Nigeria: CBN Regulatory framework for mobile money services

On 9 July 2021, the Central Bank of Nigeria (CBN) issued the Regulatory Framework for Mobile Money Services in Nigeria. The framework governs digital financial services, mandating adherence to technology standards such as Triple (3) Data Encryption Standard (3DES) encryption, ISO 8583, EMV, and Payment Card Industry Data Security Standard (PCIDSS) for transaction security. It requires Mobile Money Operators (MMOs) to be licensed by the CBN, obtain unique scheme codes from Nigeria Inter-Bank Settlement System Plc (NIBSS), obtain unique shortcodes from the Nigerian Communications Commission (NCC) and ensure that all telecommunication equipment is type-approved by the Nigeria Communications Commission (NCC). The framework emphasises risk management, requiring MMOs to implement programmes to mitigate various risks and consumer protection, mandating clear transaction disclosures, 24/7 communication channels for enquiries, and dispute resolution mechanisms within 48 hours. Compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations is stipulated, with specified transaction and balance limits based on KYC levels.