Since 2010, the Central Bank of Nigeria (CBN) has introduced the cashless Policy to reduce the huge value of cash in circulation.
The Cashless Policy was launched first in Lagos in 2010 and then extended to six other states in 2013 (FCT, Enugu, Port Harcourt, Anambra, Abia). As of the 1st July 2014, Cashless Policy went nationwide. In order to encourage cashless behavior, CBN stipulates a ‘cash handling limits and charges’ with N500, 000 for Individuals and N3,000,000 for corporate bodies.
With less than 5,500 bank’s branches and 12,000 ATM for more than 100 million adult populations and the cost associated to build brick and mortar branches, Mobile Money becomes the cheapest way to provide financial services to the unbanked and the rural areas of the country.
In consideration of the above and the objective of turning Nigeria into a modern economy, Mobile Money represents obviously one of the strategies that CBN is driving to achieve the full adoption of Cashless behavior and increase Financial Inclusion. Thus the new business opportunity in the Mobile Money Industry in Nigeria that needs to be tapped.