Left Behind: How Poor Network Access Is Shutting Rural Nigerians Out Of The Mobile Money Boom
In the remote village of Temidire, located in Ibarapa East Local Government Area of Oyo State, mobile phones serve more as ornaments than tools for communication.
The village, far from the closest telecommunications base station, only occasionally receives weak and unreliable network signals—often influenced by weather and terrain. Making a simple phone call or sending a message requires not just patience but sometimes climbing to higher ground.
But this struggle isn’t limited to the locals. Each week, buyers from different parts of Oyo State converge at Temidire’s vibrant market to source fresh farm produce. Yet, despite the heavy foot traffic, one crucial amenity remains scarce: stable mobile connectivity. Visitors accustomed to mobile transfers and digital payments must revert to cash, as network service is often patchy or unavailable altogether.
For 35-year-old farmer Alabi Oduwole, his bedroom doubles as his bank. Traveling nearly 25 kilometers to the nearest town with banking facilities is not financially sustainable.
“If I could send and receive money on my phone, I’d be happy. But that’s not possible here. Only Airtel works sometimes, and even that’s unreliable,” he lamented.
Temidire’s plight highlights a broader issue plaguing many rural Nigerian communities: the rise of mobile banking and digital finance has left them behind.
Mobile Money Thrives—But Only in Urban Nigeria
While cities celebrate the boom in mobile money, rural areas are still waiting for the benefits to reach them. According to the Nigeria Inter-Bank Settlement Systems (NIBSS), mobile money platforms processed transactions worth ₦71.5 trillion in 2024—a 53.4% increase from ₦46.6 trillion in 2023.
Transaction volume also rose sharply, from 3 billion in 2023 to 3.9 billion in 2024. PalmPay, a major operator, reported surpassing 15 million daily transactions in Q1 2025. Similarly, Paga, another fintech leader, processed ₦1.5 trillion in May 2025 alone—a figure that previously took the company over seven years to reach.
Despite these impressive figures, communities like Temidire are excluded from this digital financial success story.
Widening Financial Inclusion Gap
The EFiNA Access to Finance (A2F) 2023 report shows that 48% of Nigerian adults lack any form of financial or transactional account. The gap is most noticeable in rural and underserved communities.
“The use of banking services heavily favors the urban population, particularly those who are male, educated, and middle-aged,” the report notes.
Additionally, over 28 million Nigerians have National Identification Numbers (NIN) but no financial accounts, further illustrating the growing disconnect.
Rural Areas Struggle with Basic Connectivity
Poor network infrastructure is one of the major barriers. A report by the International Telecommunications Union (ITU) highlights how Africa’s digital rise is driven by young, urban populations, while rural communities lag far behind.
In 2024, internet usage in Nigerian cities stood at 57%, compared to just 23% in rural areas—the widest digital divide among all ITU regions. This gap is widened by the unequal rollout of advanced network infrastructure, with urban areas getting 4G and 5G while rural regions remain stuck with 2G.
As of April 2025, 39.67% of Nigeria’s mobile connections still rely on 2G networks, primarily in rural zones, according to the Nigerian Communications Commission (NCC).
PalmPay CEO Chika Nwosu acknowledged this challenge, stating that the company has introduced Unstructured Supplementary Service Data (USSD) to enable users in low-connectivity areas to perform transactions without smartphones.
However, even USSD becomes ineffective in places like Temidire, where network signals are barely available.
Addressing the Divide
Tech expert and Sigmanox NG founder Ahmed Ogundimu says low digital literacy and distrust in fintech solutions also hinder adoption in rural Nigeria. He advocates for:
- Investment in rural telecom infrastructure
- Expansion of mobile money agent networks
- Simplified, local-language interfaces for digital services
- Public and private initiatives to promote financial literacy
“The government can support inclusion by offering incentives to financial institutions that establish rural branches,” he added.
Lagos Business School’s Executive in Residence, Mr. Olu Akanmu, agrees. He recommends integrating financial inclusion into broader economic programs, such as agriculture and MSMEs. He also emphasizes the importance of affordable phones and wider agent networks.
Government’s Push to Improve Access
The federal government has launched several initiatives to narrow the connectivity gap. These include:
- Project BRIDGE, to extend Nigeria’s fibre optic network by 90,000 km, beginning Q4 2025.
- Project 774, which targets high-speed connectivity in every local government secretariat.
- Universal Access Project, aiming to connect over 20 million unconnected Nigerians through 7,000 telecom towers, built under a Public-Private Partnership.
- 1000 additional BTS (Base Transceiver Stations) in rural areas by 2030 through the Universal Service Provision Fund (USPF).
USPF Secretary Yomi Arowosafe revealed plans to partner with device manufacturers to provide affordable mobile phones in these underserved communities.
Analysts note that while these initiatives are promising, their success depends on efficient execution and sustained political will.
This report was produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.