A large telecommunications company, which has not been identified, is reportedly under investigation by the Central Bank of Nigeria (CBN) because of its work with two Nigerian banks on establishing mobile banking services. According to CBN Governor, Sanusi Lamido Sanusi, mobile banking services are to be administered by CBN-regulated banks and not telecommunications companies. Mr. Sanusi reportedly stated that the matter is being investigated for the primary purpose of protecting depositors. No mention has been made of possible penalties the telecommunications firm may face.
CBN, established in 1958, is Nigeria’s central banking authority. As of November 2012, CBN reports total assets of NGN 13.3 trillion (USD 82.4 billion).
By Lena Phillips, Research Associate
About Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of November 2012, CBN reports total assets of NGN 13.3 trillion (USD 82.4 billion).
Sources and Additional Resources:
Leadership.ng: “CBN Investigates Violation of Banking Rules by Telecom Firm”, http://leadership.ng/nga/articles/41884/2012/12/06/cbn_investigates_violation_banking_rules_telecom_firm.html
MicroCapital.org article, 27 November 2012: “MICROCAPITAL BRIEF: Virtual Terminal Network (VTN) Boosts Mobile Payment System in Nigeria”, https://www.microcapital.org/microcapital-brief-virtual-terminal-network-vtn-boosts-mobile-payment-system-in-nigeria/
MicroCapital.org article, 27 April 2012: “MICROCAPITAL BRIEF: MTN, Stanbic IBTC Bank Partner to Provide Mobile Money Services in Nigeria”, https://www.microcapital.org/microcapital-brief-mtn-stanbic-ibtc-bank-partner-to-provide-mobile-money-services-in-nigeria/#more-18515
MicroCapital.org article, 22 January 2012: “MICROCAPITAL BRIEF: To promote Electronic Payments, Central Bank of Nigeria Taxing Cash Transactions”, https://www.microcapital.org/microcapital-brief-to-promote-electronic-payments-central-bank-of-nigeria-taxing-cash-transactions/#more-16504
MicroCapital.org article, 20 December 2011: “MICROCAPITAL BRIEF: Fortis Mobile Money to Enable Mobile Phone Banking for 180 Members of Nigeria’s National Association of Microfinance Banks, Lagos State Chapter (NAMBLAG)”, https://www.microcapital.org/microcapital-brief-fortis-mobile-money-to-enable-mobile-phone-banking-for-180-members-of-nigerias-national-association-of-microfinance-banks-lagos-state-chapter-namblag/
MicroCapital Universe Profile: Central bank of Nigeria (CBN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
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