• A recent report by GSMA, the global organization representing the mobile ecosystem, has said mobile money is an untapped goldmine in Nigeria
• The organization stated that the mobile money industry presents opportunities for job creation and financial inclusion
• The report by GSMA said about 71% of the mobile money market remains untapped in Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The GSMA, a global organization unifying the mobile ecosystem, has stated that the mobile money economy is an opportunity for job creation and financial inclusion in Nigeria. 

Angela Wamola, Head Sub Saharan Africa, GSMA, disclosed while speaking to journalists on the sidelines of the GSMA Nigeria Digital Economy Report Launch on Thursday, May 9, 2024.

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Africa records $920 billion via mobile money

According to her, in 2024 alone, $920 billion was transacted digitally on the African continent, more than the entire export value of Africa for a year.

She said: 

''If you look at the state of the industry report of the GSMA released in March which is about the mobile money economy 2024, you will see that the current contribution in terms of the mobile economy, money mobile leveraging on the current infrastructure. "You will also know that money was moved in the continent - persons to persons mainly, and other new services like micro-lending and savings, but just alone in terms of movement of money, in terms of transaction value, $920 billion moved in Africa. ''That represents more than Africa's entire exports in a year, and it grows by double digits year over year. So, digital money moves money more efficiently, which stimulates the economy.  

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''When you look at economies that are doing well in Africa or progressing in the narrative of becoming digital nations, you see Kenya, Tanzania, and Ghana, and they piggyback off mobile money.  ''So, Nigeria can learn that the mobile economy isn't a gatekeeper. It is a game-changer because it leverages the mass market and creates jobs because it runs on networks. 

Wamola added that financial inclusion is the bedrock of digital services, stressing that Nigeria has a lot to do in closing the gap.

''When you look at Nigeria, compared to, say - Tanzania and Kenya, financial inclusion is growing, but Tanzania, Kenya, and Ghana are closing the gap...more than 80% of financial inclusion. Also, the gender gap is closing in those countries. ''In Nigeria, there is a 46% gender gap, and this is an economy that thrives on a youthful population, highly educated and yet you have a huge gender gap. So it just shows you that there are opportunities to unlock, stimulate, and remove things that do not benefit the economy,'' she stated. 

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Nigeria's mobile money market remains untapped.

Meanwhile, the GSMA’s report emphasizes that while 29% of Nigerians regularly use mobile internet, there remains an untapped potential of 71% who do not access these services regularly. 

''An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028. However, the sector faces challenges to infrastructure deployment,'' the report noted.

The report recommends initiatives to help policymakers create an economic and regulatory environment that promotes growth, investment, and competition. 

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Source: Legit.ng

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