In accordance with its mandate to promote a sound financial system in Nigeria, and establishment of an efficient and effective trading arrangement including electronic payment systems, the Central Bank of Nigeria (CBN) has released Regulatory Guidelines and Framework for Mobile Money Services in the country.
These guidelines have defined two models for implementing mobile money services: bank-led (bank and/or its consortium as lead initiator) and non-bank-led (a corporate entity legally regulated by the CBN as lead initiator).
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.
The Bank-led model is a model in which a bank, either alone or as part of a consortium of banks, aims to supply financial services through the mobile payments system.
This model can be used in situations where the bank operates independently or in partnership with other banks and other permitted organizations. A bank or a group of banks will serve as the Lead Initiator.
The non-bank bank led approach permits a corporate entity that has been properly licensed by the CBN to provide mobile money services to users.
In the guidelines, mobile money operators are prohibited from granting any type of loan, advance or guarantee either directly or indirectly, or acceptance of foreign currency deposits.
