The rapid growth of Liberia’s mobile money sector has raised fresh concerns about regulatory oversight and financial security, even as the Central Bank of Liberia (CBL) touts the surge as a sign of digital financial inclusion.
At the recent launch of the National Financial Education Program (Fin-Ed) and the Pan-African Payment & Settlement System (PAPSS), the CBL revealed staggering figures: mobile money transactions reached L$471 billion and US$3.47 billion in 2024, reflecting a substantial rise from 2023. However, while the government celebrates these numbers as a step toward modernization, financial experts question whether Liberia’s regulatory framework is robust enough to protect consumers and prevent financial crimes.
The CBL’s report highlights a year-over-year increase of L$50 billion in Liberian-dollar mobile money transactions and significant expansion in U.S. dollar transactions. Proponents of digital finance argue that this surge demonstrates Liberia’s progress in financial inclusion, particularly for citizens in rural areas who previously lacked access to traditional banking services.
Yet, analysts warn that the rapid expansion of mobile money could be outpacing regulatory mechanisms meant to safeguard users. “While the numbers are impressive, the real question is whether Liberia has the financial regulations in place to manage such an explosive growth in digital transactions,” said a financial analyst in Monrovia.
Cybersecurity threats, transaction fraud, and money laundering risks loom over the mobile money sector. Reports of unauthorized deductions, fraudsters exploiting loopholes, and regulatory lapses have made some users skeptical about the safety of their digital wallets.
While mobile money has made transactions easier and faster, critics argue that the benefits may be skewed toward telecommunications companies and financial institutions rather than ordinary Liberians. The cost of transactions, hidden fees, and inconsistent service quality have left many questioning whether mobile money is truly democratizing finance or merely shifting profits from banks to telecom providers.
Moreover, despite the expansion of mobile money, cash remains dominant in much of Liberia’s economy, particularly in the informal sector. “For all the growth we’re seeing in mobile transactions, the reality is that a significant portion of the economy still operates outside the digital financial system,” an economist noted.
The Liberian government has been pushing for greater adoption of mobile money, integrating it into salary payments, tax collection, and other official transactions. However, enforcement of financial regulations remains weak, and concerns over consumer protection persist.
The CBL has assured the public that it is strengthening oversight and security measures, but with billions of dollars now flowing through digital platforms, will the government act swiftly enough to prevent abuses?
