Lagos, Nigeria: Indications have emerged that Nigeria banks have moved against the quest of  MTN Nigeria and Zain to obtain M-Banking license operations from the Central Bank of Nigeria (CBN). The regulatory body has only issued one mobile banking operating license to MoneyBoxAfrica to deplore branchless banking services across the country.

However, efforts by MTN Nigeria and Zain to secure the same license have been rebuffed by CBN. Finacialtechnology learnt that the refusal of the apex bank to grant the Mobile Network Operators (MNOs) the license is as a result of Nigeria banks antagonistic to the idea.

Sources at the apex bank say the banks are wary of the implications of allowing non-financial institutions with vibrant brands and deep wallets to venture in financial services industry. “They don’t want to be caught unawares like Kenya banks were with M-Pesa M-Payment system, which is powered by Safaricom, the leading MNO in the country”, he quipped.

As a result, CBN may have stopped the issuance of M-Banking license to these MNOs until it put a guideline in place that governs the introduction of branchless banking in Nigeria. It would be recalled that the apex bank recently circulate draft guidelines on branchless banking in the country, seeking for contributions from all the stakeholders. This development is a major setback for MTN’s and Zain’s plans to establish a-pan African M-Payment system across all their countries of operations.

MTN M-Banking business development executive, Dave Parratt, in December 2008 told Financialtechnology that the mobile telecommunications giant will provide M-Banking services across its operations in Africa. According to Parratt, the solution from MTN will differ from those already available, because it will not require any physical infrastructure, but rather a network of rural distributors which already exists.