IMF Discloses Nigeria’s Mobile Money Agent Outlets Hits Six Year High

The number of registered mobile money agent outlets per one thousand kilometres square in Nigeria surged to the highest in six years, according to a new report by the International Monetary Fund (IMF).

The report showed that the number of outlets rose by 137.7 percent to 1,618.6 in 2022 from 680.9 in 2021. The number of registered mobile money accounts per 1,000 adults also increased to 225.9 from 191.0.

The value of mobile money transactions as a percentage of the GDP grew to 16.11 percent from 8.74 percent.

The IMF’s report is a unique supply-side dataset that enables policymakers to measure and monitor financial inclusion and benchmark progress against peers. Launched in 2009, it is based on administrative data collected by central banks or financial regulators from financial institutions and service providers.

The mobile money agents, widely described as ‘human ATMs’, are third-party retail outlets contracted by financial institutions to process clients’ transactions. They are empowered to reduce reliance on over-the-counter transactions while providing convenient personalised services.

The agents are equipped to carry out services that include account opening, cash deposit, airtime purchase, bills payment, withdrawals, and money transfer.

Globally, agency banking is recognised by policymakers, researchers, and development agencies as a financial inclusion initiative that has remained an integral tool in developing economies, particularly in the areas of poverty reduction, employment generation, wealth creation, and improving welfare and general standard of living.

According to the Authors of the IMF report, The means to access finance have been rapidly changing in recent years, with traditional financial access points such as ATMs and bank branches gradually declining while non-traditional access points such as retail agents and mobile money agents are growing rapidly.