By Prince Osuagwu

Head of Personal and Business Banking division at the Stanbic IBTC Bank, Mr Obinna Abajue, last week, said that the adoption of mobile money in Nigeria would help the Central Bank of Nigeria, CBN understand the country’s true Gross Domestic Product (GDP).

This is even as he tipped the adoption of the platform to also aid improved national planning by government, entrench financial inclusion, as well as enhanced economic activities.

Abajue at the Mobile Money Round Table organized by BusinessDay Conferences in Lagos, said these benefits were in addition to the widely known gain of reducing cost of cash handling and cost of funds, convenient and also strengthening secure payment method.

For him, mobile money will integrate Nigeria’s huge informal economy, which is driven by unbanked small scale farmers, traders, craftsmen and other types of small and medium sized businesses, into the formal economy. Lower transaction costs, convenience and the secure nature of the mobile money platform will strongly appeal to these segments of the society, according to him.

Speaking on the theme, “Opportunities in Nigeria’s Emerging Cashless Economy”, Abajue said, that “government and banks have been at the forefront of channelling the huge funds in the informal sector through the formal banking system to bolster economic development. Mobile money will fast track this harmonization; and also identify economically active people previously in the shadows in the huge informal cash economy, enabling them to have access to credit facilities.”

“Mobile money will bring about transparency, improved remittances and economic activities across various sectors of the economy, both in urban and rural areas. To achieve this, it is imperative for the regulators, licensed operators and other stakeholders to embark on an awareness campaign to educate Nigerians about the benefits of mobile money. This will drive its acceptance, thereby accruing huge benefits to the economy.” he added.