Central Bank of Nigeria: Financial Inclusion Newsletter November 2017, Volume 2, Issue 4

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1. United Nations Secretary General ’s Special Advocate for Inclusive Finance for Development tasks stakeholders to deepen financial inclusion for economic growth in Nigeria Inside this issue: Cover Story 1-3 National Financial Inclusion Governing Committees holds its statutory meetings 4-5 Spotlight: Mid-term Review and Refresh of the National Financial Inclusion Strategy 6-7 Special Interventions 8 Digital Financial Inclu- 9 Stakeholder Activities Photorama HRM Queen Máxima of Netherlands with the Vice President of Nigeria, Prof. Yemi Osinbajo during her visit to Nigeria in November, 2017 10-11 The United Nations Secretary General’s Special an option for us, it is absolutely important for 12 Advocate on Inclusive Finance for Development us and our economy. The convergence we (UNSGSA), Queen Máxima of the Netherlands has are having in the Social Investment Proreaffirmed her support for Financial Inclusion in grammes of this administration, as well as in Nigeria. agriculture, with smallholder farmers, is an The Capital Market 14 indication of our commitment”. Queen Máxima, who was at the launch of the Strategic Engagements 15 National Financial Inclusion strategy in 2012, The Queen in her remarks, commended the returned to Nigeria in November, 2017 as part of administration’s Economic Growth and ReInternational Financial 16-17 her working visit for global advocacy on financial covery Plan (EGRP), noting that financial inInclusion News inclusion. clusion was a key element to support the economic plan. She highlighted that an effiNigerian Financial In- 18 During her visit, the Queen had an high-level cient payment system will benefit all Nigericlusion News meeting with the Vice President of the Federal ans including government and individuals, Republic of Nigeria, Prof. Yemi Osinbajo in the stating that social safety programmes and Article: CBN issues 19 company of Mr Robert Petri, the Dutch Ambassa- credit enhancement schemes could be chanRegulatory Framework dor-designate to Nigeria and the United Nations neled through it. for Bank Verification Resident Representative to Nigeria, Mr. Edwards Number (BVN) OperaKallon. Other members of her delegation included While calling for improved collaboration tions and Watch-List for The World Bank, Bill & Melinda Gates Foundation amongst relevant Financial Inclusion stake(BMGF) and the Consultative Group to Assist the holders, the Queen stressed the need for a revision of the National Financial Inclusion Contact details 20 Poor (CGAP). Strategy and for the deployment of mobile At a press conference following the visit, the Vice money in Nigeria.■ President stated that “Financial inclusion is not Financial Literacy 13 Source: http://africa-online.com/2017/11/02/nigeria-queen-of-netherlands-visits-vice-president-advocates-financial-inclusion/ http://statehouse.gov.ng/news/press-release-vp-osinbajo-meets-with-queen-maxima-of-netherlands/ Financial Inclusion Status as at December 2016 Source: Enhancing Financial Innovation & Access (EFInA)
2. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER United Nations Secretary General’s Special Advocate for Inclusive Finance for Development tasks stakeholders to deepen financial inclusion for economic growth in Nigeria ...commends Lagos State Health Policy during a courtesy call to Governor Ambode As part of the UNSGSA’s visit to Nigeria, Her Majesty, Queen Máxima paid a courtesy call to the Lagos State Governor, Mr Akinwunmi Ambode. During the visit, the Queen lauded the efforts of the Lagos State Government to improve service delivery especially as it concerned access to affordable healthcare. In response, the Governor stated that the State had enabling laws for Health Insurance Scheme, targeted at the most-needy and the poor that cannot afford healthcare services. He also noted that the initiative was premised on a sense of inclusion which is one of the basic principles of good governance. Queen Máxima with Governor Akinwunmi Ambode, Ambassador Petri and and the United Nations Resident Representative to Nigeria On financial inclusion, Governor Ambode highlighted that the informal sector accounted for about 80 per cent of Lagos population, a development he said prompted his administration to set up N25billion Employment Trust Fund (ETF) to serve as an instrument to grant members of the sector access to finance.■ Source: https://www.thisdaylive.com/index.php/2017/11/01/queen-of-netherlands-visits-ambode-lauds-lasgs-health-policy/ Queen Máxima visits the Subol Hospital in Lagos, spends time with patients and staff Prior to the visit to the Lagos State Government, Queen Máxima visited the Subol hospital in Lagos where she spent some time with young patients and their parents. The staff of the hospital provided the Queen with an overview of the PharmAccess Foundation and its focus on broadened access to healthcare finance and delivery. PharmAccess Foundation is an international non-profit organization with a digital agenda dedicated to connecting people in sub– Saharan Africa to better healthcare care.■ UNSGSA Queen Máxima of Netherlands with children at the Subol Hospital in Lagos Source: http://www.dailymail.co.uk/femail/article-5035203/Queen-Máxima-visits-Subol-Hospital-Nigeria.html UNSGSA applauds NCC on it’s collaboration on National Financial Inclusion Strategy The UNSGSA, during her visit to Nigerian Communications Commissions (NCC) applauded the Commission on its numerous regulatory strides towards achieving a greater safe, sound and sustainable financial inclusion in Nigeria, noting in particular, the robust regulation of the telecommunication services and its collaboration with various stakeholders including the Central Bank of Nigeria (CBN). Queen Máxima and the Executive Vice Chairman of NCC, Professor Umar Danbatta and some Management Staff During the meeting, the Executive Vice Chairman of the Commission, Professor Umar Danbatta disclosed that the commission had recently signed a Memorandum of Understanding with the CBN/NCC Joint Technical Committee on Mobile Money to ensure that Mobile Network Operators (MNO) register Special Purpose Vehicles that would enable them become Mobile Money Operators to further deepen financial inclusion in the country.■ https://www.ncc.gov.ng/stakeholder/media-public/news-headlines/276-queen-maxima-of-the-netherlands-pays-visit-to-the-ncc 2
3. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER United Nations Secretary General’s Special Advocate for Inclusive Finance for Development tasks stakeholders to deepen financial inclusion for economic growth in Nigeria UNSGSA visits the Central Bank of Nigeria, assures of international support for financial inclusion The UN Special Advocate for Inclusive Finance for Development (UNSGSA), Queen of The Netherlands, Máxima Willem-Alexander also held a meeting with the Central Bank of Nigeria (CBN) on November 1st, 2017. The CBN leads the implementation of the National Financial Inclusion Strategy, working with several stakeholders. During the visit, the Queen and the Governor, Central Bank of Nigeria held discussions on the importance of Mobile Money and Digital Financial Services to drive financial inclusion in Nigeria and stressed the need to develop and implement strategies on its usage to accelerate access to finance for the unbanked. The UNSGSA also conveyed the United Nations commitment to support Nigeria to reduce the number of financially excluded persons from 41.6 per cent to 20 per cent being targeted by the year 2020. The Governor, Central Bank of Nigeria in his remarks stated that the Bank had made significant progress on financial inclusion since the Maya declaration in 2011. He further noted that in order to drive the financial ex- Queen Máxima, Governor Godwin Emefiele and the Dutch Ambassador to Nigeria, Mr. Robert Petri during the courtesy visit to CBN clusion rate down to 20% by 2020, the prioritization of interventions like Digital Financial Services programmes was key. Lastly, he noted that he was optimistic about the future, noting that Nigeria will continue to strive to achieve its financial inclusion targets■ https://guardian.ng/business-services/un-financial-inclusion-advocate-queen-maxima-assures-cbn-of-support/ UNSGSA delivers Keynote Address at EFInA’s Financial Inclusion Summit stakeholders to the table and promote discussions centered on driving policies to improve financial inclusion in the country. During the workshop, the Chair of the EFInA board, Ms. Modupe Ladipo provided participants with insights into the recurring challenges and barriers to inclusion. She stated that income levels remained low while observing that the Northern part of the country remained particularly disadvantaged in terms of access to financial products and services. L-R Chairman Senate Committee on Banking & Financial Insti- tutions, Senator Rafiu Ibrahim, Chair, EFInA’s Board, Ms. Modupe Ladipo, Senior Economic Advisor, Open Society Foundations (OSF), Dr. Obiageli ‘Oby’ Ezekwesili; United Nations Secretary-General’s Special Advocate on Inclusive Finance for Development, Her Majesty Queen Máxima of the Netherlands; Emir of Kano, Lamido Sanusi Lamido at the EFInA Financial Inclusion Workshop in Abuja Enhancing Financial Innovation and Access (EFInA), a leading financial sector development organization working to improve financial inclusion Nigeria held a financial inclusion workshop in November 2017. The workshop which was themed ‘The role of Government n Driving Financial Inclusion in Nigeria’ was one of many similar events organized by EFInA to bring The workshop attracted high level participation including the United Nations Secretary General’s Special Advocate for inclusive finance, Her Majesty Queen Máxima of the Netherlands who delivered the Keynote Address at the Summit. In her address; The Queen applauded Nigeria for revising the National Financial Inclusion Strategy after five (5) years of implementation, urging stakeholders to recognize the importance of leveraging technology and expanding mobile money to address the financial inclusion gap. The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, represented by the Director, Development Finance Department in his own remarks highlighted that there were critical issues that needed to be addressed to ensure financial inclusion in Nigeria and these include, low infrastructure in rural areas, low income, low saving culture, high unemployment and cultural & religious barriers. Also in attendance at the workshop was the Emir of Kano and former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi.■ Source: https://www.brandcrunch.com.ng/2017/11/09/efina-summit-financial-inclusion-nigeria/ 3
4. FI N A NC IA L I NC LU SI O N N E W SL E TT ER N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 National Financial Inclusion Governing Committee holds its Statutory Meetings 11th Financial Inclusion Working Group Meetings The four Financial Inclusion Working Groups held their 11th meeting at the International Training Institute, Abuja on 20th September 2017. The major highlights of the meetings included an update on execution of work streams earmarked for 2017 for the respective agencies and key resolutions from the previous meeting. Highlights from the meetings are reported below: Financial Inclusion Products Working Group (FIPWG) 1. Financial Products and Strategies to reduce exclusion rates in the North The working group highlighted the need for renewed focus on Non-Interest financial products and services using existing licensed non-interest financial institutions and windows and National Insurance Commission’s (NAICOM) Takaful Insurance Guidelines. 2. Harmonization and scaling up of issuance of National Identification Number and cards The working group reported that over 22 million National Identification Numbers have been issued through collaborative support from stakeholders. 3. Nigerian Social Insurance Trust Fund’s (NSITF) Employee Compensation Scheme (ECS) to enhance financial inclusion NSITF currently had over 6 million employees registered on its Employee Compensation Scheme (ECS). 4. Proposed Establishment of National Cooperative Development Fund to support financial service delivery to members A work plan was being drafted by Cooperative Finance Agency of Nigeria (CFAN) on a fund that would support financial inclusion for members.■ Financial Inclusion Channels Working Group (FICWG) 1. Implementation of the Shared Agent Network  Licensing of super-agents: 1.Financial Education Curriculum Development:  The CBN has granted Approval-in-Principle to a 3rd superagent  NIPOST’s role in agent banking  NIPOST was already using 22 post offices for agent banking in partnership with 3 MFBs .  High USSD cost for MMOs: A study was ongoing for the review of USSD cost for the Mobile Money Operators to make it more appropriate.   3. Develop and publish Bancassurance Guidelines NAICOM has approved and published guidelines for the insurance sector and Central Bank of Nigeria for the banking sector to increase uptake. 4. Develop distribution channels for the capital market. A proposed specification document of distribution channels for capital market had been provided to Security and Exchange Commission for reviewby Fund Managers Association of Nigeria who had also agreed with Association of Stockbroking Houses of Nigeria (ASHON) and Nigerian Stock Exchange (NSE) on the terms of the specification document. ■ Financial Education Curriculum Training Material Manual and Teachers’ Guide have been developed. Modalities to commence pilot implementation of the curriculum was ongoing with the Nigerian Educational Research and Development Council (NERDC). 2. Financial Inclusion Peer Educator Programme 2. Roll-out the Cashless Policy A study of the impact of Cashless Policy had commenced it and expected to be completed by end of 2017. Special Interventions Working Group (FISIWG) Financial Literacy Working Group (FLWG) A Total of 992 ‘Batch A’ National Youth Corps members had been trained in 12 pilot states (2 streams). There were ongoing plans to train “Batch B’ Corps members in October/November, 2017 (estimated target is 1,000 corps members). 3. Mass Sensitization and Awareness   CBN Fair concluded in 32 states of the Federation. Niger, FCT and while 2 South South states would be completed before the end of the year. Securities and Exchange Commission conducted mass sensitization in Bwari Area Council for 200 participants. To enable them understand capital market product and how to use them.■ 1. .Scaling up disbursement of 2% Micro, Small & Medium Development Fund (MSMEDF) to Persons with Disabilities (PWD)  750 applications for the PWD have been received and are being processed.  A flag-off of the disbursement by the Vice President would take place at the National Stakeholders Conference on Financial Literacy Day . 2. Women’s access to finance.  CBN’s MSMEDF —60% Women Component 219,369 women had accessed loans from the Fund and the Collateral requirement had been reduced from 75% to 30% of the loan required.  Government Enterprise and Empowerment Programme (GEEP) A total of 19,704 women applied for the GEEP through the Federal Ministry of Women Affairs and Social Development (FMWASD). Applications were being processed by Bank of Industry (BoI). 3.Youth Peer Educator Programme (YPEP) The second phase training of volunteers on the YPEP was held in July in 12 pilot states with 468 volunteers . A total of 968 volunteers had been trained so far.■ 4
5. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER National Financial Inclusion Governing Committee holds its Statutory Meetings 11th National Financial Inclusion Technical Committee Meeting L-R: Dr. Aisha Mahmood, Special Adviser to CBN Governor on Sustainable Banking, Ag. Chairman, Dr. M. A Olaitan and Observer, Mr. Robert Petri - Dutch Ambassador to Nigeria. The 11th meeting of the National Financial Inclusion Technical Committee took place on Thursday, September 21, 2017 under the chairmanship of Dr. M. A. Olaitan, Director, Development Finance Department, Central Bank of Nigeria. Members of the Inter-Agency Taskforce for the Review of the National Financial Inclusion Strategy (NFIS) The Dutch Ambassador to Nigeria, Mr. Robert Petri attended the inauguration as an Observer and delivered a brief Goodwill message from the United Nations Secretary General’s Special Advo cate for inclusive finance for development (UNSGSA), Her Majesty Queen Máxima of the Netherlands. In attendance were the Netherland’s Ambassador to Nigeria, Robert Petri, Dalberg Global Development Advisors, Consultants hired to handle the review of the NFIS and Directors/ equivalents from member institutions. Educator Programme for Financial Inclusion because of its high impact on grassroots financial literacy and inclusion. That the disbursement of the Micro Small & Medium Enterprise Development Fund (MSMDEF) to Persons with Disabilities (PwD) entrepreneurs remained low due to several operational issues, hence to consider a specific guideline for the segment. The Head, Financial Inclusion Secretariat (FIS) and Secretary to the Committee, Mrs. Akin-Fadeyi Temitope provided an update on some of the critical  That the compliance level of financial institutions to the legacy circular that Issues raised for the Steering Commitcalled for the provision of flexible The meeting was conducted in three tee’s attention from the 10th Technical access point for PWDs access to meeting and also highlighted resoluparts, namely: financial services should be revisittions from the 11th meeting;  Inauguration of the Inter-agency ed. Taskforce for the Review of the  That the Steering Committee ap- At the end of the meeting, the Secretary proved the 2016 Annual Report on National Financial Inclusion Stratthe (NFIS) implementation for pub- reported that the 2017 targets for the egy (NFIS) product indicators of the NFIS were not lication. achieved as at June 2017 although pro Proceedings of the 11th National Financial Inclusion Technical  That CBN examined and approved gress was made a the number of areas. extension of the deadline for Other Committee Meeting The Ag. Chairman charged members to Financial Institutions to capture address the issues raised and ensure  Brief Working Session for InterBank Verification Number (BVN) of that progress updates are provided to the agency taskforce members. all customers till December 31, Secretariat accordingly. He rounded up 2017. the meeting with a call on the InterThe Inauguration of the Inter-agency  That members fulfill their financial agency Taskforce members to bring their taskforce was highpoint of the 11th obligations towards the Financial various expertise to bear in the review meeting. The taskforce was setup to Literacy Curriculum Development and refresh of the National Financial Inwork with the Financial Inclusion Secexercise. (phase 2). clusion Strategy.■ retariat and the Consultants, providing input into the review and refresh  exercise for the NFIS. That members consider and support the funding for the NYSC Peer 5
6. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER SPOTLIGHT Mid-term Review and Refresh of the National Financial Inclusion Strategy (NFIS) The Central Bank of Nigeria in collaboration with stakeholders have commenced the review of the National Financial Inclusion Strategy (NFIS) which was launched on October 23, 2012 with a target to reduce the adult financial exclusion rate from 46.3% in 2010 (baseline year) to 20% in 2020 (target year). The strategy provides the blueprint for achieving easy access to a broad range of formal financial services that meet the needs of adult Nigerians at an affordable cost. The ongoing review is in fulfillment of the provision in the strategy document a mid-term review to evaluate the impact and lessons learned, identify critical/new barriers to financial inclusion and develop a road map to address them and improve the access level to 80% of adult Nigerians should be conducted halfway into the implementation. growth, deterioration in security situation and increased regulation supporting branchless banking. Other reasons that called for the review Dalberg Global Development Adviinclude: sors, working The Financial Inclu Slow-paced progress in achieving sion Secretariat is anchoring the targets set for product, channel exercise, with kind support from the Bill & Melinda Gates Foundaand enabler indicators. tion.  Realization of some focus areas To ensure effective conduct of the not captured in the NFIS; digital financial inclusion, Women, disad- exercise, an Inter-agency Taskforce consisting of representatives vantaged groups, MSME and geofrom relevant Ministries, Departgraphical variations ments and Agencies, industry apex  Inadequate approach to Monitoring associations and departments & Evaluation mechanism specified from the Central Bank of Nigeria in the NFIS . was established to facilitate stake Environmental changes in the NFIS holder engagements and technical outcomes: decreased economic inputs. The Strategy review featured some of the following insights: Source: Mid-Term Review Report of the National Financial Inclusion Strategy, Dalberg (2017) 6
7. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER SPOTLIGHT Mid-term Review and Refresh of the National Financial Inclusion Strategy (NFIS) To achieve it’s financial inclusion goals, Nigeria needs to build foundation, unlock high potential models and then broaden and deepen inclusion Strategy Refresh: The NFIS Refresh phase commenced will commence in January, 2018. In this phase, a new  NFIS will be developed informed by robust analysis, stakeholder feedback and global best practices. important themes are addressed with adequate time and resources. The refreshed strategy will be built  around the priority barriers identified in the mid-term review phase and guided by implementation principles, based on lessons learnt since incep-  tion of the NFIS in 2012. The refreshed strategy will seek to follow were enumerated as follows;  Prioritization: to ensure the most  Adaptability: designed to adapt to shocks and changes in the economic  context. Alignment to Stakeholder interests: Identified barriers need to have prac-  tical solutions that stakeholders can address. Openness to innovation: High potential approaches must be given priority and the NFIS should be open to  innovation. Inclusion of Global best practices: The strategy should be based on adaptable global best practices. Leadership engagement: High levels of leadership are necessary to unlock critical path items. Convening power: Stakeholders must come together to address critical issues and proffer solutions. Clear ownership and accountability: Roles and responsibilities must be clearly defined. The Refresh phase of the exercise will focus extensively on how to produce the best financial inclusion outcome for Nigeria.■ Source: Mid-Term Review Report of the National Financial Inclusion Strategy, Dalberg (2017) 7
8. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER SPECIAL INTERVENTIONS TheseAbilities Foundation to promote better sense of dignity and mind set change for Persons with Disabilities (PWDs) the society and creating equal opportunities for them. During the event which also featured public presentation of the 2016 Disability Report on Inclusion, the Vice President stated that the high poverty levels in the country led to the increased level of corruption in the system. Vice President, Professor Yemi Osinbajo flanked by participants at the re-launch of the 2016 Disability Report. The Vice President of the Federal Republic of Nigeria, Professor Yemi Osinbajo has re-launched the Theseabilities Foundation, a non-governmental Organization with activities centered around integrating People with Disabilities properly into The Executive Director of the Foundation, Mr. Adetoye Abioye informed participants that the foundation was working with the Central Bank of Nigeria on how to improve access to finance for PWDs in the country. Speaking also at the re-launch, the Chairman of the Advisory Board of the Foundation paid homage to the late Founder of the Organization Mr. Adeboye Abioye stating that the ceremony and public presentation of the 2016 Disability Report was in memory of the late Founder.■ Source: http://onobello.com/vice-president-yemi-osinbajo-attends-the-re-launch-of-theseabilities-foundation-in-lagos/ 360,000 youths to get jobs through new Accelerated Agricultural Development Scheme. The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele has declared that over 360,000 jobs will be created for Nigerian youths through the Accelerated Agricultural Development Scheme (AADS). Speaking at a stakeholder meeting on the operational framework of the scheme, Mr. Emefiele stated that it was conceptualized to provide an ecosystem to support unemployed youth between the ages of 18 and 35 to be gainfully employed in agriculture. The Accelerated Agricultural Development Scheme was launched by the Central Bank of Nigeria to create economies of scale for farming on contiguous lands in all the states of the federation. The Scheme aims to provide financing to youth at single digit interest rates, while State Governors would be expected to provide contiguous arable land as well as basic infrastructure, training and mentorship for the beneficiaries. During the launching Mr. Emefiele stated that in addition to providing financing to farmers, the AADS will support the adoption of modernized farming practices. He went on to note that beneficiaries will be expected to have valid Bank Verification Numbers (BVN) and will be registered on the National Collateral Registry. The Honorable Minister of Agriculture and Rural Development, Mr. Audu Ogbeh also threw the weight of the Ministry behind the scheme, stating that the Ministry would provide technical support on the project, including a team of experts on crops, soil testing . He added that they would be fully involved in the process of clearing the land for purposes of cultivation. It is expected that a minimum of 10,000 youths per state who are interested in participating along the value chain of profitable agricultural ventures would be employed and trained.■ Source: https://www.premiumtimesng.com/business/245343-360000-nigerian-youth-get-jobs-new-agric-scheme-aads-emefiele.html 8
9. N O ve mb e r 2 0 17 , Vo lu me 2 , I ss ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER DIGITAL FINANCIAL INCLUSION UMS International in collaboration with partners organizes New Age Banking Summit technology (Fintech) to create   better, faster and cheaper financial services for the un- and multi-pronged solutions to tackle incidences of social en- banked population. gineering attacks and future A call for regulators to imple- threats in the digital banking era. ment a holistic framework that would regulate the areas of Fintech and at the same time, Head, Financial Inclusion Secretariat, Mrs. Temitope Akin-Fadeyi Moderating a session at the Summit The New Age Banking Summit – Nigeria Edition, organized by UMS international in collaboration and partnership with multinational play-  The need to adopt innovative  The importance of big data in understanding customer be- balance innovation and regula- havior to drive delivery of tar- tions to create a competitive market. geted financial services.  A call to financial Service pro- A call for banks to simplify the viders to take into cognizance ers in the digital banking space held on the login process and enhance se- 26th and 27th September, 2017 at the Inter- curity while improving user ex- the evolving market needs and inclusive products that would continental Hotel, Lagos. perience i.e replacing pass- The Summit brought together thought leaders, stakeholders and decision makers form leading words with voice biometrics, cater for different population segments in the country.■ fingerprints and iris scans banking and financial institutes to discuss the latest technology trends, challenges and innovations in the digital banking era. Nigeria Information Technology Reporters Association (NITRA) holds 3rd Quarterly Forum in Lagos The programme focused on “The initiatives of the Vision 2020 goal of the Central Bank of Nigeria. The Head, Financial Inclusion Secretariat, Mrs Akin-Fadeyi Temitope moderated the Session on “The Role of Digital Banking in Powering the Growth of Financial Inclusion” The two-day event began with an inaugural address centered on “Keeping Pace with Financial Innovation” by Mr. Musa Jimoh, Deputy Director and Head of the Payments System and Policy Oversight Division, Central Bank of Nigeria. This was followed by an inaugural panel discussion titled “Determining the Way Forward for the Digital Banking Landscape in Nigeria. Several presentations were made featuring technology evolution and digital trends in banking. At the end of the summit, the following key takeaways and perspectives were flagged as recommendation:  A call for nation-wide adoption of financial Participants at the NITRA’s 3rd Quarterly Forum in Lagos The Nigeria Information Technology Reporters Association (NITRA) held its 3rd Quarterly Seminar on October 13, 2017 at the Renaissance Hotel in Lagos. The forum was themed “ Digital Payment: Prospects and Challenges of Financially Inclusive Nigeria”. In attendance were stakeholders from the banking, telecommunication and media industry. The forum brought to the fore, the need for banks to collaborate with FinTech companies to drive financial inclusion. Mr Tunde Ogunbade, CEO Global Accelerex while delivering his key note paper stressed the need for digital financial services to be pushed to all Nigerians with mobile devices, explaining that it will further reduce the number of unbanked adult Nigerians. He also stated that with the presence of Fintechs offering Digital payments, money will be managed effectively riding on new ways to save, make payments, access credit, or obtain insurance. According to him, the objective of financial inclusion should not be viewed as a national social responsibility but more as profitable business opportunity and enabler of development.■ Source: https://www.pressreader.com/nigeria/thisday /20171026/281659665291915 9
10. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER STAKEHOLDER ACTIVITIES Enugu State Hosts the 2017 National Cooperative Financing Agency of Nigeria (CFAN) Summit tion of Cooperative Credit Union of Nigeria (NACCUN) to CFAN. Participants were drawn from government agencies, regulatory institutions from across the states in the country. adult exclusion rate decreased from 46.3% in 2010 to 41.6% in 2016 and that the proportion of those in the formal sector increased from 36.3% to 58.4%. The theme of the summit was “A Veritable Tool to Drive Sustainable Inclusive Growth & Development.’’ He noted that low access density, financial literacy and apathy to serve the low income groups as well as lack of appropriate products suited to the needs of the excluded groups were challenges that need to be addressed. The President, CFAN, Mr. Bashorun Adebola Orolugbabge in his welcome address gave a brief background of CFAN, highlighting achievements and the challenges hindering its performance. The Cooperative Financing Agency of Nigeria (CFAN) held its 2017 summit from 2nd to 4th October, 2017 at Oaklands Hotel, Enugu, Enugu State. The Summit was the 3rd since the rebranding of National Associa- The Head, Strategy and Coordination Office of the Financial Inclusion Secretariat, Mr. Joseph A. A. Attah presented on the State of Financial Inclusion in Nigeria, noting that the Association of Mobile Money Agents in Nigeria holds 2nd Annual Conference At the end of the Summit, a communique was issued for reforming the Cooperative Financing Structures and agencies in Nigeria.■ NDIC organizes Financial Correspondence Association of Nigeria Workshop The Nigerian Deposit Insurance Corporation (NDIC) organized an Annual workshop for the Financial Correspondent Association of Nigeria (FICAN) and Business Editors on October, 2017. The theme of the workshop was “The Role of Nigerian Banking Sector: Opportunities, Challenges and Way forward”. President, AMMAN with his Executives and Mr. George Ogudu (Financial Inclusion Secretariat) and Dr. Olayinka David-West of the Lagos Business School. The Association of Mobile Money Agents in Nigeria (AMMAN) held its 2nd Annual Conference on November, 2017. The Conference brought together Agents, Aggregators, Operators, Regulators, Thought leaders and subjectmatter experts from across Nigeria to discuss both the challenges and opportunities of Digital Financial Services (DFS) ecosystem. The Director, Development Finance Department, Central Bank of Nigeria represented by S.F. Mohammed, presented a paper titled “Rebuilding Financial Infrastructure in the North East” while Dr. Garzali Muhammed of the Financial Inclusion Secretariat presented another paper titled “Financial Literacy in Nigeria: Opportunities and Challenges”.■ In his Welcome Address, the President of the Association, Mr. Victor Olojo, highlighted the need to re-evaluate the approach so far and gain insights on the newest trends in the digital financial markets. The Conference featured panel discussions which highlighted the key challenges faced by agents across the country including security, delayed funding, low profitability amongst others and solutions on how to overcome them. Mr. George Ogudu, Strategy Coordination Specialist of the Financial Inclusion Secretariat delivered the Keynote Address on Spurring Mobile Money and Agent Banking Activities: Opportunity Options for Financial Inclusion in Nigeria at the Conference.■ https://www.pressreader.com/nigeria/the-guardian-nigeria/20171205/282024737592004 Dr. Garzali Mohammed, Data Analyst of the Financial Inclusion Secretariat delivering a presentation during the workshop 10
11. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER STAKEHOLDER ACTIVITIES NIPOST Launches new Innovative and Game Changing Products on World Post Day To commemorate this year’s World post day celebration in Nigeria, the Nigerian Postal Service (NIPOST) organized an enlightening product launch event. The event took place at the Congress Hall, Transcorp Hilton Hotel, Maitama Abuja and the Central Bank of Nigeria (CBN) Financial Inclusion Secretariat (FIS) was duly represented by the Head, Financial Inclusion Secretariat, Mrs. Temitope Akin-Fadeyi and Miss Erezi Esiekpe, Strategy Coordination Officer. think outside the box, diversify and come up with innovative ideas to drive the change idea of the Nigerian Government. Mr. Adegbuyi also acknowledged the support gotten from the Federal Government and stated that if Nigeria was to meet the United Nations Sustainable Development Goals (SDGs), the postal infrastructure would be a key enabler of inclusive development and a platform for delivering public services. The World Post day is celebrated on October 9 every year on the anniversary of the establishment . It is the of the Universal Postal Union (UPU). The celebration began in 1969, at a UPU congress in Tokyo, Japan and since its inception, countries all over the world set aside that day to commemorate and highlight the importance of postal service in diverse ways. The Honorable Minister of Communications, Mr. Adebayo Shittu delivered the Welcome Address in which he stated that plans were underway to transform NIPOST into a revenue generating organization by promoting financial inclusion and community centres in all postal offices especially in rural areas. The Post Master General,/Chief Executive Officer (CEO) of NIPOST, Mr. Bisi Adegbuyi, delivered the opening address highlighting the need to The Minister went on to disclose that in the near future, postal offices would be used for egovernment activities (receipt of international passport, driver’s Post Master General, Mr. Bisi Adegbuyi delivering his Opening Address at the Ceremony. license) as NIPOST had 1,500 locations across the country . Some of the products launched by NIPOST during the World Post Day included:  International Postal System (IPS)  Qubit (Electronic stamp)  Electronic Money Order  Address Verification System (AVS)  Robust Post Youth Engagement Strategy introducing the mailboxes to every household.■ Source: http://onobello.com/vice-president-yemi-osinbajo-attends-the-re-launch-of-theseabilities-foundation-in-lagos/ Lagos Business School convenes Consultative Working Group on Digital Financial Services (DFS) The forum evaluated key public policy on digital financial services and financial inclusion with a view to identifying and agreeing on practical reforms in legislative and regulatory policies to better enhance financial inclusion in Nigeria. Some of the key policy and legal issues identified by participants included: Members of the consultative working group on Digital Financial Services The Sustainable and Inclusive Digital Financial Services Initiative, Lagos Business School (LBS) has conducted the 1st Consultative Working Groups on Digital Financial Services Policy and Regulation with the theme “Market-Enabling Digital Financial Services (DFS) Policy and Regulation”. The event which held on August 4 – 5, 2017 at Park-Inn Hotel, Abeokuta. Stakeholders at the event include Regulatory agencies, Ministries, Departments and Agencies (MDAs) and Apex associations, amongst others.  Lack of Identity Management System to facilitate KYC requirement for the unbanked.  Weak enforcement mechanisms to ensure compliance with extant policies, regulations and laws.  Insufficient regulatory oversight to curtail unduly high prices of services for consumers.  Low consumer awareness on DFS guidelines and laws.  Poor level of financial literacy by citizens. The Forum unanimously resolved that there was: i. Need for a single national identity mechanism that could be shared amongst government agencies; ii. Need to ensure consumer protection, Privacy and data protection of consumer information; iii. Need to build an enabling environment for DFS at the last mile and; iv. The need to build a robust DFS ecosystem and infrastructure. A list of recommendations to achieve these resolutions was been outlined in the forum’s communique.■ 11
12. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER Photorama Deputy Governor Financial System Stability, CBN and the Netherlands Ambassador to Nigeria during a courtesy visit to the CBN Temitope Akin-Fadeyi - Head, Financial Inclusion Secretariat, Tara FelaDurotaye - CEO, House of Tara International and Chukwuka Monye - Managing Partner, Ciuci at the launch of the Nigeria Business Composite 10 Panelists at the Accion 2017 Financial Inclusion Seminar Dr. Etienne Slabbert, MD & CIO, Barclays presenting a token of Gratitude to CBN on behalf of the organizers of New Age Banking Summit in Lagos Mr. George Ogudu, Financial Inclusion Secretariat, delivering a paper at the 2nd Annual Conference of the Association of Mobile Money Operators in Nigeria Recipients of the Client Protection Principles Certificate :Fortis Microfinance Bank and the Grooming center with Director, Consumer Protection, CBN EXCO members, Committee of e-Business Industry Heads (CeBIH) with CBN Deputy Governor, Operations during their 2017 Retreat tagged “Repositioning Digital Payments to achieve the Financial Inclusion Goals of FSS 2020” 12
13. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER FINANCIAL LITERACY: 2017 WORLD SAVINGS DAY CELEBRATIONS Edo State Governor charges Financial Institutions to cater for unbanked population. The Governor of Edo State, Mr. Godwin Obaseki has weighed in on the importance of Financial Inclusion in Nigeria. Speaking to commemorate the 2017 World Savings Day which is celebrated on the 31st October, every year Mr. Obaseki charged financial institutions across the country to improve their commitment to designing appropriate products and services for unbanked Nigerians. Mr. Godwin Obaseki Governor, Edo State The Governor went on to state that financial institutions needed to review their processes to avoid people being discouraged to partici- pate in the formal financial system. He highlighted that ‘banking need not be elitist or flamboyant’ encouraging that financial services providers to be more creative in catering to people in rural areas in order to boost their confidence and participation in the system. Speaking on the year’s theme, the Governor retorted that when the savings culture of any economy was properly developed, financial institutions stood to benefit and the economy would grow.■ Source: https://www.thisdaylive.com/index.php/2017/10/30/world-savings-day-obaseki-tasks-financial-institutions-on-unbanked-population/ Banks celebrate 2017 World Savings Day, Sensitize over 62,000 Students Some of the feedback from the participating financial institutions were as follows; Deposit Money Banks across the country celebrated the 2017 World Savings day by visiting schools in all the states of the federation.  “The World’s Savings Day event was a successful outing as the students understood the importance of savings and the steps involved in savings”—Access Bank Plc. The theme for the event years which took place on Tuesday, October 31, 2017 was ‘Our Future Starts with Savings’.  “The exposure to savings culture to the students will help to shape their financial future”- First City Monument Bank. Financial services providers used the opportunity to take their financial literacy campaigns to equip students with basic knowledge and understanding of how to effectively manage resources and develop the right entrepreneurship skills.  “It was difficult to open the accounts for the students owing to their ages. Going forward, we would look for more creative ways to incentivize the students and have the accounts opened”– First Bank Plc.■ Over 62,000 students were impacted by the banks with 2,678 student accounts opened during the celebrations. Students during World Savings Day celebrations Source: https://www.thisdaylive.com/index.php/2017/10/30/world-savings-day-obaseki-tasks-financial-institutions-on-unbanked-population/ NDIC teaches children on how to save for the future The Nigerian Deposit Insurance Corporation (NDIC) on Tuesday, 31st October 2017 joined the world to celebrate the World Savings Day. NDIC used the opportunity to teach students in 16 Secondary schools in Federal Capital Territory (FCT) and Nasarawa State on how to save. Mr. Sampson Hamilton, Principal Manager, Research and Planning Department, NDIC during the visit to the Government Secondary School, Gwagwalada urged students to save wisely and resist the temptation to spend from their savings to enable them prepare for the future. ■ Source: https://www.dailytrust.com.ng/world-savings-day-ndic-teaches-students-how-to-save-for-future.html 13
14. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER THE CAPITAL MARKET IFC Urges Nigeria to Deepen Capital Market The International Finance Corporation (IFC) at the Financial Inclusion Seminar to celebrate the 10th year Anniversary of Accion Microfinance Bank urged Nigerians to pay more attention to the development of an improved capital market in the country, in order to increase access to finance and drive financial inclusion. The event tagged “Making Financial Inclusion a certainty in Nigeria by 2020” held on September 30, 2017 at the Oriental Hotel in Lagos. Mr. Jingdong Hua, the Vice President/ Treasure of IFC who was part of a panel discussion noted that, it was important for Nigerians to ensure that the domestic capital market was vibrant, liquid and open. He further urged microfinance institutions in the country to tap into the capital market for improved access to finance for on-lending. According to Mr. Hua, through artificial intelligence and Fintech, Nigeria could leap frog by utilizing the local capital market to improve access to financial products and services for its population. He added that “I always say Nigeria is to Africa what China and India is to Asia. It is a continental economy and it has to be the strongest economic engine for the Continent”. Speaking at the event, the Chairman, Board of Directors of Accion Microfinance Bank, Mr. Patrick Akinwuntan re-emphasized the importance of the capital market to financial inclusion by noting that while they had achieved a milestone on increased customer base and an impactful loan book, the bank had the intention to further increase stakeholders’ base through a public offering and subsequent listing on the stock exchange. Also at the event was the president and CEO of Accion International, Mr Michel Schlein who asserted that the deployment of fintech was vital for financial inclusion and therefore a strategic collaboration between microfinance banks and fintech companies would provide a great outlook for the industry.■ Source: https://www.thisdaylive.com/index.php/2017/10/03/ifc-urges-nigeria-to-deepen-capital-market/ NSE charges SMEs to take advantage of the ASeM Platform The Acting Head, Corporate Services, Nigerian Stock Exchange (NSE), Pai Gamde has called on Small, Medium Enterprise to take advantage of Alternative Securities Market (ASeM) Platform, a specialized window of NSE for emerging businesses with high growth potential. ASeM provides smaller companies the opportunity to access the capital market and raise long- term capital through more flexible listing rules and requirements. Mrs. Gamde made this call at the 10th anniversary on the Ciuci Consulting, a strategy and consumer intelligence company on September 26, 2017. The company’s anniversary was marked by the launching of the Nigeria Business Composite 10 (NiBC10) at the Nigerian Stock Exchange in Lagos. The NiBC 10 was a selection of 10 successful Nigerian Enterprises that were clients of the consulting firms who exhibited high potentials for growth. The companies were as follow: Bestman Games Limited, DBH Solutions Limited, Everyday Supermarket, Healthcare Leadership Academy, House of Tara International, Iya Foods, L’Avyanna, Massey Street Children Hospital, Private Sector Health Alliance of Nige- CEOs of NiBC10 Enterprises with Mrs. Pai Gamde (NSE) and Mr. Chukwuka Monye (Ciuci) ria and Ugo Monye Limited The event was aimed at showcasing Ciuci’s journey in the consulting business and celebrating the achievements of the NiBC10 whilst inspiring confidence in the Nigerian society and its potential to produce thriving businesses. According to the Managing Partner of Ciuci Consulting, Mr. Chukwuka Monye, “Nigerian entrepreneurs need to see examples of business men and women that were working hard and creating successful businesses in the same environment that many feared to explore. We have worked with each of the 10 companies who were at different growth stages and are pleased to recognize them and encourage them for what they do”. The event ended with the Ringing of the Closing Bell by Mr. Monye and the NiBC 10 CEOs.■ Source: http://www.ciuici.us/anniversary/ 14
15. N o vem b er 20 1 7 , Vo l um e 2, Is su e 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER STRATEGIC ENGAGEMENTS Financial Inclusion Secretariat (FIS) undertakes target Setting for Microfinance Banks in North-West and North-East and North East) and the State Government executives. The main objective of the exercise was to inform financial services providers and stakeholders in the region of the fact that the National Financial Inclusion Strategy targets were to be broken down for Deposit Money Banks and Microfinance Banks. Mr. Peter Olayinka, Head Data Management Office, FIS during the exercise. In an effort to increase access to Financial services in the northern region of the country, the Financial Inclusion Secretariat conducted a target setting exercise for microfinance banks to discuss barriers to financial inclusion and opportunities to improve the situation in the region. The exercise which took place in Bauchi and Kano States from the 9th to 13th October, 2017 involved interactive sessions with CBN Branch Management Staff, Microfinance Banks (North West During the engagement with the Financial Services Providers, the FIS provided the methodology which was used to allocate targets to the Microfinance Banks and committed to sending the final targets for each institution. The targets allocated included number of savings customers to mobilize, credit targets and ATMs and POS’ to be deployed. Participants during the exercise in their states. At the end of the engagements, some key resolutions from the meeting were arrived at as follows:  That a Financial Inclusion Steering Committee should be set up in each state to drive and monitor National Financial Inclusion Strategy (NFIS) implementation at the state levels.  That the committee which should comprise financial services providers, State Government Officials and CBN representatives should meet quarterly to promptly address state level exclusion rates.■ The Secretariat also engaged the State Government officials in Bauchi and Kano in which the state executives reaffirmed their commitment to support the Financial inclusion drive Securities and Exchange Commission (SEC) holds its second financial inclusion outreach programme in Kuje Area Council, Abuja The Security and Exchange Commission (SEC) has organized a Financial Inclusion Outreach Programme for Nomadic and Market people from Kuje Area council. The Programme took place at the Conference Room of the Council Secretariat, Kuje on 5th October, 2017. The aim was to create awareness on financial inclusion products such as Capital Market, Insurance, Pension, Saving and Credits and also to discourage participants from being involved in the Ponzi schemes. The Chairman Bwari Area Council represented by Mrs. Rose Amuso, in her opening remarks, welcomed participants to the event and urged them to actively participate in the events . Lastly, She wished all present successful deliberations. Participants at the outreach programme Mr. Gambo Kabir, Data Analyst of the Financial Inclusion Secretariat (FIS) delivered the Goodwill Message. He commended SEC for organizing the programme and went further to educate the participants on the role of the CBN in promoting Financial Inclusion in Nigeria.  In 2012, Nigeria launched the National Financial Inclusion Strategy to reduce the percentage of adult Nigerians excluded from financial services from 46.3% in 2010 to 20% in 2020.  Access to Finance was key, as it could support small businesses to grow and expand.  Individuals must verify financial i n s t i t u ti o n s th r o u g h t h e CBN/NDIC to avoid being duped by fraudsters . At the end of the Programme, the SEC appealed that the participants should pass on the message to others for the benefit of all and reminded them that they should never put Some of the key highlights from the presenta- their money where it was not safe.■ tion include : 15
16. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER INTERNATIONAL FINANCIAL INCLUSION NEWS Alliance for Financial Inclusion (AFI) holds 9th Global Policy Forum in Egypt The Alliance for Financial Inclusion (AFI) in collaboration with the Central Bank of Egypt, has organized its 9th Global Policy Forum (GPF) in Sharm El Sheikh, Egypt from 13th to 15th September, 2017. AFI is a voluntary global network of policymakers and financial service regulators from over 90 countries across the globe. It promotes knowledge and experience sharing on financial inclusion among member countries in support of inclusive growth and development objectives. The Opening Ceremony was attended by the President of the Arab Republic of Egypt, H.E. Mr. Abdel Fattah El Sisi, who delivered the Keynote Address. The Prime Minister, Honorable Engr. Sherif Ismail, the Chairman of the Arab Monetary Fund, Governors of Central Banks, Deputy Governors, Heads of global finance agencies, and private sector companies amongst others also participated at the Opening Ceremony. The Governor, Central Bank of Egypt, Mr. Tarek Amer in his Opening Remarks thanked the out-going AFI Chairman, Governor Benno Ndulu of Central Bank of Tanzania, for his tremendous contribution to the AFI network and welcomed the new AFI Chair in the person of Dr. Isaac Ferreira Deputy Governor, Banco Central do Brasil. Over 700 people were in attendance at the GPF. The theme, Promoting Inclusion, Exploring Diversity addressed Diversity and Financial Inclusion: Balancing the Formal and Informal Sectors; Egypt’s Experience and Journey in Financial Inclusion; Financial Inclusion and Economic Empowerment of Women ; the Diversity and Challenges of Financial Inclusion in the Arab Region, Peer to Peer in-Country Support and Financial Inclusion, and Climate Change. There were breakout sessions on AFI’s Regional Initiative Roundtables for Africa, Pacific Islands, Latin America, the Caribbean and Asia; Innovative Technologies to Advance Financial Inclusion of SMEs, Connecting National Financial Inclusion Strategy Aspirations and Sustainable Development Goals and Leapfrogging Financial Inclusion Through New Technologies. Gender specific financial inclusion in line with Denarau Action Plan and the adoption of the Sharm El Sheikh Accord on Climate Change were the high points of the entire discussion. The Central Bank of Nigeria (CBN) was represented by the Consumer Protection Department, Financial Inclusion Secretariat (FIS) of the Development Finance Department and the Banking & Payments System Department. The Key points from the GPF include the following;  AFI adopted the Sharm El Sheikh Accord on Financial Inclusion, Climate Change and Green Finance to support climate change management efforts in respective jurisdictions.  AFI established the Gender and Women’s Financial Inclusion Committee as a permanent Committee of the AFI Board and elected two women on its Board to provide leadership for advancing and promoting women’s financial inclusion in the AFI Network.  One of the key strategies for lowering cost of financial services and accelerating financial inclusion is the use of digital/electronic means, and central banks had started learning on how to come up with digital currencies in the future. It was a major discourse during the programme. ■ Delegates at the 9th Alliance for Financial Inclusion Global Policy Forum in Sharm El Sheikh, Egypt. Photo: http://english.ahram.org.eg/NewsContent/1/64/277072/Egypt/Politics-/Sisi-opens-intl-forum-on-financial-inclusion-in-Eg.aspx 16
17. N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 FI N A NC IA L I NC LU SI O N N E W SL E TT ER INTERNATIONAL FINANCIAL INCLUSION NEWS MasterCard hosts Financial Inclusion Symposium (SOFI) in Ghana The 2017 Master Card Symposium on Financial Inclusion took place from the 8th to 9th November in Accra, Ghana. The symposium reflected on progress to expand and deepen financial inclusion, explored challenges and opportunities in the sector, and planned on how to achieve improved financial inclusion on African region. the Director for Financial Inclusion at MasterCard, Ann Miles highlighted that progress to date with the proliferation of Digital Financial Services (DFS) was unprecedented. Panel Session on “Financial Inclusion in a Dynamic West African Context” with Gugulethu Cele — News Anchor, CNBC Africa, Temitope Akin-Fadeyi — Head of Financial Inclusion Secretariat, Edward Effah — Founder and CEO of The Fidelity Group and Maimouna Gueye — Principal Financial Inclusion Officer, African Development Bank During the Symposium, Source :https://www.howwemadeitinafrica.com/african-banks-must-adapt-die-emerging-fintechs-evolve-bigger-threats/60358/ The company which has offices in Tokyo, Japan has already secured some partnerships with Etisalat from the United Arab Emirates, Dutch VEON Group and Telecom Tunisie. According to the Telcoin chairman and cofounder, Paul Neuner, the product will allow users to send remittances, make money transfers and payments online. The ERC20 will also support international aid by allowing users to buy and donate the cryptocurrency online for distribution to mobile money users in disaster ridden regions. A report conducted by a venture capitalist firm, ‘Village Capital’ which was funded by the Bill and Melinda Gates Foundation has revealed that Digital Financial Services firms require more venture capital investment to promote mobile money in India and Telcoin expects to offer Africa. ipartner telco companies The report titled ‘Breaking the with the ERC-20 for free Pattern’ revealed that 72% of on the condition that venture capital in East Africa in these companies distrib- the last two years went to only ute it to their existing cus- three start-ups. tomers. The main objective of the report The company does not was to find out why DFS firms intend to compete with and other fintechs were not permobile money providers forming their optimum role in the but aims to provide com- advancement of financial incluplementaries that would sion. enhance the achievement In the report, the CEO of Village of financial inclusion.■ Capital, Mr. Ross Baird noted that https://coinjournal.net/singapore-telcointargets-unbanked-new-erc20-cryptocurrency/ Source CNBC Africa, MasterCard Foundation Wider, deeper VC investment needed for Indian and African mobile money firms, says Gates Foundation report Singapore Telcoin Targets the Unbanked with New ERC20 Cryptocurrency A new Asian Start up company in Singapore called ‘Telcoin’ has developed its crypto currency called ERC20. The company intends to partner with Telco operators to facilitate its adoption. She noted that while there were still a lot of issues related to data privacy and security, the whole industry, with all the different players, will have to work harder to make DFS the safer option to improve access to financial products for the Bottom of the economic pyramid.■ due to the perceived risky nature of DFS company operations, in- vestors were hesitant to invest in the sector. Some of the recommendations on the type of support the DFS firms and Fintechs need reach scale. According to the report include:  Facilitate partnerships between entrepreneurs and major financial institutions to improve scale up capabilities  Develop alternative financing mechanisms to provide DFS companies with the right funding at the right time.  Strengthen the human/capital infrastructure so that it isn't automated and always using the same networks. This will improve outreach and the ability of more fintechs and DFS firms to get to market. ■ : : https://www.cnbc.com/2017/06/20/wider-deeper-vc-investment-needed-forindian-and-african-mobile-money-firms-says-gates-foundation-report.html Source 17
18. FI N A NC IA L I NC LU SI O N N E W SL E TT ER N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 NIGERIAN FINANCIAL INCLUSION NEWS First Bank Drives Financial Inclusion in rural communities The First Bank of Nigeria Limited in its effort to serve the unbanked and under-banked populace has launched Agent Banking Services through its refreshed FirstMonie brand. The brand would provide access to financial services in rural communities across the country. Firstmonie agents are positioned within rural communities to assist residents to open bank accounts, deposit and withdraw cash, purchase airtime and undertake bill payment amongst others. The Group Head, e-Business, Mr. Chuma Ezirim disclosed that the new brand was a demonstration of the banks commitment to providing affordable financial solutions that would break the barriers of access to financial services for people living in remote areas. According to him, when people have access to convenient financial services, they are able to save money and invest, access credit to support their small business or to keep their children in school, access better health care, and feed better, He therefore encouraged customers to look out for the Firstmonie locations closest to them. ■ Source : https://www.proshareng.com/news/Products%20&%20Services/FirstBank-Drives-Convenience-and-Financial-Inclusion- BoI, BMGF, CGAP Partner to scale up GEEP deepen Financial Inclusion in Nigeria In the bid to further deepen financial inclusion, the Bank Of Industry (BoI), Bill and Melinda Gates Foundation (BMGF) and Consultative Group to Assist the Poor (CGAP) have gone into partnership to support one of the Federal Government’s Social Intervention Programme, “Market Moni, under the Government Enterprises and Empowerment Programme (GEEP). The programme which is targeted towards market men and women, artisans, enterprising youths and farmers provides interest free-loans ranging from N10,000 to N100,000, but a one-time administrative fee of 5 percent. The Executive Director, Micro Entreprises—BoI, Mrs. Toyin Adeniji disclosed this during the visit of the Directors of the BMGF to the Lagos state Plank and Building Materials Market Association. She said that the bank was working in partnership with BMGF and CGAP to ensure that the GEEP scale up to the target of over one million beneficiaries as stipulated by the Federal Government The BMGF works with partner organization organizations worldwide to tackle critical problems aimed at lifting the vulnerable poor out of poverty. While CGAP is a global partnership of more than 30 leading organizations that seek to advance financial inclusion and develop innovative solutions.■ Source: https://www.vanguardngr.com/2017/11/boi-gates-foundation-cgap-partner-boost-entrepreneurship/ Grooming Centre, Fortis receive CPP’s certification In recognition of their commitment to enhancing the fortunes of its customers, Fortis Microfinance Bank and the Grooming center have been provided with Client Protection Principles’ (CPP) Certification. The Certificate which was presented during a ceremony hosted by Micro Rate Smart Campaign in Lagos was seen as a stamp of approval on both grooming centre and Fortis Microfinance Bank. Speaking to the Daily Times Newspaper, Dr. Godwin Nwabunka, CEO Grooming centre stated that they would continue to be transparent and efficient in addressing customer complaints while improving their deliveries. ■ Source: https://dailytimes.ng/grooming-centre-fortis-receive-cpps-certification/ 18
19. FI N A NC IA L I NC LU SI O N N E W SL E TT ER N o vem b er 2 0 17 , Vol u me 2 , Is s ue 4 CBN issues Regulatory Framework for Bank Verification Number (BVN) Operations and WatchList for the Nigeria Financial System In furtherance of its mandate to develop and enhance the security of electronic payments system in the Country, the CBN has issued the Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigeria Financial System in a circular referenced BPS/DIR/GEN/CIR/04/010 on October 18, 2017 The framework is aimed at addressing Industry to address the increasing incidences of frauds with a view to building citizens confidence in the banking industry. The watch-list is a database for bank customers identified by their BVNs, who have been involved in confirmed fraudulent activities. The key points specified in the framework include: Participants The participation in BVN operations were grouped into five (5) categories namely: CBN, Nigeria Inter-Bank Settlement System (NIBSS), Deposit Money Banks (DMBs), Other Financial Institutions (OFI and Bank Customers Roles and responsibilities The roles and responsibilities of identified category groups are as follows:   Objectives:  To clearly define the roles and responsibilities of stakeholders;  To define the operations of the BVN;  To define access, usage and management of BVN information, requirements and conditions;  To provide a database for watchlisted individuals;  To outline the process and operations of the watch list; and  To deter fraudulent incidences in the Nigerian Banking Industry  CBN shall be responsible for approval and review of the framework, oversight of the BVN operations and systems, monitoring stakeholder compliance and applying sanctions for non-compliance. NIBSS shall be responsible for maintaining and managing technology aspects of the BVN and watch-list; securing access to information and updating watch-list database. DMBs and OFIs shall be responsible for BVN capture and verification; render returns to NIBSS for enlisting individuals involved in fraudulent activities, delisting individuals after clearance and integrating the banking system to the watch list. Bank customers shall abide by the regulatory framework and report any suspicious activities on their accounts.■ Eligibility for Access to BVN information: BVN information can only be accessed by the entities listed in the framework, subject to approval by CBN for a fee, which will be determined Security and data protection mechanism: shall be put in place to safeguard Customer information as well as the appropriate Consumer protection and redress mechanisms . Fraud categories: Four categories of fraud were identified, namely:  Category 0 (fraudulent infraction without monetary value);  Category 1 (confirmed successful fraud with monetary value;  Category 2 (customer watch-listed more than once);  Category 99 (fraudulent individual that is at large) Sanctions and Penalties: The framework also listed the penalties applicable for each category of fraud Process of delisting: Approval must be sought from CBN for delisting individuals from watchlist and upon approval, the NIBSS shall delist within one (1) business day and the Bank shall notify the customer appropriately.■ For access to the framework: https://www.cbn.gov.ng/Out/2017/BPSD/Circular%20on%20the%20Regulatory%20Framework%20for%20BVN%20% 20Watchlist%20for%20Nigerian%20Financial%20System.pdf 19
20. The Financial inclusion Secretariat coordinates the implementation of the National Financial Inclusion Strategy (NFIS) in Nigeria. The Secretariat liaises with stakeholders in the Financial Inclusion space and engages, monitor and evaluate initiatives geared towards the achievement of the NFIS targets. This newsletter is a quarterly publication of the Financial Inclusion Secretariat and features industry news on financial inclusion, as well as periodic updates on the progress of the implementation of the NFIS in Nigeria For further enquires and submission of articles for publication, please contact: Head, Financial Inclusion Secretariat Central Bank of Nigeria Plot 33, Abubakar Tafawa Balewa Way Central Business District, Cadastral Zone, Abuja, Federal Capital Territory Telephone: 0946237625 Email: FIS@cbn.gov.ng EDITORIAL TEAM: Akin-Fadeyi, Temitope Attah, Joseph A. A Ogudu, George Abu, Sophia Hadejia, Maryam Umar, Zainab 20