Financial Inclusion Newsletter June 2018
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Deputy Governor, Financial System Stability charges stakeholders to sustain commitment to the Financial Inclusion agenda Inside this issue: Cover Story 1 National Financial Inclu- 2-3 sion Governing Commit- tee meetings Critique Workshop on the 4 Draft NFIS Refresh Spotlight: NYSC Peer 5-6 Educator Programme for Financial Inclusion Knowledge Exchange 7-8 Photorama 9 Stakeholder Engage- 10-11 DG, FSS—Mrs. Aishah Ahmad chairing the 14th National Financial Inclusion ments Technical Committee meeting, in Abuja Financial Literacy 12 The Chairperson, National Financial inclu- She reminded members of their critical Credit Enhancement 13 sion Technical Committee (NFITC), Mrs. roles in delivering the 80% financial in- Digital Financial Inclu- 14 Aishah Ahmad - Deputy Governor, Finan- clusion target by 2020, particularly in sion cial System Stability (DG, FSS), formally view of EFInA‘s biennial report which assumed leadership of the Committee at showed 58.4% financial inclusion rate, Closing the Financial 15-16 its 14th meeting held on Thursday, June as at 2016. She noted that a lot of Inclusion Gender Gap 21st, 2018 at the Central Bank of Nigeria grounds were still to be covered consid- (CBN) Headquarters in Abuja. Nigerian Financial Inclu- 17 ering the country‘s demographics which sion News popped out adults yearly. Mrs. Ahmad commended the former International Financial 18 Chairperson, Dr. Joseph Okwu Nnanna The Deputy Governor stated that despite Inclusion News (now Deputy Governor, Economic Policy, the challenges, achieving the set finan- CBN), for successfully piloting the affairs cial Inclusion target was possible and National Dialogue on 19 of the Committee to the level where it required a strong will, sustained commit- bridging the Humanitari- was. She equally expressed appreciation ment and active collaboration of all an Development in the for the sustained commitment of all the stakeholders towards the removal of North East members, the respective Working Groups bottlenecks militating against financial and the Financial Inclusion Secretariat inclusion in the country ■ Contact details 20 towards the actualization of the financial inclusion goals for the country. Financial Inclusion Status as at December 2016 Source: Enhancing Financial Innovation & Access (EFInA) June 2018, Volume 3, Issue 2 FINANCIAL INCLUSION NEWSLETTER National Financial Inclusion Governing Committee Meetings 14th National Financial Inclusion Technical Committee Meeting The National Financial Inclusion Technical Committee held its 14th meeting on 21st June, 2018. The meeting featured key highlights from the four (4) working groups (Literacy, Channels, Products and Special Interventions). A progress update from the Financial Inclusion State Steer- ing Committees (FISSCO) across the 6 geopolitical zones was presented by the Abuja Branch Controller, Central Bank of Nigeria, Mrs. Elizabeth Agu. In addition, the National Financial Inclusion Strategy Re- fresh (NFIS 2.0) was presented by the Head, Financial Inclu- sion Secretariat—Mrs. Akin-Fadeyi. She highlighted that the draft document had been updated following the Critique Workshop held in May 2018. The Refresh was necessitated DG, FSS—Mrs. Aishah Ahmad and a cross-section of Directors by the 5 year implementation experience since the Strategy at the meeting launch in 2012. Also, the need to dy- namically leverage the changing operat- ing environment and several new initia- tives to spur greater inclusion in further- ance of the 2020 targets.. Members resolved that the Draft docu- ment should be presented to the Steer- ing Committee at its next meeting in July 2018, for assent as well as the issuance of a public Exposure Draft for comments before finalization. The key highlight of the 2017 Financial Inclusion Annual report was also pre- sented, revealing that global inclusion was on the rise, with a 7% increase in account ownership to 69% from 62% in 2014. However, a decline was noted for Nigeria from 44% in 2014 to 40% in 2017 (World Bank FINDEX database, 2017). The need to further leverage digital financial services to scale up fi- nancial inclusion rate was emphasized. A presentation on the Shared Agent Net- work Expansion Facility (SANEF) plan and 5% interest per annum. The fund million people into the banking sys- was delivered by Mr. Bolaji Lawal, Exec- has a 2 year moratorium on principal tem within a period two and half utive Director—Guaranty Trust Bank, on and one year moratorium on interest. years. behalf of the Body of Bank Chief Execu- tive Officers (CEOs). The initiative seeks Four concurrent projects would run The Central Bank of Nigeria is work- to drive financial inclusion through ag- under the SANEF namely: Fast track ing closely with the Body of Bank gressive deployment of 500,000 agents BVN enrolment, Government Savings CEOs to ensure the seamless imple- for financial services across the country. Account, Financial Literacy Campaign mentation of the initiative as it is and Creating an Economic Value Prop- expected to drive increased uptake Eligible Super Agents and Mobile Money osition. of Savings and other financial ser- Operators (MMOs) are being funded vices, in support of financial inclu- from the SANEF up to the tune of N500 Mr. Lawal emphasized that the overall sion in the country ■ Million each, with a 10 year loan tenor objective of SANEF was to bring in 40 2 June 2018, Volume 3, Issue 2 FINANCIAL INCLUSION NEWSLETTER National Financial Inclusion Governing Committee Meetings 14th Financial Inclusion Working Group Meetings The four Financial Inclusion Working Groups held their 14th meetings at the International Training Institute (ITI) of the Central Bank of Nigeria (CBN) in Abuja on 20th June, 2018. Key Highlights from the meetings are summarized below: Financial Inclusion Product Working Group Financial Literacy Working Group (FIPWG) (FLWG) 1. Financial Inclusion Strategy for the Capital market 1. Mass Sensitization and awareness The Securities and exchange commission (SEC) re- CBN carried out sensitization fairs in 11 states. The De- ported that it was sensitizing members of the public velopment partner, GIZ also trained 26,266 beneficiaries on the Commodity Exchange Product and other Fi- on financial literacy concept nancial Inclusion Initiatives of the Commission such 2. School Reach Out and Mentoring as the Collective Investment Schemes (CIS). The Bankers Committee mentored over 75,000 stu- 2. Super Agency License: dents. National Pension Commission (Pencom) mentored The Nigerian Postal Service (NIPOST) reported that it students at the Government Junior Secondary School, had met all the requirements for the issuance of a Tudun Wada and Government Secondary School, Area 1 Super Agency License and was collaborating with fi- in Abuja and also donated 7 computers to each school. nancial institutions and several Government Agencies 3. Financial Education Curriculum in its service delivery. Teachers training scheduled to hold in July 2018, and 3.Micro Insurance Guidelines will be anchored by Nigerian Educational Research and The National Insurance Commission (NAICOM) re- Development Council (NERDC) ported was in the process of licensing 7 Insurance 4. Financial Education Strategy Companies that will offer micro insurance. The draft was presented for comments by members, 4. National Identity ahead of a Public Exposure ■ The National Identity Management Commission (NIMC) has registered 30million Nigerians and is Financial Inclusion Special Intervention Working Group awaiting the Executive Council‘s (FEC) approval to (FISIWG) commence the ID Ecosystem approach, in partner- 1. Closing The Financial Inclusion Gender Gap ship with the World Bank ■ A sub-committee was established to identify issues hin- dering women‘s access to finance. Financial Inclusion Channels Working Group 2. NYSC Peer Educator Programme for Financial Inclusion (FICWG) 1.Financial Inclusion in Rural Areas. The Federal Ministry of Youth and Sports development reported that about 601 Corps members were trained Micro Finance Banks (MFBS) and Micro Finance at the last orientation camp which took place in June institution (MFIs) are well equipped to provide fi- 2018. A total number of 2,589 corps members have nancial services to rural communities been trained in the 14 states. 2. Shared Agent Network Facility 3. Government Enterprise and Empowerment Programme The committee developing the frame work on Shared The Bank of Industry (BOI) reported that it had partnered Agent Network Facility (SANEF) provided update on with Interswitch to enable electronic repayment for the SANEF as a means of addressing the regional and ur- GEEP. An ultra micro loan of N10,000 per beneficiaries ban-rural gap in financial inclusion through agency also launched. banking. 4. Entrepreneurs with disabilities 3.Use of airtime for payment of Insurance premiums Updates provided on the engagements between finan- Market operators advocated for the adoption of airtime cial institutions and the Joint National Association of to pay for micro insurance premiums. Pursuant to this, Persons with Disabilities (JONAPWD) on terms of refer- consultations between CBN, NCC and NAICOM on the ence for serving the segment ■ matter was recommended ■ 3 June 2018, Volume 3, Issue 2 FINANCIAL INCLUSION NEWSLETTER Critique Workshop on the Draft National Financial Inclusion Strategy Refresh The Financial Inclusion Secretariat organized a Critique Workshop on the 17th of May, 2018 for members of the Tech- nical Committee to review the draft of the National