country. A 2022 IFC Nigerian SME Finance Market report estimates this is around 13 trillion Nigerian naira (equivalent to USD 9 billion today). These products include invoice financing services, supply chain finance solutions, inventory management systems, data analytics tools, digital capital investment, digital assets, neo-banking and digital accounting and bookkeeping tools tailored to their needs.
West Africa Making a Bold Statement With Mobile Money
Despite several infrastructural, economic, social and regulatory challenges in West Africa, countries in the region are making meaningful strides to address all these areas. This is evidenced by countries in the region leading the mobile money adoption race globally. In 2023, over a third of new registered and active 30-day accounts globally were from West Africa and these accounted for transaction volumes of 19 billion, an increase of 40 percent from the previous year and transaction values of USD 347 billion, also up 40 percent from the previous year.
Mobile money adoption in West Africa is booming, with the GSMA reporting over 500 million active mobile money accounts in the region by 2023. The World Bank highlights that mobile money transactions are growing rapidly, driven by increased smartphone penetration and financial inclusion efforts. Despite this progress, challenges persist, including regulatory hurdles and infrastructure limitations. According to the GSMA, over 40 percent of the region’s population remains unbanked, which hampers broader adoption. Additionally, cybersecurity threats and digital literacy gaps could inhibit future growth. Addressing these challenges will be crucial for sustaining the upward trajectory of mobile money in West Africa.
Towards Cashless Societies
In January 2024, Bloomberg reported that six of the top 10 performing economies in the world were predicted to come from Sub-Saharan Africa. The continent’s youthful population is also an enormous opportunity for economic growth.
Africa also has the advantage of having fewer legacy challenges to deal with and is, therefore, adopting digitised solutions faster out of necessity.
Today’s technologies are a good indicator of the scale and speed at which technology is transforming traditional socioeconomic sectors across the continent. African countries are implementing key policies to accelerate digital payments adoption, creating a competitive market with solutions tailored to the underserved.
How Can Africa Further Accelerate the Growth and Adoption of Mobile Money?
Connectivity is critical.
Widespread internet access would enable card-based transactions at merchant/agent locations. Offline solutions and strong interoperability policies are crucial for addressing connectivity challenges.
What’s the Future Outlook on Mobile Money Adoption?
In two words: Quite positive.
Beyond improving financial inclusion and access to other digitally enabled services, the adoption, use and growth of mobile money are now reflected in macroeconomic indicators – an increase in mobile money adoption will inevitably lead to a rise in GDP.
The emergence of mobile money as an alternative cashless currency has fundamentally changed the way people access financial services, enabling millions of unbanked individuals to store and manage money through their mobile devices.
However, despite this progress, a significant portion of Africa’s population remains outside the traditional banking system, facing limited and costly banking services.
Ease in regulation has played a key role in driving mobile money adoption in West Africa. As mobile money continues to gain traction, it is crucial that the regulatory frameworks in many West African nations evolve to meet dynamic needs. Effective regulations are essential to protect consumers while encouraging new entrants and consistent innovation in the market.
By establishing a robust regulatory environment, African countries will ensure that mobile money remains a powerful tool for economic empowerment and financial inclusion, ultimately driving sustainable development across each region.
Download the full report for free here.
9mobile, telecommunications operator, has described as untrue the rumors suggesting that it has shut down its operations.
according to the telcos, these claims are entirely baseless and aimed at causing unnecessary panic among our valued subscribers, the mobile operator said in a statement.
“We understand that some customers have recently faced challenges, particularly with Mobile Number Portability (MNP), a service that enables seamless network switching.
“We want to clarify that 9mobile has never restricted customers from porting to other networks. We remain fully compliant with industry regulations and committed to delivering fair, transparent, and customer-focused services.
“While there have been temporary technical challenges affecting MNP, these issues have now been largely resolved. Some minor delays may still occur due to ongoing system optimizations, but we are actively working to ensure a smoother experience for all users.
“As a proudly Nigerian brand, we embody the resilient spirit of our people and remain steadfast in our commitment to overcoming challenges. We acknowledge the temporary service disruptions some customers may have experienced in different locations.
“However, we assure you that these disruptions are part of a broader transformation effort aimed at modernizing our infrastructure and improving overall service quality.
“Our ongoing investments in network upgrades and service expansion will soon yield significant improvements, ensuring reliable connectivity for individuals, businesses, and communities.
“We sincerely appreciate the patience and loyalty of our subscribers during this transition. While challenges exist, we are making significant progress and are confident that brighter days are ahead. We remain dedicated to providing exceptional service and keeping you connected to limitless opportunities”.
Nigeria Data Protection Commission (NDPC) has initiated an investigation into the data processing practices of Tiktok and Truecaller, following growing concerns about potential privacy violations.
Dr. Vincent Olatunji, the Chief Executive Officer of the NDPC, made the announcement today during a press conference in Abuja, where he also revealed the issuance of the Nigeria Data Protection Act – General Application and implementation directive (NDPC Act – GAID), 2025.
Dr Olatunji stated that the commission’s primary concern is how these platforms manage Nigerian users’ personal data, including potential breaches of consent, data sharing with third parties, and overall compliance with the Nigeria Data Protection Act (NDPA), 2023. He confirmed that the NDPC is actively investigating Tiktok and Truecaller’s data processing activities to ensure they comply with Nigeria’s data protection laws.
“The goal is to safeguard the privacy rights of Nigerians and hold organizations accountable for how they collect, store, and use personal data,” he added.
This investigation comes amid increasing scrutiny of global tech companies regarding data privacy, especially concerning how personal information is processed, stored, and transmitted beyond national borders.
The NDPC act – GAID, 2025, issued today, provides a detailed framework for implementing Nigeria’s data protection law, outlining compliance guidelines, enforcement mechanisms, and obligations for both public and private organizations.
Dr Olatunji emphasized that the directive aims to strengthen Nigeria’s digital economy by fostering trust in data governance while ensuring individuals’ rights to privacy are respected in accordance with international best practices.
He reiterated that companies operating in Nigeria must comply with the country’s data protection regulations or face regulatory actions, including fines and potential restrictions.
The NDPC has urged the public to report any data privacy violations and reaffirmed its commitment to transparency and due process in its investigations.
The commission noted that reporting data breaches has become more accessible through dedicated channels on its official website.
In a resounding commitment to bridging gender digital divide, the National Information Technology Development Agency (NITDA), in collaboration with the Federal Ministry of Women Affairs (FMWA), has taken a decisive step toward closing the gender digital divide by presenting the National Gender Digital Inclusion Strategy (NGDIS) at the United Nations 69th Session of the Commission on the Status of Women (CSW69). Themed “Digital Harmony: Advancing Gender Inclusion by Empowering Women and Children for a Secure Digital Future,” the high-level event reinforced Nigeria’s commitment to fostering equitable access to digital technology, online safety, and economic empowerment for women and children.
L-R: Esther Eghobamien-Mshelis – President of UN CEDAW, Iklima Musa – Special Assistant to the Director General of NITDA, Noimot Salako – Deputy Governor Ogun state, Maryam Ciroma – former minster of women affairs, Imaan Sulaiman- Minister of Women Affairs, Josephine Anenih – former Minister of women affairs and Dr Maryam Keshinro – Permanent Secretary – Ministry of Women Affairs at the United Nations 69th Session.
Speaking at the event, Iklima Musa Salihu, Special Assistant to the Director General on Strategic Partnerships, presented the strategy, emphasizing NITDA’s role in driving digital transformation and creating opportunities for women and girls to actively participate in the digital economy.
The NGDIS, developed in alignment with Nigeria’s Renewed Hope Agenda and Sustainable Development Goals (SDGs) 5 and 8, seeks to remove barriers to digital inclusion by expanding access to digital skills training, infrastructure, and mentorship opportunities for women and girls.
Kashifu Inuwa Abdullahi, Director General of NITDA as represented by the SA, in his special remarks reaffirmed the Agency’s commitment to ensuring that Nigeria’s digital transformation is inclusive and equitable, highlighting NGDIS as a game-changer in achieving gender parity in the digital space.
He noted that the framework prioritizes digital literacy, entrepreneurship, safety, and gender-responsive policies to accelerate women’s participation in Nigeria’s growing digital economy.
The NGDIS is built on five core pillars that will drive women’s access, participation, and leadership in the digital ecosystem. It seeks to expand digital literacy and skills by ensuring at least 40% female participation in all national training initiatives.
Recognizing the role of women in Nigeria’s innovation and entrepreneurship landscape, the strategy emphasizes access to funding, mentorship, and technical assistance for female-led startups, leveraging the Nigeria Startup Act to increase financial and institutional support for women in the tech ecosystem. With 58% of young women globally experiencing online harassment, the NGDIS prioritizes online safety and cybersecurity awareness.
Speaking at the event, Minister of Women Affairs, Honourable Imaan Sulaiman, FSI, underscored the urgent need for action in tackling gender disparities in digital access.
She revealed alarming statistics that demonstrate the stark reality of the digital divide in Nigeria, highlighting that 68% of Nigerian women do not own smartphones, making it difficult for them to access online services and economic opportunities.
She stressed that this divide extends beyond access, as women and children face significant online risks, including cyber harassment, digital gender-based violence, and exclusion from the rapidly growing tech-driven economy.
She called for the swift implementation of the National Gender Digital Inclusion Strategy (NGDIS) 2024-2027, which seeks to remove the structural barriers that prevent women from fully engaging in the digital economy.
She emphasized the need for strong legal frameworks that would accelerate action in promoting digital literacy, providing safe online spaces, and empowering women to thrive in technology-driven industries.
She reaffirmed that President Bola Ahmed Tinubu’s Renewed Hope Agenda is committed to creating an inclusive digital future where no woman or child is left behind.
She urged all stakeholders to work together to transform digital access and security for women and children, making technology a tool for empowerment rather than exclusion.
As the world embraces the Fourth Industrial Revolution, NITDA in collaboration with stakeholders is taking bold and strategic steps to ensure that women and girls are not only participants but also leaders in the digital transformation journey.
The National Gender Digital Inclusion Strategy is a blueprint for action, providing a clear framework for accelerating digital inclusion, fostering entrepreneurship, and strengthening online safety for Nigerian women and children.
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