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Mobile money transfer in Nigeria

A $5 million annual growth is rather slow as the benefits of mobile money is yet to be utilised due to inadequate agents who are not able to facilitate faster growth.

Mr. Dipo Fatokun who is the Director, Banking and Payment Systems Department of the Central Bank of Nigeria, believes that telcos will soon realise the potential in serving as super agents for Mobile money in Nigeria. Two of such telcos have already signalled their interest to make their agents available to financial institutions.

In a bid to prompt the industry sector, the Central Bank of Nigeria has announced that it will consider withdrawing licenses from dormant mobile money operators – according to a report there are currently 21 of these dormant licensed operators.

Mr Fatokun acknowledges that the initial targets set for the sector may have been a little ambitious, hence, there is a failure to hit the estimated target. One of the factors slowing adoption is electronic fraud and the worries that come around it.

He emphasized the need for collaboration amongst major banks in the fight against electronic fraud. “As the world becomes interconnected, every organization must work together to secure the cyber space.”

Electronic fraud is not limited to Nigeria, but its developing global economy has seen an increase in the losses incurred due to fraud. In 2014 the amount lost to fraud was around N6.21 billion, up from 2013’s N485 million.

Nkiru Ojo of Stanbic IBTC, noted that globally about $445 billion is being lost by businesses annually to cybercrime.