Economy
CBDC and Mobile Money – A Perfect Marriage
By Athu Karume
The rapid growth of mobile money has changed the payment landscape in Africa, alleviating the limitations of physical cash and barriers to banking services. The African mobile money story started in Kenya in 2007, when Safaricom launched its M-PESA solution for peer-to-peer money transfers. Shortly thereafter, the service spread quickly, starting in East Africa, and spreading out to the rest of the continent. Most mobile operators, including Vodacom, MTN, Orange, Telma and Airtel, are now providing mobile money services in most African countries. The initial success story of money mobile is due to a quick money transfer solution for unbanked and underbanked populations. Now, there are opportunities to make mobile money even more useful and efficient with CBDCs.
CBDC is a digital form of cash and part of the monetary base. It is a digital bearer instrument for store of value, payment, and settlement finality. CBDC is the direct liability of the central bank and has the lowest credit and redemption risk versus money issued by private entities.
A well-designed CBDC has the potential to improve payment efficiency at a lower cost and reduce payment risks typically associated with mobile money. A CBDC implementation that integrates into the existing mobile money services and systems will bring a new level of interoperable settlement efficiency, financial inclusion, convenience, safety, and financial stability.
CBDCs will augment and accelerate, not displace, or dampen, mobile money as a means of digital financial services. Mobile money services can interface their existing systems and apps with the CBDC platform to upgrade their services to send and receive CBDC in all kinds of domestic retail, wholesale, and cross-border financial services. Thanks to CBDC, mobile money services can remain available and deliver immediate settlement finality even when the users are out of network coverage.
MNOs are embracing CBDCs as a natural evolution of mobile payments. Mr. Eli Hini, Head of Mobile Financial Services of MTN Mobile Money Ghana shared his view on the benefits of CBDC, including the enhancement of digital payments, the opportunity for inclusion, offline (can transact without connectivity), clearing and settlement, and domestic transfers at the MoMo Stakeholder Forum 2022. “Innovation will always come, and just like mobile money came to create opportunities for people, other innovations (CBDCs) will come, and we should be ready to embrace it,” Mr. Hini told the audience.
With CBDC, commercial banks, MNOs, electronic money institutions (EMIs), microfinance institutions (MFIs) and fintech, will be more connected and accessible, creating a smoother, real-time, and more cost-effective way to make transactions.
On the other hand, existing mobile money services provide important and effect channels for rapid CBDC adoptions. CBDC adoptions require ease of signing up, ease of funding and using, widespread acceptability and usability, low cost of use and incentive, and public education. The general public is already familiar with mobile money services which are tailored for the different demographics with smart phones or feature phones. The operators have already created agent networks and business partnerships to facilitate funding and usage. Mobile money services are the ready partners to distribute CBDC ‘instantly’ to their existing user bases.
CBDC and mobile money is a perfect marriage. The interest in Central Bank Digital Currency (CBDC) has shot up in the past few years. Research and development of CBDCs have spread globally, particularly in ten countries in East and West Africa, where CBDCs and mobile money can complement and enhance each other very well in the drive towards financial inclusion.
Athu Karume is President, Africa Markets for eCurrency Mint and a 20-year veteran of the financial services and financial services and technology industries in Tanzania, US and Europe
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
By Adedapo Adesanya
The federal government will soon issue a fresh N729 billion bond to settle verified legacy debts owed to electricity generation companies (GenCos), marking another major step in its plan to restore liquidity and financial stability across Nigeria’s power sector.
The bond forms the second tranche of the first phase of the N4 trillion Presidential Power Sector Debt Reduction Programme and follows the successful issuance of about N501 billion in January 2026. Combined, both issuances make up the N1.23 trillion Series 1 and Series 2 components of the Capital Market Multi-Instrument Issuance Programme.
The initiative is part of the federal government’s broader strategy to clear longstanding payment obligations in the Nigerian Electricity Supply Industry (NESI), strengthen investor confidence and improve the financial health of the electricity value chain.
The chief executive of the Nigerian Bulk Electricity Trading Plc (NBET), Mr Johnson Akinnawo, said the forthcoming bond issuance represents the first phase of the wider N4 trillion programme approved by President Bola Tinubu to address verified legacy liabilities in the power sector.
“The second issuance demonstrates the Federal Government’s commitment to resolving verified legacy obligations through a transparent, structured and market-based mechanism,” Mr Akinnawo said.
He explained that the January 2026 bond issuance reflected the government’s fiscally responsible approach to settling outstanding obligations owed to GenCos while improving liquidity within the electricity market and strengthening the long-term sustainability of the sector.
According to him, the new bond will further reinforce confidence among investors and provide much-needed financial relief to market participants whose operations have been constrained by accumulated debts.
“By improving liquidity across the electricity value chain, the programme will help strengthen the financial position of market participants, support new investment and promote sustainable electricity generation for the benefit of Nigerians,” he stated.
Mr Akinnawo recalled that the Federal Executive Council (FEC) approved the establishment of the N4 trillion Presidential Power Sector Debt Reduction Programme in 2025, with NBET designated as the sponsoring institution responsible for coordinating the settlement of verified legacy obligations across the electricity industry.
He explained that the debt reduction programme is being implemented through multiple issuances of debt instruments by NBET Finance Company Plc, a Special Purpose Vehicle (SPV) established specifically to execute the programme.
According to him, the debt instruments are backed by the full faith and credit of the federal government and supported by comprehensive risk mitigation measures designed to ensure successful implementation and attract investor participation.
“The programme has the full backing of the federal government and incorporates a robust suite of instruments designed to mitigate transaction risks and support successful execution,” the NBET boss said.
He noted that the issuance of the approximately N729 billion bond would represent another decisive milestone in resolving longstanding financial obligations that have weighed on the electricity market for years.
Mr Akinnawo added that clearing the outstanding debts would strengthen the financial position of electricity generation companies, improve liquidity throughout the power value chain and create a more stable, bankable and investment-friendly electricity market capable of supporting Nigeria’s economic growth and expanding reliable electricity supply.
