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CBN Bans GSM Companies From Mobile Money Advertisement

By on December 30, 2011

The Central Bank of Nigeria, CBN, has banned GSM telecommunication companies from advertising on behalf of any mobile money scheme operators.

The ban was communicated via a circular to all mobile scheme operators, signed by Mr. Gaus Emokpae, Ag. Director, Banking & Payments System Department, CBN.

The circular said, “ It has come to the attention of the Management of Central Bank of Nigeria that Mobile Network Operators (Telecommunication Companies) have been carrying out public media advertisement on behalf of Mobile Payments Scheme Operators thereby sending wrong signals to the public as well as causing disaffection among the Scheme Operators.

“This is totally unacceptable. For the avoidance of doubt, no Telecommunications Company (Telcos) had been licensed by the Central Bank to operate any mobile money scheme in Nigeria.

However, the Bank is not unmindful of their critical roles, and hence the explicit assignment of responsibilities to them in the Regulatory Framework for Mobile Payments Services as infrastructure providers. Such responsibilities should be based on criteria which are transparent and generally applicable to all Scheme Operators without discriminatory practices against any scheme operator.

In order to build and sustain public confidence in the mobile payments scheme, it is hereby directed that henceforth, on no account should any Mobile Network Operator be allowed to advertise on behalf of any Scheme Operators or tie the operation of their system to any network.

“Customers should be able to operate the mobile payment system from any telecommunication network of their choice. Failure to adhere to this directive will attract appropriate sanctions and could lead to withdrawal of already granted license.”

One Comment

  1. Me4u49

    December 30, 2011 at 6:40 pm

    Yes it’s true not to allow any GSM company to take advertisement on behalf of any mobile money operator. But the question is, as partner in the scheme, can’t partners share responsibility in a scheme they drive?    In another word, you want user to decide which GSM operator to use. This makes the process of managing the scheme cumbersome (selecting service provide)r.Would selection be at the point of purchase or at delivery level?. I expect the bank to buy service from GSM company of choice rather than leave that to customer. This is a product to which they have invested and must be packaged in a way to make it easier for customer to buy in. We need clarification?. When do you expect user to to buy wireless service? and for Whose gain?. Making it a free for all for customers is a bad game for packaging a unique product of that nature… Huummm. something is wrong. Sanusi, check this out..