The Central Bank of Nigeria (CBN), deposit money banks, Mobile Money Operators, and Super Agents are to roll-out a 500,000 shared agent network within two years, to deepen financial inclusion in the country.
The agreement entails an aggressive rollout of 500,000 agent network within two years to offer basic financial services, such as Cash-in, Cash-out, Funds Transfer, Bill Payments, Airtime purchase, Government disbursements as well as remote enrollment on BMS Infrastructure (BVN) to an estimated 50 million Nigerians that are currently under-banked or unbanked.
Consequently, licensed Mobile Money Operators and Super Agents are expected to deploy financial services agents’ outlets immediately in underserved urban and rural areas in Nigeria, with higher priority in the Northern geo-political zones where financial exclusion is most predominant.
The approved CBN–Bankers Committees’ roll-out ratio is as follows: North-East 30 percent; North-West 30 percent; North-Central 20 percent; South-South 7.5 percent; South-East 7.5 percent; and South-West 5 percent. Some of the prequalified CBN Licensed operators include Capricorn Digital Limited, Cellulant Nigeria Limited, eTranzact Limited, Innovectives Limited, Inlaks Limited, Interswitch Financial Inclusion Services Limited, Paga Tech Limited and Unified Payments Nigeria Plc.
According to the plan, the CBN and Nigerian Banks will over the next few months also roll out new initiatives, products and services to accelerate and deepen Financial Inclusion in Nigeria. To this end, renewed focus will be given to driving low cost digital access, broadening financial literacy campaigns, and creating micro loans, micro insurance and micro investment products for the benefit of excluded, underserved and low income Nigerians.
Commenting on the Shared Agent Network Expansion program, the Chairman of the Body of Bank CEO, Herbert Wigwe, CEO of Access Bank Plc said; “This agreement reflects our commitment to aggressively pursue the CBN 2020 Financial Inclusion target in an integrated way with minimal systemic risk to the financial system. This initiative will also generate over 500,000 new jobs over the next two years. Hopefully, we can see more SMEs getting lending at a single-digit interest rate”.
Kennedy Uzoka, groep managing director/CEO, UBA, said, “We are bringing banking services to individuals that are excluded. So, it is not just about loans, it is the entire things that you will get from the banks. So be rest assured that people who will come to the network based on the extended infrastructure that we are providing will have access to banking service”.
Segun Agbaje, CEO, GTBank, said “the difference between this programme and others in the past is that this is being led by the private sector and the banks. This is not a government-led initiative. As banks, anything we start, we tend to finish. This is not being done for profit. Ultimately, profit will eventually come, but initially, the whole objective is to bring people into the financial system. And the money we are using are monies that we had already set aside out of the profit that we had made. So, this is an initiative that is essentially for Nigeria and to bring people into the financial system. It is about deepening the financial system”.
Also speaking, Peter Amango, CEO, Zenith Bank said the most important aspect of this initiative is to bring the unbanked into the financial system.
“We are poised to providing convenience at affordable cost. We are engaging the telcos and the CBN is in with us on this. We want to bring all those in the rural areas in”, Amango said.
Uzoma Dozie, CEO, Diamond Bank said “ this is a shared that will ensure that the cost of reaching the unbanked. We are investing in the future and this is one thing that will benefit the entire nation”.
Commenting on behalf of the mobile money operators, Tayo Oviosu, founder/CEO of Paga, said “To significantly grow financial inclusion in Nigeria we need to offer truly effective digital financial services that operate on all mobile telecom networks and a robust nationwide network of agents for convenient access. The Shared Agent Network Expansion program supports our plans to rapidly scale up the agent network over the next year. With this expansion program, the entire financial industry will reach deeper into even more communities and give millions of Nigerians convenient access to financial services.
HOPE MOSES-ASHIKE
