Why CBN denied Nigeria telcos mobile money licenses

GOVERNMENT

|
Image: L-R: Tunde Kuponiyi, Globacom, Lolo Emorpkae, NCC and George Samsa, CBN at the Telecoms Consumer Parliament. By Lukas Ajanaku
L-R: Tunde Kuponiyi, Globacom, Lolo Emorpkae, NCC and George Samsa, CBN at the Telecoms Consumer Parliament

By Lukas Ajanaku, Lagos, Nigeria

Despite knowing their about 100 million subscribers, Nigeria's financial sector regulator, the Central Bank of Nigeria (CBN) has said it refused to license mobile phone operators to operate mobile money services in the country.

The CBN which spoke to Biztechafrica on the sidelines of the 66th edition of Telecoms Consumer Parliament (TCP) convened on Friday at the Excellence Hotel, Ogba, Ikeja, Lagos, explained that granting telecommunication service providers license to offer the service might compromise service quality in the country.

MTN, Etisalat, Airtel and Globacom are the gladiators in the global system for mobile (GSM) communication in the country, Visafone, Starcomms, ZomMobile and a few others operate in the sick code division multiple access (CDMA) section of the telecoms industry in the country.

George Sansa, a representative of the apex bank at the event, said when the issue of granting licenses for mobile money came up, it was debated thoroughly and it was agreed that mobile operators should not be burdened unnecessarily with offering mobile money services.

The issue of depreciating telecoms services has remained a daunting challenge to operators and regulators in the country with subscribers usually left to lick their wounds.

Sansa explained that in view of the challenges facing the operators, the CBN restricted their role in the scheme to providing only the traffic for the exercise.

“The CBN went through a rigorous process in rolling out the guidelines which are of international standard for the scheme.”

“The operators are supposed to be carriers. In order to avoid a clash, telecoms operators were exempted from the grant of operational licenses. We want to avoid a clash on interest,” Sansa said.

On security of the payment system in view of the massive fraud that greeted the introduction of automated teller machines (ATMs) in the country a couple of years ago, the CBN official said the apex bank has constituted an e-fraud forum which will not only collate electronic fraud cases in the country but investigate the modus operandi of such crime and suggest ways of nipping it in the bud.

On power failure factor which may likely scuttle the success of the scheme, he said there were dedicated lines for e-payment connectivity in the country, arguing that with the relentless investment of the federal government in the power sector, there appears a light at the end of the tunnel soon.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE GOVERNMENT NEWS

Fake NIN enrolment agents on prowl, warns NIMC

Nigeria’s National Identity Management Commission (NIMC) has raised the alarm over reports making the rounds that eligible applicants must pay certain sums of money before they could enroll for the National Identification Number (NIN). Read More

ICT-enabled census to make a difference in DRC

MONUSCO/Myriam Asmani, Wikimedia DRC’s first census in 30 years will be supported by ICTs to ensure a fast and faultless process. Read More

NCS tasks govt on R&D funding

The Nigeria Computer Society has urged the Federal Government to increase funding of R&D. Read More

Policy Interventions can eliminate operational barriers - Mascom

Mascom Marketing and Public Relations Executive Tebogo Lebotse-Sebego says the creation of an enabling legislature and policy interventions can help Botswana overcome its ICT obstacles. Read More

DRC Police to launch digital call centre

In October this year, the government of the Democratic Republic of Congo (DRC) will launch a digital call centre equipped with computers, fast internet and other latest technology tools to enable the police to respond timely and effectively to any kind of distress calls by the people. Read More

Angola Online free internet project launched in Luanda

Angola’s Ministry of Telecommunications and Information Technologies, in partnership with the National Center for Information Technology, has officially launched the digital project "Angola Online", which aims to roll out internet access to five million Angolans by 2017. Read More

NIG President speaks his mind

Bayo Banjo, CEO, Disc Communications and President, Nigeria Internet Group (NIG) says the proposed licensing of infrastructure companies by the Nigeria Communications Commission (NCC) will breed corruption and entrench monopolistic practices. Kokumo Goodie reports. Read More

Non-passage of cyber security bills ‘cripples mobile money’

The refusal of the National Assembly to pass into law the cyber security bills pending before it has been blamed for the low uptake of mobile money scheme introduced by the Central Bank of Nigeria (CBN). Read More

Technology Department launches Indicators Report

Botswana’s Department of Research, Science and Technology has undertaken a survey to establish National Research and Experimental Development (R&D) indicators for the year 2012 – 2013. Read More

Conference highlights SADC ICT concerns

Bridget Linzie The 5th ICT conference to be hosted by Botswana's Ministry of Transport and Communication has seen delegates decry lack of broadband utilisation in all SADC countries.  Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionSage HR AfricaMTN BusinessSchneider ElectricMultichoice

FEATURED STORY

MFarmer SMS redefines market access for Ugandan farmersMFarmer SMS redefines market access for Ugandan farmers

Ugandan smallholder farmers are benefitting from an ambitious innovative ICT mobile phone initiative that offers weather reports and up-to-date market information about changes in prices for agricultural commodities, thus granting them lucrative returns from their farming ventures. 

IN DEPTH

NIG President speaks his mindNIG President speaks his mind

Bayo Banjo, CEO, Disc Communications and President, Nigeria Internet Group (NIG) says the proposed licensing of infrastructure companies by the Nigeria Communications Commission (NCC) will breed corruption and entrench monopolistic practices. Kokumo Goodie reports.

COMPANY NEWS

VMware announces general availability of new solutions for building, managing and protecting softwar

VMware has announced the general availability of VMware NSX 6.1, VMware vCenter Site Recovery Manager 5.8, VMware vCloud Suite 5.8, VMware vRealize Operations Insight, VMware vRealize Suite ...