Subscribers of Mobile Money Operators who have been deterred by insecurity and theft armed robbery of the mobile money agents have been covered by the Nigerian Deposit Insurance Corporation (NDIC) through the pass through insurance. Aside from the pass through insurance, all super agents, agents and sub agents have been mandated to take up Fidelity bond insurance which covers any theft robbery incident involving pool account of the subscribers.

The Director, Research policy and International relations dept of NDIC, Dr. Jacob Ade Afolabi, stated at the 2015 NDIC FICAN forum just concluded at Ilorin Kwara State Capital.

In his presentation on payment systems and pass through Deposit Insurance, Afolabi said that pass through deposit insurance takes place when funds are deposited by a custodian on behalf of one or more actual owners of funds, the NDIC insures the funds as if the actual owners had established the deposit in the insured bank. It is a coverage that guarantees the funds of subscribers of mobile money in the DMBs in the event of failure.

The pass through insurance was based on the bare trust, a situation where each beneficiary holds a separate share and is entitled to protection within the parameter of the scheme.

Afolabi also defined the payment system as one which is used to transfer funds by means of formal, standardized processes and collective rules concerning handling, netting and settlement of payment from one segment of the economy to the other.

While he identified challenges of the payment system and pass through insurance and technology: connectivity and down time, cost of doing business in the country, awareness and publicity, he averred that the rising incidence of e-fraud, liquidity and reputational risks on the MMOS and their agents remain a big obstacle yet to be surmounted.

He, however, advised that NCC, the regulator should ensure strict regulation of the TELCOS for efficient service delivery; stressing that the regulators should make the TELCOs upscale the service they render in Nigeria to be at par with their home countries.

Besides, government should provide enabling environment in terms of power supply and security.

Meanwhile, the regulators should ensure the regulators and operators on IT software used, e-fraud detection, Investigation and prevention. MMOS, he argued should ensure that their agents are liquid at all times. This is to improve the credibility of the entire system. Accordingly, he advocates aggressive deployment of payment channels for easy availability as well as adequate training on oversight functions on electronic payments schemes.