Research: Mobile Money Adoption In Nigeria IS Still Low

A new survey by NOI Polls Limited shows that about six in 10 Nigerians (59 per cent) Nigerians are not aware of mobile money services and only 13 per cent of those that are knowledgeable (41 per cent) of the money transfer platform currently used it; showing a very low adoption rate.

NOI Polls is Nigeria’s leading Opinion Polling and Research Organisation which works in partnership with The Gallup Organisation (USA) to develop opinion research in Nigeria.  The Mobile Money Services Snap Poll was conducted in the week of August 5, 2013.

NOI research revealed that teenagers, young and middle aged adults are more willing to adopt the services than senior citizens.

The survey, which sought to determine the ratio of mobile money users with bank accounts to those without, stated that majority (93 per cent) of those that used the service operated their mobile money account in connection with their bank accounts.

All the mobile money service users (13 per cent) were all banked showing little or no adoption of this service by the unbanked, it added.

Analysis based on geo-political zones according to the study, showed that the South-South (54 per cent), South-West (46 per cent) and the North-Central (43 per cent) zones have the highest proportions of respondents who know of Mobile Money services.

Conversely, the North-East (70 per cent), South-East (64 per cent) and the North-West (63 per cent) zones account for the highest proportions of respondents not aware of the mobile services, among other findings by NOI Poll.

According to the survey, majority of the users (86 per cent) indicated ‘banks’ as their financial service provider.

Relatively, 12 per cent indicated ‘mobile money agents’ as their provider and one per cent indicated other sources.

 “This shows that mobile money services have not had any impact on the financial inclusion of the unbanked Nigerians so far. The general perception of users of the mobile money service as indicated by the majority is that it is easy to use, it is secure, service providers are easily accessible, it saves cost and it saves time,” the report stated.

 “What is key to note is the almost non-adoption of this service by the unbanked, this can be detrimental to the success of the cash-less policy as a large percentage of the adult population remains unbanked.

“As Nigeria is currently transitioning towards being a cash-less economy, more awareness has to be created about the mobile money payment option with emphasis placed on including the rural population and unbanked Nigerians in the roll out process.”

It is worth noting that about seven in ten (71 per cent) non-users say they would consider using mobile money services in the future.

NOI attributed the slow pace of adopting the mobile money services in Nigeria to the low public awareness on the payment transfer system. Other challenges include lack of finance and basic infrastructure; very few agents; and the exclusion of mobile operators from taking part in the execution of the services.

Mobile money services was introduced by the CBN about two years ago to provide basic financial services and create payment access especially to the unbanked populace as well as to help drive financial inclusion in the country.

The apex bank had issued licences to 16 companies to operate mobile money transactions all over the states in August 2011.

With mobile money services, individual can make money deposits, pay bills, transfer funds and pay for goods and services purchased. Mobile money banking gives the individual more freedom in managing their finances with the benefits of greater access to financial services, better cash management, improved personal financial planning and greater ability to save.

It also serve as an alternative way of storing money, for both account and non-account holders. It reduces the risk of theft and loss of money as it does not involve the handling of cash as monetary transactions are done on mobile phones through text messaging.

If fully explored, mobile money is a real tool for economic growth and development.