Nigeria - Key Findings from the Scoping Report
- With its unusual regulatory environment and large group of newly licensed mobile money operators, Nigeria provides a unique opportunity to study the impact of a government-mandated move to interoperable digital financial services. Research that tracks the industry’s response to specific regulatory and market events in both the payments and mobile financial service spaces would be instructive for Nigerian stakeholders as well as the broader mobile financial services industry.
- The Nigerian mobile financial services market is currently nascent and fragmented. With 15 licensees and the prospect of an additional 8 coming on-line, 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 working together to share the cost of general awareness campaigns.
- Similarly, agent network build-out and management will be cost intensive. Although they had received limited traction at the time of the scoping, some of the companies seeking to provide shared agent networks may achieve success as the market begins to mature.