95019 IFC Mobile Money Scoping Country Report: Nigeria June, 2012 About The MasterCard Foundation Program IFC and the MasterCard Foundation (MCF) entered into a partnership focused on accelerating the growth and outreach of microfinance and mobile financial services in Sub-Saharan Africa. The partnership aims to leverage IFC’s expanding microfinance client network in the region and its emerging expertise in mobile financial services to catalyze innovative and low-cost approaches for expanding financial services to low- income populations. The Partnership has three Primary Components Mobile Financial Service IFC and The MasterCard Foundation see tremendous opportunity with Microfinance mobile banking, particularly for those living in rural areas. Mobile phones Through this partnership, IFC will result in lower transactions costs and implement a scaling program for Knowledge & Learning reduce the cost of information. This microfinance in Africa. The primary partnership will (i) identify nascent This partnership will include a major purpose of the Program is to markets to accelerate the uptake of knowledge sharing component to accelerate delivery of financial branchless banking services, (ii) work ensure broader dissemination of services in sub-Saharan Africa (SSA) with private sector players to build results, impacts and lessons learned through the significant scaling up of expertise and infrastructure to from both the microfinance and between eight and ten of IFC‘s sustainably offer financial services to mobile financial services. These strongest microfinance partners in the unbanked using mobile knowledge products will include Africa. Interventions will include technology and agent networks and product and channel diversification (iii) build robust business models that into underserved areas. grow to scale and demonstrate to the market that MFS can be used to profitably deliver financial services to the poor. IFC has undertaken six (6) scoping reports in Rwanda, South Sudan, Liberia, Ivory Coast, Nigeria and Sierra Leone. These countries were chosen for the study because MFS were nascent, markets were difficult to reach, or other factors presented unique challenges. From these scoping reports, IFC will identify two nascent markets to provide broad and deep support to accelerate the uptake of branchless banking services, particularly among underserved and rural customers. This deck summarizes the non-confidential findings that were obtained by IFC and the UNDCF during the scoping mission. It provides a brief perspective on regulations, financial market, telecom market, and mobile financial service implememations. Acronyms • AML Anti-Money Laundering • B2P Business-to-Person (transfer) • CBN Central Bank of Nigeria • FI Financial Institutions • G2P Government-to-Person (transfer) • GDP Gross Domestic Product • KYC Know Your Customer • MCW MasterCard Worldwide • MFI Microfinance Institution • MFS Mobile Financial Services • MFSP Mobile Financial Services Provider • MMO Mobile Money Operator • MNO Mobile Network Operator • NCC Nigeria Communications Commission • NPS National Payment System • P2P Person-to-Person (transfer) • POS Point of Sale Terminal • PSP Payment Service Provider • PTSP POS Terminal Service Providers Nigeria Executive Summary Overall Mobile Money Readiness 4 (high, on a scale from 2-4 where 2 is low and 3 is medium) Current Mobile Money Solutions 15 licenses, 8 more in process Population: 155,215,573 (July 2011 est.), 8th largest country in the world Mobile Penetration: Approx 102 m subscribers, or 65% Banked Population: 25.4 m adults, or 16% of population Remittance % of GDP: Inbound $9.585 m, 5.56% Percent under poverty line: 70% Economically Active population: 56.3% - ages 15 to 64 Adult Literacy: 68% Banks with largest branch networks: UBA, Access/Intercontinental, First Bank, and Ecobank/Oceanic Mobile Network Operators: MTN, Glo, Airtel, Etisalat Ease of doing business: 133 out of 183 Additional comments: Nigeria is both unique and interesting, due to the regulatory framework as well as the large number of licensed MMOs. The manner in which the market unfolds over the next 12-18 months will shed light on issues of cash-lite, consolidation, agents, interoperability, and the broader payments landscape. Therefore, Nigeria will be an important country to watch and track. Quantitative measurements will be particularly informative. NOTE: In Nigeria, Mobile Financial Service Providers are referred to as Mobile Money Operators (MMOs) • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Macro-Economic Overview Key Country Statistics Insights • Population: 155,215,573 (July 2011) • 8th largest global population • Age distribution: 40.9% (0-14 years), 55.9% • Banked population and mobile penetration (15-64 years), 3.1% (over 65 years) numbers varied among interviewees • Urban/rural split: 48.4% urban • 40.9 % of population under 14 indicates strong future growth of economically active population • GDP (PPP): $377.9 billion, 32nd globally • Median age of 19 is an enabling factor for MFS • GDP per capita (PPP): $2,500, 175th globally • 70% in agriculture, 10% industry, remaining 20% • Population below poverty line: 70% in services • Economically active: 50.5 m in labor force • Urbanization growth rate of 3.5% indicates (2010), 4.9% unemployed (2007 est.) future pressure on infrastructure, and access • Literacy rate: 68% challenges in rural areas • Banking penetration: 25.4 m or 16% of • High percentage and value of remittances population has formal financial services# indicate International Money Transfer opportunity post domestic MFS deployments • Mobile phone penetration: 102 m (June 2012) accounts, equals 65% penetration • Low banked population coupled with high mobile penetration indicate growth opportunity • Remittance (% of GDP): 5.56%, $9.585m for mobile money Sources: Primary - CIA Factbook Website Jan 2012, EFinA Access to Financial Services Survey 2010. # Secondary- Based on interviews, 2012. Banking and Mobile Penetration Several factors constrain banking & payments growth, while mobile penetration has increased steadily 1. MMOs received licenses to provide mobile services in September 2011, so businesses 80 50% are just starting. 45% 70 40% 2. Regulatory clarity is needed in regards to 60 35% Mobile Penetration payments and interoperability Subscribers (Mn) 50 30% 40 25% 2. There are infrastructure challenges, i.e. 30 20% electricity and communications. Nigeria is a 15% 20 cash-based economy and infrastructure 10% challenges have hindered near-term adoption 10 5% of ATM and PoS. 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year 4. Most banks seem unwilling to extend reach to the mass market and MNOs are limited to Subscribers Penetration providing communication infrastructure, which could lead to reduced outreach. Successful mobile money deployments may bridge many of the challenges faced 5. With 155 m population, hugely expensive in growing traditional banking customer awareness campaigns are required. Source: World Bank DataFinder 8 • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Regulatory Bodies Roles & Responsibilities Implications • CBN Payments Division regulates all aspects of the National Payments System • NPS Management Bill provides for Central Bank of • Mobile money is regulated by CBN, but management, administration, operation, Nigeria managed in conjunction with the NCC regulation, oversight, supervision of (CBN) • National Payment System Management Bill payments, and clearing and settlement and Mobile Money Regulatory Framework systems were released in 2009 • Regulatory Framework for Mobile Payments, which has been developed to deepen financial inclusions, covers infrastructure, business rules, technology and compliance • Responsible for regulating infrastructure • Components of the payment regulation are required to support mobile money Nigerian leading to some uncertainty in the industry • Mandate through Nigerian Communications (switching, ATM, POS) Communications Act 2003 requires all new Commission SIM cards be registered as of May 1, 2010 (NCC) • Payment regulations fall under various • Draft bill is in the National Assembly to frameworks deal with registering current customers Other Industry Bodies Roles & Responsibilities Implications • Includes CBN Governor and Bank CEOs Bankers • Mandate from the CBN to lead industry Committee • Appears that many payment related issues (Formal) are discussed and decided here • Membership includes broad range of • Various industry bodies already exist, but players in the e-payments landscape E-PPAN • Aims to provide “voice of the industry” to many have limited mandates (Formal) the CBN and other regulators • Identify themselves as thought leaders in  Several informal mobile money recent regulatory changes (cashless Lagos) bodies being formed by MMOs, but lack cohesion or mandates • Event management company expanding scope to include e-payments • A broader industry led initiative creating Intermarc (Semi-formal) • Members, don‟t pay fees to belong the correct structures around industry • Aims to provide consumer awareness and bodies, their remits, and mandates would training in e-payments be helpful Mobile Money  Informal group of all licensed MMOs Groups (Informal)  In the process of being formalized Regulatory Framework – Mobile Money Models Current Regulations Implications Models in Regulatory Framework:  15 licensees with 8 more anticipated, CBN  Bank-focused: only deployed by deposit willing to license up to 30 MMOs Mobile Money taking financial institutions (FI)  Confusion by customers in market Operators  Bank-led: FI or its consortium as lead anticipated due to large number of players (MMO)  Non-bank led: corporate organization as  Role of MNO is restricted to provision of lead, explicit that this cannot be an MNO. infrastructure  MNO mobile money business models available  MNO activities limited to providing Mobile Network elsewhere are not possible in Nigeria. Leads infrastructure to licensed MMOs Operators to limited MNO value prop  Cannot refuse to provide services to any (MNO)  MNOs may find creative ways to position licensed MMO themselves around this regulation Lead organizations must:  Ensure regulatory compliance  Burden of all aspects of management and  Develop and manage agent network Lead risk resides with lead organization, including Organizations  Educate customers corporations that lead in non-bank led  Ensure adequate reporting by all parties, mobile money model including MNO  Implement risk controls Regulatory Framework - Agents & Customers Current Regulations Implications  Allowed: deposit money banks,  Cash-Lite Lagos regulations penalize cash microfinance banks, and discount houses deposits and withdrawals  Not Allowed: mobile network operators  Infrastructure not in place to easily enable Deposit Taking  CBN is regulating push toward e-payments shift from cash, so customer concern and away from cash through Cash-Lite  Ultimately, regulations should help drive Lagos customers to mobile money alternatives  Can enrol customers, accept deposits, and  Agents are required to have e-floats of as perform cash-out transactions much as N100,000 (USD$615) for each MMO  Can be individuals or companies, but must they represent Retail Agents have a bank account in Nigeria  Float management may lead to liquidity  Can be shared by multiple providers and issues if agent represents more than 1 MMO may not be exclusive to a single MMO  MNO may not be seen as driving customer  Lead organization must purchase fidelity acquisition insurance coverage for agents Payment service providers must: • Provide customers with training and  Office of Ombudsman created by CBN to Customer support services facilitate dispute resolution process Protection • Have procedures for efficient dispute  Mandate is to resolve complaints, encourage resolution transparency, monitor, and improve process • Guarantee 99% platform availability Regulatory Framework - KYC Current Regulations and Implications Banking Customer Verification M-payment status due required transaction limit diligence level Unbanked Least KYC Name, Max transaction limit phone no N3000 (US$20) and  Three levels of proportional daily limit of N30000 KYC are available for mobile (US$200) money  Enables easy registration of Partially Partial KYC Name, Max transaction limit unbanked and underbanked KYC/AML banked phone no, N10000 (US$67) and customers Requirements physical daily limit of  Lowest level KYC equivalent address N100000 (US$670) to requirements for SIM registration  Few to no issues or concerns about KYC reported by Fully Full KYC Name, Max transaction limit licensed, or potential, MMOs banked phone no, N100000 (US$670) physical and daily limit of address, N1000000 (US$6700) physical check Bank of Nigeria. Regulatory Framework for Mobile Payments Services in Nigeria. 2009. Regulatory Considerations - Interoperability Current Regulations Implications  ATM and POS infrastructure rollout and management must be outsourced by banks  CBN licensed 6 companies to serve as POS Terminal Service Providers (PTSP). Similar  Banks only responsible for sales, PTSPs Interoperability situation with ATMs responsible for installation and service (Card)  All ATMs and POS must accept all cards  NIBSS strategy presents a single point of (Interswitch, Visa, MCW) failure for all card based transactions  NIBBS (National switch) will act as merchant management system, all terminals route to NIBBS first  All MM solutions must be interoperable  All lead organizations will be issued a • Regulations about timing and approach to unique code by the NCC for managing both MMO and agent network Interoperability interoperability (Mobile) interoperability unclear  Final settlement will be through the CBN • Issues likely to surface with agent liquidity mandated settlement system when more than one MMO is represented  All mobile money deployments must also enable shared agent networks Historical Card Interoperability Model MERCHANTS MERCHANT SWITCHES CUSTOMER ACQUIRERS CARDS Verve Verve (Interswitch) Verve MasterCard Worldwide MasterCard Acquiring Banks MasterCard ValuCard ValuCard Visa (Visa) (Visa) Visa • ValuCard had an exclusive Visa merchant acquiring license for Nigeria and acted as an acquiring bank. All Visa cards were first routed through ValuCard for onward switching. Due to this exclusivity, merchants who wanted to accept other brands, such as MC and Verve, are forced to have multiple terminals. • Interswitch as a domestic switch developed its own payment scheme called Verve. • MasterCard followed its traditional model in Nigeria, but entered into a co-badging agreement with Interswitch for domestic transactions. • The economics behind the three payment schemes differed, creating confusion in the market. Current Card Interoperability Model CUSTOMER MERCHANTS MERCHANT MERCHANT SWITCHES CARD ISSUERS CARDS MANAGEMENT ACQUIRERS SYSTEM Interswitch (Verve/Master Card Visa Verve/ MasterCard MasterCard/ Acquiring Banks ValuCard Visa NIBSS (Visa) Verve • To resolve the issue with multiple POS terminals at merchant locations, the Central Bank mandated that all card transactions go through NIBSS, the central switch, before they are processed by other domestic and international switches. • The market is moving towards the above model • In addition to its merchant management system role, NIBSS will also perform settlement between the switches in the country. • The economics behind the three payment schemes is the same for domestic transactions – all charging 1.25% to merchants (with a cap of N2000) with issuers earning 0.25% in interchange Framework for Mobile Interoperability Model AGENTS MOBILE MONEY NATIONAL MOBILE MONEY CUSTOMERS OPERATORS SWITCH OPERATORS Verve (Interswitch) Bank-led Bank-led Bank-focused Bank-focused NIBSS Non-bank-led Non-bank-led Any customer from any mobile money operator (MMO) can transact at any agent of any other MMO. NIBSS will handle all switching, clearing, and settlment between the agent acquiring and mobile money issuing (customer) sides of the transactions. Additional Regulatory Considerations Current Regulations Implications  Receipts of international remittances must Could result in several outcomes: International be paid to a bank account or a reference  Increase and encourage account opening Remittances provided by a bank account holder (CBN  Make it harder for unbanked to access circular 7.5.10) international remittance services  Increase informal international remittances  Cash deposits and withdrawals of greater than N500,000 (USD $3,125) per individual  Previously cash was free Cash-Lite Lagos or N3 million ($18,750) for businesses incur  Short term impact of cash deposit fee of Pilot transaction fees*. Recent MFI relaxation. keeping cash out of the financial system  Pilot taking place in Lagos – fees will  Only 5% of transactions affected due to become effective 1 April 2012 threshold Payment service providers must: • Ensure that payment system automatically  Broader fraud issues are not discussed in generates settlement information detail in the framework, fraud risk therefore Risk Mitigation • Maintain audit and settlement trails for not sufficiently addressed in terms of five years reporting, monitoring, or control • Maintain a minimum paid-up capital of N20  Storage of information, specifically PINs, not million ($126,000) unimpaired by losses governed by overarching set of rules *Deposits over the limits are charged at 2% for individuals and 5% for businesses, while withdrawals are charged at 3% and 5% respectively • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Financial Sector Overview CBN Regulated financial Institutions Number Commercial Banks 21 Nigerian banks by branch network Microfinance Banks 904 licensed Post-Acquisition: FY10, Branches 800 Development Finance Institutions 5 711 Bureaus de Change 658 700 611 606 Finance Companies 81 600 Primary Mortgage Institutions 101 479 500 473 Discount Houses 5 400 351 333 Source: CBN Feb 2012 315 Market Share in e-Payments (2011) 300 249 232 230 215 200 186 180 200 154 e-Payments Volume Value Value (USD Segment (Millions) (N'Billion) Billion) 100 ATM 347.6 1561.8 9.8 % of Total 97.9 93.4 0 Web (Internet) 3.6 58 0.4 % of Total 1 3.5 POS 2.1 31 0.2 % of Total 0.6 1.9 Mobile 1.9 20.5 0.1 % of Total 0.5 1.2 Source: Renaisance Capital Estimates. Post-Acquisition 2010 Note: TOTAL 355.2 1671.4 10.5 Oceanic Bank has since merged with Ecobank Source: CBN July 2012 Large Financial Flows Potential Market Opportunity Description Potential Transactions/Mth Bill payments (utilities) • Majority pay bills by cash directly or through 21,650,000 bank teller • Little competition from financial sector Person-to-person (P2P) • Large rural population 46,252.000 transfers • High use of informal channels • Almost 80% of non-users and slightly over 50% of users still use bank tellers to transfer money Government-to-person • Some government programs, but very small 40,000 (G2P) payments Payroll (informal sector) • Large informal sector employing 70% of workers 37,821,000 • Offers potentially large unmet demand Public transport •Limited opportunity 10,000,000 •Small card industry and low penetration Significant and unrealized opportunity for m-money. Many of the preconditions for m-money exist, such as demand, supportive regulation, and an identifiable group of customers Potential opportunity, but substantial challenges Unlikely to be m-money opportunity due to lack of economies of scale or other constraints Source: IFC Mobile Money Study 2011 Nigeria E-Payment Analysis • Nigeria has powerful and experienced players in the traditional card payments business, as well as ambitious new entrants in the mobile money arena • Three themes are emerging which will influence the e-payments landscape over the next few years:  Regulations in the card payments business may put pressure on the profitability of the POS acquiring business  The Cash-Lite Lagos pilot aims to drive more transactions through the e-payments network and may thus exert further pressure on existing margins, forcing POS acquiring businesses to look at other avenues for cost reduction and profitability  Mobile money interoperability regulations may create a release valve for e-payment companies. Payment Service Provider Snapshot • Offers domestic card issuing and acquiring processing services through Verve and Interswitch international services through MCW • All 21 banks In Nigeria currently have connectivity to Interswitch, all MNOs connect to Interswitch for airtime top-up through ATMs and POS terminals • Offers domestic and international issuing and acquiring processing services for Visa ValuCard • Acts as a domestic switch for Visa cards processed by ValuCard (Visa) • Historically functioned as exclusive POS acquirer for Visa, changed by recent regulation • All 21 banks In Nigeria currently have connectivity to ValuCard • Offers mobile banking and payment services to member banks and institutions on their eTranzact platform (Genesis) • Operations in Nigeria, Ghana, Zimbabwe, Cote d„Ivoire, UK and South Africa. All 21 banks in Nigeria and major banks in Ghana currently have connectivity to eTranzact • Also all MNO's in Nigeria, Ghana and South Africa connect to eTranzact for airtime top-up via the mobile phones of subscribers Other Industry Players Snapshot • Business consortium that includes management consulting, advisory services in financial and non-financial sectors, technology consulting, and business incubation Nextzon • Spun out E-PPAN, a financial industry consortium, FinConnect, a shared platform for microfinance institutions, and One Network, which is building a shared agent network E-PPAN (Electronic • Payments association that was formed less than 2 years ago Payment Providers • 85 members that include banks, payment providers, and some MNOs. Association of Nigeria) • Using a web-based model to provide shared back-office and front-end technology platform FinConnect for microfinance institutions (MFIs) • Enables MFIs to offer cards and mobile services to their customers • Consulting and media firm focused on payments systems Intermarc • Run a number of card conferences across Africa, and publish a magazine called “Card Technology” NOTE: EFinA was not available for an interview during this mission. However, they are a very important player in mobile financial services in Nigeria. Their reports were an important source of background information to the team. • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Mobile Network Overview Mobile Profile Mobile Operators 4 GSM MNOs Mobile Coverage Over 90% Mobile Market Share (GSM) Mobile Subscribers 86 million % Share Population Coverage of Mobile Cellular Technology (%) 5.8% Population Coverage % - Nigeria 100 18.6% MTN 90 46.5% 46.5% Glo Mobile 80 70 Airtel 60 Etisalat 50 40 29.1% 29.1% 30 20 10 0 2002 2003 2004 2005 2006 2008 2009 Source:World Bank DataFinder (iPad Application). March 2012 Mobile Network Operators • MTN Group owns 76% • 40 million subscribers of shares • 46.5% market share • Nigerian individuals and key institutions own remaining 23% • Privately owned by • 25 million subscribers Mike Adenuga Group • 29.1% market share • Company also owns gas stations, which will partner with Glo • Owned by Etisalat, • 5 million subscribers Mubadala (Abu Dhabi • 5.8% market share sovereign fund) and Myacinth (group of Nigerian businessmen) • Airtel (India) • 16 million subscribers • Econet Wireless (under • 18.6 % market share dispute) • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Distribution Channel Overview • Some MMOs interviewed believe that Nigeria will need 50,000 to 150,000 cash-in/out agents, which is not incomprehensible in a country with such a large market size • Entrepreneurial companies, many aimed at providing services on the agent side, have started setting up on the periphery of the mobile money ecosystem. Their models include agent aggregation, agent management, and training. • If agents are shared by multiple MMOs without some form of aggregation, there will be agent liquidity challenges and agents will likely serve only a few MMOs at most. • Agent liquidity and interoperability issues will likely provide more opportunities for aggregators over time. These companies need to find ways to survive in the short term. Finding a space to operate will be a critical immediate challenge that must be mitigated to stay in the game Customer Proximity to Bank Branches >=10 Kms (11% respondents) Cost of Round Trip: USD 1.90 6 to 8Kms (20% Respondents) 4Kms (44% respondents) 2Kms (24% respondents) Cost of Round Trip: USD 0.25 68% of respondents live within 4 km of a bank branch, which is relatively close Thus, it may be important to understand why these branches are not used and what will be required to drive agent usage Sources: IMTFI MM Usage and EFinA Customer Research Conversion Rate: 1.00 NGN = 0.0063419 USD • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Mobile Money Overview • By not allowing MNOs to be licencees, the CBN aims to avoid scenarios where MNOs become entrenched in the banking and payment space to serve the mass market. • In response to current regulations, MNOs are developing strategies to leverage their brands, reduce attrition, and save on airtime distribution. • MNOs may gain more acceptance over time if bank-led strategies fail to meet CBN expectations. • In the short term, the large number of players receiving mobile money licenses is likely to create confusion in the marketplace. This situation is likely to stabilise over the next 12 to 18 months. • There is general agreement that education and financial literacy across the industry is a key requirement Mobile Money Licensees CBN has awarded 15 MM licenses, 8 more are in process. The licenses to date are: Bank-led Ecobank, partnering with Airtel in 14 countries across Africa First Bank, MOUs with Glo Mobile and Airtel, has not delivered service to market yet Stanbic Bank, in partnership to Glo Mobile GT Bank, partnership with MTN and being driven more by MNO than bank Zenith Bank, recently received a license Bank-focused Afri-pay, a subsidiary of UBA that has a multi-bank strategy Fortis Mobile Money, creating shared services for microfinance institutions Non-bank-led Pagatech eTranzact Eartholeum Monetise FET Paycom M-Kudi Prada Systems • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusions • Appendixes Potential Risks • There are limited commercial alignment, branding, and scheme rules to set the playing field and the “rules of the game” • With 20-30 mobile money operators concurrently marketing their solutions, customer confusion is more likely to result than understanding and acceptance • Several players have overly optimistic views of the level of scale that can be achieved in one year, as well as the level of effort required • Failure by one of the less prepared mobile money operators, or a serious fraud, could undermine customer trust and set back the industry. This issue is further exacerbated by limited fraud risk mandates in the regulatory framework. • Challenges with electricity and mobile downtime across the country could have a negative impact on customer experience • On the card side, the requirement for all POS terminals to connect through NIBSS is establishing the potential for a single point of failure • Cash-Lite regulations are being implemented by the CBN before the infrastructure is in place to enable consumers to make the shift Summary With its unusual regulatory environment and large group of newly licensed MMOs, Nigeria provides a unique opportunity to study the impact of a government-mandated move to electronic financial services. Research that tracks the industry‟s response to specific regulatory and market events in both the payments and MFS spaces would be instructive for Nigerian stakeholders as well as the broader MFS industry. The Nigerian MFS market is currently nascent and fragmented. With 15 licensees and the prospect of an additional 8 in the coming months, it can be expected that the number of players in the market will decline over time due to mergers, strategic partnerships, and/or business dissolution. Customer education was a primary challenge cited by all interviewees. Given the size of the market, this will be a substantial and costly undertaking that will require investment and commitment from all industry players. Participants might benefit from it by working together to share the cost of general awareness campaigns. Similarly, agent network build-out and management will be cost intensive. Although they have received limited traction at this time, some of the companies seeking to provide shared agent networks may achieve success as the market begins to mature. • Macro-economic Overview • Regulations • Financial Sector • Telecom Sector • Distribution Channel • Mobile Financial Services Landscape • Conclusion • Appendixes Bibliography • EFinA Reports  “Understanding the Low Income Population in Nigeria”. Mar 2011.  “Access to Financial Services in Nigeria 2010 Survey”. Nov 2010.  “Financial Services Landscape in Nigeria”. Sep 2010.  “Savings Mobilization in Nigeria: Scoping Study on Informal Savings in Lagos”. Mar 2010.  “Scoping Study on Payment Systems in Nigeria: Demand Side Key Findings”. Aug 2010  “Scoping Study on Payment Systems in Nigeria: Supply Side Key Findings”. Aug 2010 • IFC. “IFC Mobile Money Study – Nigeria”. 2011 • IMTFI. “Nigerian Mobile Money Knowledge and Preferences: Highlights of findings from a recent mobile money survey in Nigeria”. Jan 2011. • A.A. Ojo & S.Gaul. “Exploratory Analysis of Local Geographies of Need and the Proximity of Microfinance Service Providers in Nigeria”. Microbanking Bulletin. 2011. Interviews Organization Contacts Organization Contacts Afri-Pay MD/CEO Keystone Bank Divisional Head, Retail & Consumer Head Retail Business Development Banking Central Bank of Nigeria Assistant Director LFS Financial Systems Banking Advisor Co-Creation Hub NIGERIA Founder Nextzon Managing Director/CEO Eartholeum ED/COO Nigerian Communications Policy & Competition Department Chief Visionary Officer Commission (NCC) Ecobank – The Pan African Executive Director, Domestic Nigerian Communications Director – Policy, Competition & Bank Bank Head, Ecobank Mobile Commission (NCC) International Affairs E-PPAN EXEC SEC / CEO Paga CEO eTranzact CEO ShoreBank International Local Resident Advisor, IFC/ETI SME Development Program Fortis Mobile Money Executive Director ShoreBank International Local Resident Advisor, IFC/ETI SME Managing Director Development Program GLO Mobile Head, Mobile Money Stanbic IBTC Bank PLC Head, Personal and Business Head, Telebanking Banking Intermarc Consulting Limited Managing Partner Standard Bank Head, Financial Institutions Interswitch Managing Director/ CEO 1 Network Director, Payment Solutions & Business Expansion