The Central Bank of Nigeria (CBN) has given the 16 Mobile Money licensees till next month to demonstrate their competence or lose their temporary licence.

“We have given them four months to demonstrate their competence to roll-out mobile money services before we give them the final licence”, CBN, said at the official launching of Freedom Network in Lagos on Thursday.

Mobile Money is the  person-to-person payment through the mobile phone or the use of mobile phones to conduct financial transactions. It is the latest electronic banking innovation and a revolution changing the lives of millions across the globe.

The apex bank had issued  temporary licences or Approval-In-Principle (AIP) to 16 consortiums for mobile money services. Six of the consortiums are bank-led while the other 12 are led by non-bank firms.

The name of the lead banks or firms are: First Bank of Nigeria, UBA/Afripay, GTBank, MobileMoney, Stanbic IBTC, and  Ecobank. The others are  Fortis MFB,  Pagatech, Paycom, Chams, E-Tranzact, FET (Funds Electronic Transfer), Monitiz, Parkway,  Corporeti Services, Eartholeum, and  M-Kudi.

Vanguard investigation revealed that while granting the AIPs, the apex bank banned the licensees from embarking on any publicity campaign or making reference to mobile money as part of their services until they are given final operating licence.

A staff in one of   the firms who spoke on condition of anonymity told Vanguard that the apex bank recently issued a directive  to remind them of the ban on publicising mobile money services. The apex bank told them that during the four-month period before the final licence, the consortium must operate as a pilot scheme to test- run the capabilities to roll-out mobile money services.

The position of the apex bank, it was gathered, is to ensure that mobile money services, though a new phenomenon in Nigeria, takes off with minimal operation hiccups.

As preparatory to the effective operations of mobile money in Nigeria, the apex bank in 2009  issued  the regulatory framework for mobile payment systems in Nigeria.

“Mobile Payment System in Nigeria refers to the various components required to deliver mobile payment to the banking and non-banking community. The providers of these services and solutions shall be required to operate within the defined regulatory framework specified in this document.

The overriding vision is to achieve a nationally utilised and internationally recognised payment systems”, the CBN said.

It stated that “this regulatory framework is developed to conform to international best practices and standards. It is also a product of vigorous engagement and consultations with stakeholders.

After identifying person-to- person payments (over the mobile phone infrastructure) as a practical strategy for financial inclusion of the un-banked, the Central Bank of Nigeria opted for the creation of an enabling regulatory environment as a policy path towards achieving availability, acceptance and usage of mobile payment services in Nigeria.”

Mobile Payment System in Nigeria refers to the various components required to deliver mobile payment to the banking and non-banking community. The providers of these services and solutions shall be required to operate within the defined regulatory framework specified in this document.”