Lagos, Ogun, Kano and Oyo are the top states that are likely to influence the growth of the Payment Service Banks (PSBs) based on the huge number of mobile subscribers they have.
According to the National Bureau of Statistics (NBS) telecoms data, these states had a total of 192.4 million active voice subscribers and a total of 144.9 million internet subscribers in Q1 2021.
A breakdown of the data shows that in terms of active voice subscribers, Lagos has the highest number with 23.3 million, followed by Ogun (11.3m), Kano (10.9m) and Oyo (10.1m).
Furthermore, in terms of active internet subscribers, these states also have huge subscribers. MTN has the highest share of subscriptions closely followed by Glo, Airtel, and EMTS, respectively.
This buttresses an opportunity for the PSBs in Nigeria, Ayodeji Ebo, head, retail investment, Chapel Hill Denham, says.
He notes, “The telcos have a strong infrastructure and huge subscriber base, hence the cost of transactions will be minimal for the PSBs relative to commercial banks.
“High transaction cost is a major factor preventing many potential bank customers from using a bank account. The telcos will also be able to leverage their agents in rural areas to facilitate transactions, hereby attracting more of the unbanked.”
Recently, the Central Bank of Nigeria (CBN) granted Approval in Principle (AIP) for PSBs licences to MTN Nigeria and Airtel Africa, Nigeria’s leading telecom companies.