LATEST UPDATES
Card-image-cap

Technology | Data & Financial Inclusion

Regulatory Flexibility and Agency Banking Will Enhance Financial Inclusion in Nigeria - Henry Chukwu

May 13, 2020   •   by   •   Source: Proshare   •   eye-icon 1174 views

Wednesday, May 13, 2020 / 2:39 PM / Bukola Akinyele for WebTV / Header Image Credit: Ecographics

 

The Programme Specialistfor Enhancing Financial Innovation and Access (EfinA), Mr. Henry Chukwu,recently spoke on the prospect of deepening Financial Inclusion in Nigeria as aguest speaker on WebTV's Economy and Politics Show.


Proshare Nigeria Pvt. Ltd.


Chukwu said that FinancialServices Agents spread across the country need continuous support fromfinancial institutions to carry out their duties effectively.


Speaking on how COVID-19has affected Nigeria's 2020 financial inclusion target at a 20% exclusionrate,  Chukwu disclosed that the pandemic has affected the actualizationof the target as the country is less likely to achieve its inclusion goal bythe end of the year. According to him, the spread of the virus affects thelower rung of businesses and jobs that rely on daily business to earn income.


Sharing his thoughts onthe EfinA Access financial survey 2018, he said that out of 44.3million adultsthat owned businesses about 23million adults earned income from dailyactivities. Looking at this figure and considering the restrictions on movementand enterprise placed by the government a lot of these individuals have had their livelihoods disrupted and become financially excluded.


Looking back to 2016-2018the excluded population declined by 8.23%  from  40.1million adultsexcluded in 2016 to 36.8million adults excluded in 2018 the percentage declinewithin 2 years shows it would be difficult to reduce the 16.8% differencebetween the target of 20% by 2020 and the current 36.8%.


According to him, EfinA'sfocus is to build resilience in financial service providers such as agents andindividuals needed to combat the effects of COVID-19, EfinA would put a lot ofeffort into providing credible information that could support financial serviceproviders within the period.


Proshare Nigeria Pvt. Ltd.


Speaking further, Chukwuexplained that EfinA had worked very closely with the Shared Agent NetworkExpansion Facilities (SANEF) and other stakeholders to understand andidentify opportunities of harmonizing efforts and continuing to deepen accessto financial services in Nigeria.


He commended the CentralBank of Nigeria (CBN) for commencing several initiatives such as the 50billioncredit facility to support individual households affected by COVID-19 and thereduction of the interest rate on government intervention loans from 9% to 5%.


In respect of thechallenges faced by financial services company's in supporting inclusion, hesaid the major challenge was the low level of economic activity which had costseveral jobs and livelihoods.


He was of the view thatdespite the challenges there was still an opportunity for the industry toleverage the palliative measures provided by the federal and state governmentsto deepen financial inclusion, drive account opening, increase financialliteracy, improve financial capability among beneficiaries while also drivingfinancial inclusion in the country.


Speaking on what needs tobe done to extend palliatives to the informal sector and financial serviceagencies. Chukwu noted that there was a need to use the resilience of agencyactivities, and enlighten them on precautionary measures to prevent poorbusiness choices whilst promoting collaboration to generate business activitiesthat would support transactions.


Giving insight into thebreadth of Agency banking in all 774 local governments in the country, Chukwu said the only channel that ould be used to extend financial services tothe LGAs was through agents and this was the time for agency banking to adoptappropriate strategies to deepen the deployment of the agent network in ruralareas to continue to provide business. He noted that EFINA was workingvariously with SANEF, stakeholders and service providers to see how they couldsupport agents and identify problems within the industry. He said PostCOVID-19,  there was a need for sustained activities to reassure agents ofcommitment to support them.


Speaking on theinteraction with the Fintech Community, according to him, the Fintech communitywas very critical to financial inclusion by providing innovative ideas tosupport the expansion of services. "We have seen a lot of opportunitiesaround Fintech and we would continue to engage and support them to come up withinitiatives that ould deepen financial inclusion", Chukwu said.


On how to improve women'sfinancial inclusion, Chukwu believed that women had a huge role to play interms of driving financial inclusion and promoting overall improvement in thehousehold economy.


He said EFINA partneredwith Central Bank of Nigeria (CBN) to understand inclusion among women lookingat the women exclusion rate of 55%. Chukwu noted that  EfinA tried tounderstand the factors that affected women financial inclusion in the countryand how best to improve the conditions that promote increased womenparticipation.


He encourages more womento become financial activity, he noted that in the North West 65% of women werefinancial excluded and in the North East 68% of women were financial excluded.


Speaking on deepeningfinancial literacy in Nigeria, Chukwu observed that financial literacy was veryimportant for EfinA, the organisation works closely with other stakeholders todrive financial literacy. He said that by deepening financial literacy,individuals would have the proper set of knowledge and skills to grow theirbusinesses and make positive contribution to the economy at large.


He called for regulatoryflexibility post-COVID-19 to ensure consumer protection and also the NationalInsurance Commission (NAICOM) to push for the adoption of Microinsurance whichwas very important especially for low-income enterprises and individuals. 


Proshare Nigeria Pvt. Ltd. Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.  Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.



Related News

1.     Ahead ofTomorrow on WebTV: Discussions on COVID-19; Deepening Financial Inclusion inNigeria

2.  Ahead ofTomorrow on WebTV: Discussions on COVID-19; The Fourth Industrial Revolutionand Nigeria

3.    COVID-19: Impactand Opportunities for Financial Services Agents in Nigeria

4.    Firstbank:Empowering Women through Financial Inclusion

5.    Mandatory DataPrivacy Compliance for Nigerian Companies - A Data Audit Offer

6.    How NigerianMFBs Use Digital Strategies To Deepen Financial Inclusion

7.     DigitalTechnology Will Enhance MFB Operations in Nigeria - Victor Mba

8.    Identifying The4 Pillars for Achieving Nigeria's Financial Inclusion Target - PatrickAkinwuntan

9.     Accion 2019 SeminarExplores How MFBs Can Deepen Financial Inclusion

10. How Africa'sFintech Industry Will Shape Financial Inclusion

11.  Accion MFB toHost its 3rd Annual Financial Inclusion Seminar on December 11th, 2019

12.  CBN BankersCommittee Celebrate 2019 World Savings Day Reaching 642 Schools In Nigeria



Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.