Why we refused telcos mobile money licences – CBN

INDICATIONS  emerged last week on why the Central Bank of Nigeria denied telecommunication operators the license to operate mobile money services.

Representative of the apex bank, from the Shares department, Mr. George Sansa who disclosed this during an interview with newsmen at the 64th NCC consumer parliament held in Lagos argued that granting telecommunication service providers license to offer mobile money services might compromise their primary responsibility of providing quality service in the country.

Following this observation, Sansa said CBN chose to limit the role of the telcos to providing traffic for the exercise.

Rigorous process
“The CBN went through a rigorous process in rolling out the guidelines which are of international standard for the scheme. The operators are supposed to be carriers. In order to avoid a clash, telecoms operators were exempted from the grant of operational license. We wanted to avoid a clash of interests,” Sansa said.

On fraud control, Sansa said CBN had before the commencement of the policy, certain stringent guidelines of international standard were set up to strengthen the operation, adding that an e-fraud forum had also been constituted by the apex bank to oversee cases of fraud that maybe perpetrated in Nigeria and in other jurisdictions.

“We will use that to strengthen our system. As we move on, we will continue to learn and improve because we can do it. It is a continues thing and I’m confident that as Nigerians continue to learn the role, they will achieve perfection at the end of the day.

Mobile Money

On compensation for fraud cases, he said the affected bank will be liable if it was found to be responsible for the lapses but if it occurred as a result of carelessness of the account holder, he will bear the consequence.

In the area of job creation, the CBN representative said he was confident that there will be job increase as millions of jobs will be created as soon as the policy is embraced by more Nigerians.

“By appointing agents, jobs will be created. Just like in the case of GSM, people will apply as agents, start small businesses with this policy by paying DSTV charges, recharge cards, PHCN bills and other important payments. It is a wonderful thing.

We are trying to get a robust guideline with NCC
To ensure the success of the’ scheme, he said dedicated line for e-payment connectivity have been mapped out, adding thattha ongoing effort of federal government to boost power supply in the country, will be a boost to the mobile money service.

“We have spent a whole lot of money in communication, advertisement in conjunction with bankers committee and other stakeholders, trying to get people know that there are other avenues for them to bank.

Guaranteed security
Telling them that it is so convenient to bank with their phones. Security is guaranteed, so long as you did not expose your pin.”

“We have done the first phase for Lagos and we have seen that there is need to do more. We are on the drawing board to get to other areas. Change they say is difficult to come by but it will succeed. We cannot continue like this because banks spend too much money to process cash. Some people see mobile banking as an impossibility but when more people begin to use it, others will follow,” said Sansa.

Also speaking, representative of NCC, Mrs Mary Uduma, said that the 66th edition of the NCC Telecoms Consumer Parliament was about new form of banking and payment, aimed at educating Nigerians on the importance of the policy.

“The essence is for education, information and to empower participants to be able to know their rights, when it comes to mobile payment and mobile money. Our main function is to make sure that subscribers are protected and to ensure quality of service. We will continue to monitor network quality and service.

“We don’t see too much of challenge in that if you are able to send the message with GSM handsets you will be able to participate in mobile banking,” said Uduma.

She however assured the commitment of NCC to working with CBN to develop regulatory guidelines that will ensure a seamless operation of the system and also said that the commission is committed to educating people more in the local language to enable them know how to adapt to the new monetary transaction and also continue to protect them by constant monitoring of the network.