Role of Governance in Building Trust and Enhancing Consumer Protection in the Mobile Money (Point of Sale) Ecosystem in Nigeria

This study investigates the critical role of governance in building consumer trust and enhancing consumer protection within the mobile money ecosystem, with a specific focus on Point of Sale (POS) transactions in Nigeria. Despite the rapid growth and accessibility offered by mobile money services, concerns regarding security vulnerabilities, fraud incidents, and inadequate consumer protection mechanisms pose significant challenges to widespread adoption and trust. Addressing these issues, the research examines the relationship between governance practices (including transparency, accountability, and board oversight) and consumer outcomes (trust and protection), as well as the mediating influence of regulatory frameworks and board oversight. Utilizing a mixed-methods research design, the study collected quantitative data through standardized questionnaires administered to mobile money users in Lagos State and qualitative data via key informant interviews with regulators and industry experts. Descriptive statistics, Chi-Square tests, correlation, regression analysis, and Structural Equation Modeling (SEM) were employed for data analysis. The findings reveal a significant positive impact of governance practices on both consumer trust and consumer protection. The correlation analysis showed a strong positive relationship between Governance Practices and Consumer Trust (r = 0.884) and between Governance Practices and Consumer Protection (r = 0.941). Regression analysis further indicated that Governance Practices explained a substantial variance in Consumer Trust (R² = 0.781, p < 0.001) and Consumer Protection (R² = 0.885, p < 0.001), with significant positive regression coefficients (0.7349 for Trust and 0.7892 for Protection). SEM results also supported the mediating role of effective regulatory frameworks and board oversight. The study highlights that although a majority of users express trust in mobile money services, a substantial percentage (45%) have experienced fraud, and a notable portion are dissatisfied with dispute resolution processes. The results underscore that strengthening governance structures, improving regulatory enforcement, enhancing transparency, and implementing effective dispute resolution mechanisms are crucial for fostering consumer confidence and safeguarding users within the Nigerian mobile money ecosystem, particularly concerning POS transactions.