Mobile Money Becomes Available In Nigeria
In today’s technology-driven world, more services are starting to become available online or through a cell phone app. An area that has seen a significant increase in its uses of technology is personal finance. This continued focus on development has been especially important for the rise of microfinance.
What Is Microfinance?
It is important to understand microfinance and how it differs. Microfinance generally refers to financial services that are specifically for individuals and small businesses that do not have proper access to banking services. The goal of microfinance is to provide more people with the opportunity to not only keep their money in one place, but it also makes it easier to save money for the future.
With nearly 433 million people in Africa utilizing mobile banking, increasing awareness of microfinance is becoming increasingly important. Unfortunately, mobile banking and microfinance services are still not well-known among Nigeria’s population, with four-fifths of Nigerians reporting that they have never heard of mobile banking or microfinance.
After seeing the remarkable difference in the number of people using mobile banking and microfinance, leaders throughout Nigeria began dedicating more focus on increasing the population’s awareness of the benefits. With improved access to the necessary resources, more people are able to save money at a new level. In Kenya, for example, about 93% of the population has access to mobile banking services.
In order to increase awareness and access to personal finance resources, the Central Bank of Nigeria became the first institution to be licensed to offer mobile banking services in 2017. After becoming licensed, the Central Bank of Nigeria announced its goal of increasing financial inclusion to 80% by 2020. The main goal of the bank is to provide communities with increased access to the resources they need to thrive.
In 2019, MTN Africa announced that they had been granted a license to offer mobile banking services in Nigeria. This exciting announcement is indicating a positive movement for the country and will make it easier for millions of Nigerians to save money. Because of the important work from organizations like the Central Bank of Nigeria and MTN Africa, more people are getting an opportunity to take control of their finances.
Originally posted on AishaBabangida.org.