Is Nigeria The Next Big Mobile Payments Market?

Nigeria’s Association of Licensed Mobile Payment Operators (ALMPO) announced it will be working with the Central Bank of Nigeria to continue pushing mobile payments.

According to All Africa, both organizations will work together to create a new set of industry standards and a reliable framework. Ideally these initiatives will facilitate the further development of mobile financial services in Nigeria.

Dara Owolabi, chairman of the ALMPO’s association, stated, “We want to put the future of our mobile payments industry on a clear and firm footing and an independent body comprising of all license stakeholders is the logical first step.”

ALMPO was initially created with the mission to support licensed mobile payment operators in Nigeria and provide guidance to help the growth of the mobile payments industry.

Owolabi explained to All Africa that ALMPO planned to work with central bank members to establish effective payment policies. Furthermore, both associations will help to ensure that various stakeholders in the payments ecosystem are well informed and willing to cooperate.

Promoting the growth of mobile payments is part of the central bank’s vision to address the nation’s high percentage of unbanked consumers. At present, almost 75 percent of Nigerians are allocated into the unbanked category.

However, out of the 170 million people living in Nigeria, an impressive 100 million own a mobile phone. MPOs and the central bank have acknowledged that these statistics represent a prime opportunity to begin pushing mobile payments to consumers.

Other mobile payment schemes, such as M-Pesa, have achieved great success since its launch in Northern Africa a few years ago. Over 17 million people in Kenya are now using mobile payments to conduct everyday transactions. Nigeria is expected to experience similar success, as financial experts have predicted Nigeria to be the next big mobile payments market in Africa.

The central bank said that it is important to establish a framework in order to sustain a mobile payment program in Nigeria. Building strong standards from the bottom up will allow MPOs to get more consumers on board with financial services.

To read the full story at All Africa click here.