http://www.channelstv.com/global/news_details.php?nid=29984&cat=Business

A Reuters report has confirmed that Africa's most populous nation is set to become the latest country on the continent to get on the mobile money system, a move which analysts say has the potential of transforming personal and business banking in the country.

Taking a hint from Keny and South Africa, Nigeria's central bank is set to implement the new system later this year after trials held across the country prove successful.

This new mobile money system will afford Nigerians the ease of transfer money and pay for goods with the use of their mobile phones, turning the country into the latest cash-less economy.

According to Reuters, about 65 percent of the Nigerian people don't own a bank account, they likely carry around wads of cash with them. Supporters of the system say the scheme would reduce the need to do that, which will in turn reduce the chances of theft, corruption and fraud.

"A lot of people carry cash around, they believe in that cash, if they don't see that cash there is problems, so they (will have) trust and make sure that this thing works," said Oluwadare Owolabi, founder and chief executive FETS, one of the 15 companies licensed by the central bank to operate mobile money.

An older statistic states that of Nigeria's population of over 150 million people, nearly 89 million of them have mobile phones, making more investors and financial companies interested in the mobile banking system.

In preparation for the new system the central bank has embarked on numerous workshops and conferences with people in the financial and telecom industry, Reuters reported.

Paga, a Lagos based financial company, is another company licensed to operate mobile money business. Tayo Oviosu, co-founder and chief executive of Paga says he believes the new system could transform Nigeria.

"I really do believe that the kinds of productivity gains that we saw in the West when the computer came out, and then we saw a gains when the internet came out, are the kinds of gains we are about to see in Nigeria with products like Paga, is that it will change people's businesses," he said.

Oviosu says the technology will lower the cost of remittances in Nigeria as it will remove the need for physical presence in order to ensure that transactions occur on time.

"Our goal is to have 15 million active customer base by 2015, and have 30,000 agents across Nigeria by 2015, we want to have an agent down the street for every Nigerian," said Oviosu.

But despite the excitement caused by Nigeria's progress towards an era of mobile money, experts have warned that the country's financial landscape which has been riddled with money laundering and fraud could discourage most people from using mobile money.

There are over 20 million bank accounts in Nigeria but few are active. Currently the majority of people would rather keep their cash at home where they can see it - a habit that some say will be hard to change.

What do you think about this?

Not Fully but if we dont start we will never be ready anyway its a big bonus and all the little bits and bobs will fall in place as we go forward

Yes, if they can make a fad of it.

Absolutely. This is something that should have been done some years back, we are way overdue for it.