Zaire may once have been the location for Muhammed Ali and George Foreman’s renowned 1974 “Rumble in the Jungle” boxing fight, but it is now Nigeria that is the setting for some of the latest African rumblings, as banks and telecoms companies join forces to open new channels for retail banking customers. And, although today’s efforts may be more collaborative than combative, there is everything to play for as banks work to reduce costs and reach new customers, such as the unbanked populations living in rural areas.
While Nigerian banks have largely kept their heads down and focused on industry consolidation, mobile operators have taken the lead in promoting mobile payments. These operators – in particular the country’s number one and two – have been fighting to make their handsets an essential part of the payments process. According to figures from data company Wireless Intelligence (a venture between the GSM Association and Ovum), average revenue per user for Nigeria’s leading mobile operator, MTN, was €14.12 in the second quarter of 2006. “That reflects the kind of competitive pressure facing the market,” says Kabir Kumar, microfinance analyst, Consultative Group to Assist the Poor, World Bank.
