CBN RELEASES REGULATORY FRAMEWORK FOR MOBILE MONEY SERVICES AIMING TO DRIVE FINANCIAL INCLUSION
In an effort to enhance financial inclusion, the Central Bank of Nigeria (CBN) has recently released Regulatory Guidelines and Framework for Mobile Money Services in the country. According to the CBN, the advent of mobile telephony in Nigeria, its fast development and acceptance, and the recognition of person-to-person payments as a viable approach for financial inclusion has made it critical to use the mobile channel to drive financial inclusion among the unbanked.
Financial inclusion continues to gain traction among policymakers, scholars, and development organisations all around the world. Its significance stems from the potential it presents as a vehicle for economic growth, notably in terms of poverty reduction, job creation, wealth creation, and increasing welfare and overall living standards.
Under Section 47(2) of the Act of 2007, the Central Bank of Nigeria (CBN) shall be empowered to foster and facilitate, in accordance with its mandate to promote a sound financial system in Nigeria, the establishment of an efficient and effective trading arrangements including electronic payment systems. CBN has therefore introduced the Mobile Money Services Guidelines in Nigeria in a bid to promote financial development.
This Guideline covers business regulations governing mobile money service operations and describes the required fundamental features of any mobile payment service and solution in Nigeria. It describes and defines the participants in the mobile money services system in their expected roles and duties. It also lays the groundwork for regulating services provided at various levels by participants.