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

Tigo Cash first in line to accept e-Goverment payments through Irembo

Tigo Rwanda has announced its partnership with Rwanda Online Platform Ltd (ROPL) for e-Government service payments via the Irembo,gov.rw e-government portal. Read More

SIM deactivation: NCC to sanction telcos over non-compliance

The Nigeria Communications Commission (NCC), says it will impose sanctions on Nigeria carriers over partial and non-compliance with its directive to deactivate all SIMs that do not conform to laid down procedures. Read More

Expert wants MDAs to embrace e-revenue collection

An electronic payment expert,  Deremi Atanda, has urged Federal Government ministries, departments and agencies (MDAs) to embrace the use of technology, especially the electronic or e-payment platform to collect revenue. Read More

SADC lends weight to STI

The Southern African Development Community (SADC) has put its weight behind the regional initiatives to boost Science, Technology and Innovation (STI).  Read More

NCA to auction Infrastructure License

Ghana’s National Communication Authority will soon be auctioning its Infrastructure License to the public. Read More

Telcos get 7-day SIM ultimatum

The Nigerian Communications Commission has handed down a seven-day ultimatum to network providers to deactivate all pre-registered SIM cards or face sanctions. Read More

Prof Danbatta named NCC chief

President Muhammadu Buhari has appointed Prof Umar Garba Danbatta as the new Executive Vice Chairman/Chief Executive Officer of the NCC. Read More

CEO of BOCRA to open SAPOA AGM

Thari Pheko, The Botswana Communications and Regulatory Authority (BOCRA) Chief Executive Officer will be the guest of honour at the 14th southern Africa Postal Operators Association annual general meeting. Read More

Prof Quaynor calls for greater partnerships within Ghana’s ICT sector

The Board Chairman of Ghana’s National Information Technology Agency (NITA) Professor Nii Narku Quaynor, has called for a much greater collaboration and partnership within the country’s Information and Communication Technology sector. Read More

August is Science, Technology and Innovation Month

Botswana’s Minister of Infrastructure, Science and Technology (MIST), Hon. Nonofo Molefhi will officially launch the Science, Technology and Innovation (STI) month on Tuesday.   Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Young innovators shine during pitch sessionsYoung innovators shine during pitch sessions

Botswana saw an array of upcoming tech wizards selling their ideas during the Vendors’ Day pitch sessions this week.

IN DEPTH

High tech homes: Just press playHigh tech homes: Just press play

High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.