Framework and Guidelines on Mobile Money Services in Nigeria
ng-mobilemoney-2021 · Guidance
Issued by the CBN in July 2021 as twin documents (a Regulatory Framework and accompanying Guidelines), this instrument governs the provision of mobile money services in Nigeria and replaced the earlier 2009/2015 mobile-payments regime. It sets out the business rules, participant roles, operational standards and risk-management requirements for mobile money, which is a core channel for digital financial inclusion in Nigeria. The framework recognises six categories of participant: regulators, Mobile Money Operators (MMOs), infrastructure providers, other service providers, consumers and mobile money agents. MMOs, licensed under the CBN's payments categorisation, are responsible for wallet creation and management, electronic-money issuance, agent recruitment and management, and settlement, but are expressly prohibited from granting loans, advances or guarantees and from taking foreign-currency positions. The guidelines require MMOs to obtain a unique scheme code from the Nigeria Inter-Bank Settlement System (NIBSS) and short codes from the Nigerian Communications Commission (NCC), and to comply with technology and interoperability standards approved by the CBN and NCC so that wallets and schemes can interoperate. Agent relationships must follow the CBN's agent banking rules. Operators must maintain a settlement/pool account in a manner that ring-fences customer funds, apply tiered KYC and customer due diligence consistent with the CBN's three-tier KYC regime, and meet AML/CFT obligations. Consumer-protection provisions address transaction limits, disclosure, complaint handling and dispute resolution, while data and transaction security standards govern the technology platform. The CBN supervises MMOs through licensing conditions, periodic returns, inspection and sanctions, and can suspend or revoke approval for non-compliance. By consolidating participant roles, interoperability mandates and prudential safeguards, the instrument is the principal operational rulebook for mobile money in Africa's largest economy.
- Recognises six participant categories, with MMOs licensed to issue e-money, manage wallets and recruit agents
- MMOs prohibited from lending, advances/guarantees and FX positions
- Mandatory NIBSS scheme code and NCC short codes, plus CBN/NCC technology and interoperability standards
- Customer funds ring-fenced via settlement/pool accounts; tiered KYC and AML/CFT compliance required
- Consumer-protection rules on transaction limits, disclosure and dispute resolution
- CBN supervision via returns, inspection and powers to suspend or revoke approval