The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) are reportedly in the process of designing an insurance mechanism to protect customers of mobile payment operators. The initiative aims to encourage the growth of mobile money across the country by increasing customer confidence. The policy will help “expand, deepen, and modernize the payment system,” according to a statement attributed to Governor Mallam Sanusi Lamido Sanusi. The service is expected to bring about 50 million more Nigerian customers to the banking system.
By Brett Cohen, Research Associate
About Central Bank of Nigeria
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 2011, CBN reports total assets of NGN 9.77 trillion (USD 61.9 billion).
About Nigeria Deposit Insurance Corporation
The Nigeria Deposit Insurance Corporation (NDIC) is a quasi-independent agency of the federal government of Nigeria. Its purpose is to protect depositors and guarantee the settlement of insured funds when a deposit-taking financial institution can no longer repay its deposits, thereby helping to maintain the stability of the financial system.
Sources and Additional Resources
This Day Live Press Release, “CBN, NDIC to Insure Mobile Money Subscribers”
http://www.thisdaylive.com/articles/cbn-ndic-to-insure-mobile-money-subs…
MicroCapital.org story, May 28, 2012, “MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Financial Inclusion Strategy Includes Goal of 63m Savings Accounts by 2020,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-c…
MicroCapital.org story, May 18, 2012, “MicroCapital Brief: Central Bank of Nigeria (CBN): MSME Development Fund Not for Bailing out Microfinance Banks”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-c…
MicroCapital Univerise Profile for Central Bank of Nigeria (CBN):https://www.microcapital.org/microfinanceuniverse/tiki
MicroCapital Universe Profile for Nigeria Deposit Insurance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nig…
Browse the MicroCapital Universe and add your entry to the wiki at:https://www.microcapital.org/microfinanceuniverse/
