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Nigerian mobile money accounts grow by 22% – GSMA

THE GSMA has stated that the percentage of people with mobile money accounts increased from 16 to 22 percent in 2022.

According to the international organization that represents telecommunications companies, the recent Payment Service Bank license that the Central Bank of Nigeria issued to MTN and Airtel is responsible for the growth.

A report titled, ‘The State of the Industry Report on Mobile Money 2023,’ said, “Among all adults that are aware of mobile money and have used a mobile phone, mobile money account ownership has grown from 16 per cent to 22 per cent in the last year.

“Of all adults with a mobile money account, 88 per cent have one registered in their own name (a nine percentage point increase year on year).”

The increase in registered mobile money accounts in 2022—from 1.4 billion in 2021 to 1.6 billion in 2022—was driven in part by regulatory improvements across Sub-Saharan Africa, particularly in Nigeria and Ethiopia. On a 30-day basis, the Sub-Saharan African area saw an increase in global active accounts as more users began utilizing mobile money accounts more often.

In Nigeria and other Sub-Saharan African nations, transaction value increased to $832 billion in 2022. In 2022, digital transactions increased as cash usage decreased. Between 2021 and 2022, transaction values increased by 22%, from $1 trillion to over $1.26 trillion.

GSMA noted, “However, the share of cash-based transactions in the overall transaction mix declined, with cash-in and cash-out transactions dropping nearly two percentage points. This is due to a significant rise in digital transactions, particularly interoperable bank transfers, and bill payments.”

According to the association, $3.45 billion were transacted daily via mobile money in 2022, exceeding forecasts for global daily transaction values. In 2022, the overall number of mobile agents also increased by 41% year-on-year.

“The number of mobile money agents grew from 12 million in 2021 to around 17 million in 2022 – a staggering 41 per cent year-on-year increase,” GSMA said.

“Much of this growth was in Nigeria where a liberalised regulatory regime has led to an increase in MMPs. Agents are an important part of any mobile network service and were responsible for two-thirds of all cash-in transactions in 2022.”

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