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Tag: Financial Inclusion

  • FG targets $1trn economy by 2030 via financial inclusion

    FG targets $1trn economy by 2030 via financial inclusion

    The Federal Government says it is putting sustainable mechanisms in place to build a $1 trillion economy by 2030 through financial inclusion.

    Sen. Ibrahim Hadejia, Deputy Chief of Staff to the President, Office of the Vice President disclosed this on Thursday in Benin.

    Hadejia spoke at the 8th Annual National Conference of The Association of Mobile Money and Bank Agents in Nigeria (AMMBAN).

    Hadejia said that the mechanisms were expected to bridge the gap between the rich and the poor.

    He was represented by the Technical Advisor to the President on Economic and Financial Inclusion, Abubakar Zauro.

    Hadejia assured that the government was committed to pursuing economic and financial inclusion with all sector players to achieve its goals.

    “As we seek to achieve this milestone, financial inclusion is at the heart of our economic agenda.

    “This is ensuring that all Nigerians, regardless of location, gender, or socioeconomic status are not only included but also empowered in our financial system.

    “This has been made evident in the administration’s effort to boost access to credit for micro, small, medium, and nano enterprises (MSMSNE), and various other programmes.

    “These programmes are targeted at enhancing inclusive growth through economic and financial inclusion,” he said.

    Hadejia disclosed that a review of key financial inclusion data revealed that substantial progress had been made, with around 26 per cent of the adult population, primarily women, rural dwellers, and small business owners.

    “As we work toward our 2030 economic goal, it is critical that we focus on narrowing these gaps.

    “This is where Neighborhood Financial Inclusion Centers (NFIC) play a pivotal role at providing a one-stop shop for financial services in excluded communities.

    “Through proactive partnerships with government and financial institutions, these centres will address both the physical and digital barriers that prevent millions of Nigerians from accessing essential financial services especially amongst the economically poor to improve their resilience against economic shocks,” he said.

    He called for a collaborative approach by all key players to presents a better chance to improve the adoption of innovative products and services to serve the people.

    In his goodwill message, Edo Governor, Godwin Obaseki, noted that AMMBAN played vital role in promoting financial inclusion, as it bridged the gap in financial accessibility, and drive economic growth in Nigeria.

    Obaseki, represented by the Permanent Secretary, Ministry of Finance, Mr Bernard Aigbe, commended the association for providing efficient and innovative financial services to underserved communities.

    The governor disclosed that his administration had created an environment conducive for businesses to thrive, promoting economic growth, and improving the lives of citizens.

    Also speaking, Philip Ikeazor, Deputy Governor, Central Bank of Nigeria (CBN), described financial inclusion as more than a policy goal, but a pathway to economic empowerment, poverty reduction, and sustainable development.

    He noted, however, that in spite of the progress in urban areas, rural regions continued to lag behind in financial inclusion.

    “As we move forward, we must ensure that no one is left behind. Together, we can create a future where every Nigerian has access to the financial tools and services they need to thrive,” he said.

    Earlier in his welcome address, National President of the association, Sarafadeen Fasasi, noted that the conference was unique as it was meant to match data on access to financial inclusion with actions.

    Fasasi added that the conference also provided opportunity for all participants to know what actions were being taken by all financial inclusion stakeholders.

    “As at the last EFinA report in 2023, financial inclusion was at 64 per cent but on the ground, over 300 local government areas in Nigeria are without bank branches (AMMBAN Survey, 2024).”

    “AMMBAN introduced a one-stop shop for financial services, offering NIN, BVN, account opening, card issuance, Sim registration, savings, credit insurance etc, across the excluded local government areas,” he said.

    According to him, data showed that Nigerian banks lost N42.68 billion to fraud in in the second quarter of 2024, and most were traced to agent locations through the use of stolen cards or phones, fake alerts, ransom cashout.

    To combat that, he said his association introduced an automated verifiable identity card for agents and launched a joint Task Force (JTF) in conjunction with the office of the Inspector-General of Police and other security agencies.

  • Robust FinTech critical for deepening financial inclusion in Nigeria – Maida

    Robust FinTech critical for deepening financial inclusion in Nigeria – Maida

    The Executive Vice Chairman and Chief Executive officer (EVC/CEO) of the Nigeria Communications Commission (NCC), Dr. Aminu Maida, has described the Financial Technology (FinTech) industry as a critical driver of financial inclusion of Nigerian citizens living in the underserved and unserved communities across the country.

    Dr.  Maida made this known in his keynote address at the 2023 edition of the annual Nigeria Information Technology Reporters Association (NITRA) FinTech Forum which focused on, “Harnessing Nigeria’s Fintech Potential: Challenges and Opportunities” and took place in Lagos recently.

    The EVC, who was represented at the event by the Controller of NCC Lagos Zonal Office, Mr Henry Ojiokpota, stated that the theme of the forum was suitable at this time for a discourse about the financial industry given the significant rise in digital financial services across the nation.

    The EVC said Fintech is revolutionizing Nigeria’s financial ecosystem as it represents a positive disruption to the conventional financial system. Maida stated that financial technology’s emergence to leverage technology to enhance financial services such as mobile banking, borrowing, investment, and cryptocurrency, comes as an enhancer and enabler of business and other opportunities in the sphere of innovation, job creation and investment that further stimulates economic growth.

    The EVC stated that fintech applications such as robo-advisors, payment apps, peer-to-peer (P2P) lending apps, investment apps, and crypto apps, among others, create business opportunities for individuals. He also stated that the adoption of these Fintech applications for socioeconomic gains by the youth, who account for 70 per cent of Nigeria’s population, will add value to the economy.

    Maida recalled recent industry statistics citing active subscriptions across mobile networks in Nigeria, which hit 220.7 million in August 2023, to demonstrate that the Nigerian Fintech ecosystem can offer an array of financial services to telecom subscribers.

    He said the Commission will continue to expand and enhance telecommunications infrastructure to enable robust Fintech services, and address consumer concerns, and regulatory challenges in the sector because the optimal utilization of digital technologies will enhance the provision of financial services to rural communities and underserved segments of the population through leveraging of high mobile phone penetration in Nigeria.

    “Therefore, Fintech has the potential to deepen the existing payment and financial system infrastructure to reach unserved and underserved areas and further stimulate economic growth”, Maida said.

    He said the Commission has begun implementing new strategies to meet the new target of 70 per cent Broadband penetration by the year 2025 as contained in the Nigerian National Broadband Plan 2020-2025 and the blueprint released by the Honourable Minister for accelerating the growth of the digital economy sector through technology.

    The EVC said these policies and strategies have huge implications for enhancing derivable benefits of the Fintech industry as well as significantly and positively impacting Nigeria’s goals on financial inclusion and the digital economy at large.

    The NCC boss promised that the Commission will continue to support the Fintech industry in harnessing its enormous potential and will not rest on its oars in its strides to address the challenges in the sector, including improving the provision of secured infrastructure that support the delivery of digital financial services in efficient ways. He also reiterated the Commission’s focus on maintaining minimum standards in Quality of Service (QOS) to ensure uninterrupted connectivity to enhance sectoral contribution to the economy.

    The EVC stated that the Commission, in support of its vision in this sphere, has implemented a Memorandum of Understanding with CBN on boosting payment systems and financial inclusion, which is in line with the Nigeria Payments System Vision 2025. He also informed that NCC will continue to play an important role in harnessing the potential of Fintech through maximum support for Fintech policies, enforcing regulations, and strengthening collaborations with relevant authorities.

  • Financial inclusion: We will attain 85% target – CBN Gov, Emefiele

    Financial inclusion: We will attain 85% target – CBN Gov, Emefiele

    The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has expressed optimism that the Bank will achieve the 85% financial inclusion rate target in Nigeria, within a very short period from its current rate of slightly below 70%.

    Mr. Emefiele disclosed this in Abuja at the Bank’s head Office in Abuja, while playing host to a delegation of Executive Directors from the Bank of Uganda, who were on an experience sharing tour of the CBN’s Central Bank Digital Currency (CBDC) project on Monday, May 9, 2022. He noted that the CBN was committed to accelerating the rate at which those who were financially excluded could come into the formal banking sector.

    He expressed satisfaction that the country’s Central Bank Digital Currency, the eNaira, had recorded some level of success judging by the rate of integration and security features, adding that the CBDC will enhance the relationship between mobile banking and e-business and speed up the rate of financial inclusion.

    The CBN Governor also noted that the interest the novel eNaira was attracting from other countries and multinational bodies such as the International Monetary Fund (IMF) and the World Bank, underscored the level and quality of work the CBN had put into the project. Although he noted that Nigeria, being the first country in Africa to launch its CBDC, was a case study to other climes, he said the country was treading cautiously to ensure it sustains the successes recorded thus far.

    While equally stressing that the country had deepened its payment system infrastructure, which he noted was ranked among the best in the world, Mr. Emefiele paid tribute to his predecessor in office, Sanusi Lamido Sanusi, for laying the foundation upon which the country’s current payments system was built. He recalled that Sanusi, as then CBN Governor, appointment him chairman of the sub-committee of the of the Bankers’ Committee to lead the payments system drive in 2012, adding that the move paved the way for innovative ideas that eventually led to the creation of the eNaira.

    He therefore charged the Executive Directors (Deputy Governors equivalent) of the Bank of Uganda to strive to strengthen their country’s payment system, noting that a strong payment system remained the bedrock for the successful take-off of a Central Bank Digital Currency (CBDC).

    The delegation from the Bank of Uganda (BoU) comprised; Executive Director and Economic Adviser to the Governor, BoU, Dr. Jacob Opolot; the Executive Director, Information Technology, BoU, Mr. Richard Mayebo; Executive Director, Finance, BoU, Mr. Richard Byarugaba; and the Ag. Director, National Payments Systems Department, Mr. Andrew Kawere.

  • Financial inclusion: Kaduna ICT hub partners London’s Coinfirm

    Financial inclusion: Kaduna ICT hub partners London’s Coinfirm

    A London-based Coinfirm and KAD ICT Hub, a Kaduna State-based ICT company say they are partnering to launch Africa Blockchain Lab, a trusted all-in-one cryptocurrency company to increase financial inclusion across Africa.

    KAD ICT Hub, a partnership between Kaduna State Government and Telemax Engineering Services Ltd., was established in 2017.

    It brings together companies such as Coders4Africa, Draper Dark Flow and Gebeya, first-of-a-kind centre that incubates world-class technologies, talent and innovation.

    In addition to housing software start-ups, it runs training courses with focus on girls’ education.

    Mr Grant Blaisdell, Co-founder of Coinfirm, said on Thursday in Kaduan that the initiative would bring world-class blockchain companies working on solutions for African markets.

    Blaisdell, who defined cryptocurrency as a digital currency designed to work as a medium of exchange, added that the lab was the first-of-its-kind on the African continent.

    He said the lab would provide a home to companies and entrepreneurs building blockchain-based products and services relevant to African economies.

    According to him, the Africa Blockchain Lab is a joint venture between Coinfirm, and KAD ICT Hub, a state-backed IT innovation hub.

    “The first tranche of Lab tenants include financial inclusion start-up Kora, a blockchain-powered marketplace, infrastructure, and digital payments solution for inclusive financial systems that connect people, communities and capital.

    “One of the first initiatives to be launched in the lab will be the Anti-Money Laundering (AML) Token Network and the Coinfirm AML and Know Your Customer (KYC) Platform.

    “The AMLT Network is the first global system that provides opportunity to report online scams, fraud and cybercrime related to cryptocurrency addresses and earn token from Coinfirm.

    “This provides a mechanism for victims to report and provide evidence that can help fight against bad actors in the internet space,’’ Blaisdell said in a statement.

    He said that Coinfirm, a global blockchain company provided bank-grade AML/KYC compliance to blockchain and crypto companies.

    He also said Coinfirm had already successfully built leading blockchain solutions, the largest structured blockchain database and coverage and the first blockchain lab for Central Europe.

    “Together with KAD ICT Hub we hope to bring transformative blockchain-based solutions to African markets.

    “With the Coinfirm’s AML/KYC Platform and AMLT Network, we will provide opportunities for African entrepreneurs working in one of the most exciting and disruptive fields today.

    “While cryptocurrencies provide an alternative to fiat currencies, blockchains are decentralised, immutable and transparent ledgers, free from central control.

    “This means both are potentially transformative technologies in the face of authoritarian governments, corruption and economic exclusion,’’ Blaisdell said.

    Malam Yusuf Bashir, Chief Executive Officer and Co-Founder of KAD ICT Hub, said that the Nigerian economy was the largest economy in Africa, adding that the transformative potential of blockchain was enormous.

    “I am confident that working with Coinfirm, we can provide the testbed and support for today’s leading African blockchain companies, giving them the opportunity to become global leaders.

    “KAD ICT Hub has been working with Coinfirm’s blockchain-powered data provenance document verification platform, Trudatum, which was recently integrated by the largest bank in Central Europe.

    “In Nigeria, Trudatum is being proposed as a solution to government and universities as a more effective way of securing documents,’’ Bashir said.