Interoperability among Mobile Money Operators (MMOs) in Nigeria

The lack of interoperability, among other challenges, can be considered as one of the factors hindering the penetration of mobile money in Nigeria; which remains low at 1.0% of adults as at 2016. While the Central Bank of Nigeria (CBN) requires that all MMOs connect to the National Central Switch (NCS) to enable interoperable transactions, in practice, customers do not experience seamless interoperability which results in various transaction failures. An industry-wide test conducted in 2016 confirmed a 75% failure rate in system interoperability among MMOs.

In September 2017, EFInA conducted an interoperability study to review lessons from other markets that have successfully deployed mobile money interoperability. Global experience shows that interoperable systems provide more value to customers, promote cashless economies and further financial inclusion. Findings from the study revealed that supportive regulatory environments, partnerships between operators and regulators, focusing on governance, operating rules & business agreements between players would significantly improve interoperability.

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