CBN Issues Regulatory Framework and Guidelines on Mobile Money Services in Nigeria
In its quest to build a robust payments system and promote economic efficiency, the Central Bank of Nigeria has issued the regulatory framework and guidelines for mobile money services in Nigeria.
The regulatory framework and guidelines addresses business rules governing the operation of mobile money services, and specifies basic functionalities expected of any mobile money service and solution in Nigeria. It identifies the participants and defines their expected roles and responsibilities in providing mobile money services in the system.
In addition, it sets the basis for the regulation of services offered at different levels and by the participants. The overriding vision of achieving a nationally utilized and internationally recognized
payments system necessitates strategies to bring informal payment transactions into the formal system.
In the framework, the CBN identified two models for the implementation of mobile money services namely; the Bank Led – Bank and/or its Consortium as Lead Initiator and the Non-bank Led- A corporate organisation duly licensed by the CBN as Lead Initiator.
While recognizing the importance of Mobile Network Operators (MNOs) in the operations of mobile money services and appreciates the criticality of the infrastructure they provide, the telco-led model (where the lead initiator is an MNO), is not recognized and will not be operational in Nigeria.
According to the framework, the exclusion of the telcos will enable the CBN have full control of monetary policy operations,
minimize risks and ensure that the offerings of financial services are driven by organizations that have been licensed by the CBN to do so.
Participants are grouped into six (6) categories: Regulators, Mobile Money Operators, Infrastructure providers, Other Service Providers, Consumers and Mobile Money Agents.
It recognizes Pull-based and Pull-based account transactions, Credit, Debit, and Pre-Paid Card Driven Payments, Stored Value Account Based and Mobile Money Savings Wallets in Nigeria
Mobile Money Operators may offer savings wallet services to meet the demands of the unbanked in Nigeria, the modalities for the operation of savings wallets in Nigeria is as detailed in the Guidelines.
The Guidelines for the Operation of Mobile Money Services
The guidelines on the other hand addresses the permissible and non permissible activities for mobile money operators, the business rules, the roles of the different stakeholders in the system, the rules and modalities for the operation of the various account and card types, standards, business continuity, risk management and sanctions for violations of the guidelines.
Download the regulatory framework and guidelines on Mobile Money Services in Nigeria HERE
