The Federal Ministry of Youth and Sports Development Flags-Off pilot NYSC Peer Educator Programme for Financial Inclusion

Inside this issue:

Cover Story: Federal 1 Ministry of Youth and Sports flags-off pilot NYSC peer Educator Programme Training of Trainers 2 Workshop on NYSC Peer Educator Pro- gramme National Financial 3-4 Inclusion Governing Committees holds its statutory meetings NYSC Director-General, Brigadier General Sulaiman Kazaure flanked by officials and Corps members during Spotlight: Guidelines 5 the Flag-Off Ceremony of the Peer Educator Programme at the NYSC Permanent Orientation Camp, Mangu, for Bancassurance Source: http://nysc-cds.com/in-the-news/nysc-members-enlisted-educators-financial-inclusion-programme International Collabo- 6 The Minister of Youths and Sports, Barrister He added that “the programme will help reduce ration Solomon Dalung has flagged-off the pilot the rate of youth unemployment and restiveness scheme for the National Peer Educator Pro- Microfinance Sector 7 and provide young entrepreneurs with increased gramme for Volunteer Corps members. access to fund/ credit facilities and business

The Programme aims to create awareness skills”. Insurance Sector 8 among young people on the need to make use The NYSC Director-General, Brigadier General Stakeholder Activities 9-10 of financial products and services. It is execut- Sulaiman Kazaure, also noted that the inclusion ed through volunteer National Youth Service of Corps members in the programme was not Photorama 11 Corps (NYSC) members across the country only a recognition of their invaluable contribu- using the platform of their Community Develop- tions and patriotic zeal, but also an endorsement Financial Literacy 12 ment Service (CDS). of the role of youths as drivers of the Nigerian

The flag-off ceremony was held in June 2017 economy. The Capital Market 13

at the NYSC Orientation Camp Mangu, Plateau Other partners involved in the implementation of Strategic Engagements 14 State after a successful training of the volun- the programme apart from the Federal Ministry teer corps members in twelve pilot states of Youth and Sports and the National Youth Ser- International Financial 15-16 across the six geo-political zones of : vice Corps include the Central Bank of Nigeria, Inclusion News Abia, Anambra, Edo, Gombe, Kano, Kwara, Nigeria Deposit Insurance Corporation, National Lagos, Oyo, Plateau, Rivers, Sokoto, and Pension Commission, Securities and Exchange Nigerian Financial 17-18 Taraba. Commission, the Association of Non-Bank Micro- Inclusion News In his address at the ceremony, Barrister Da- finance Institutions of Nigeria and the National lung said the Peer Educator Programme came Insurance Commission ■ Article: Beyond finan- 19 as a result of the need to reverse the very low cial inclusion: financial patronage of financial products and services in health as a global the country compared with Nigeria’s peers. framework

Contact details 20

Financial Inclusion Status as at December 2016 Source: Enhancing Financial Innovation & Access (EFInA)

August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

SPECIAL INTERVENTIONS

Training of Trainers workshop on NYSC Peer Educator Programme holds in 12 pilot states

The Honorable Minister, Youth and Sports Development, Barrister Solomon Dalung being decorated with the Financial Inclusion jacket by Mr. Kunle Oduyebo, Director Enterprise Development and Promotions Department

Following the flag off ceremony of the NYSC Peer educator programme in , a Training of Trainers (TOT) session held across 12 pilot states in the country including Abia, Anambra, Edo, Gombe, Kano, Kwara, Lagos, Oyo, Plateau, Rivers, Sokoto, and Taraba. The programme trained 30 volunteer corps members from each state who are to serve as financial inclusion ambassadors and carry on the message of financial education to communi- ties in their localities during their weekly Commu- nity Development Service. Facilitators were drawn from the Central Bank of Nigeria, Federal Ministry of Youth and Sports, Association of non-Bank Microfinance Institu- tions in Nigeria, National Pension Commission, Nigeria Deposit Insurance Corporation amongst others. Some of the topics covered during the training Team Plateau during the training session Team Taraba during the training session included: Needs and Wants, Record Keeping and Cash management, Household financial management, Financial Environment, Financial Consumer rights and responsibilities, Frauds and Scams, Me and my business At the end of the sessions, the volunteers were tasked with the responsibility of making presen- tations to their peers in order to assess their understanding of the concepts and measure their ability to deliver the training to their com- munities. The Session is expected to be replicated across the country once the appropriate measures to Team Lagos during the group assignment NYSC Volunteer delivering a presentation to ensure sustainability are put in place ■ his peers in 2 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

National Financial Inclusion Governing Committee holds its Statutory Meetings

10th Financial Inclusion Working Group Meetings The four Financial Inclusion Working Groups held their 10th meeting at the International Training Institute, Abuja on 21st June, 2017. The major highlights of the meetings included an update on execution of workstreams to promote financial inclusion in Ni- geria by respective agencies and key resolutions from the previous meeting. Highlights from the meetings are reported below:

Financial Inclusion Products Working Group (FIPWG) Financial Literacy Working Group (FLWG) 1. National Collateral Regis- try (NCR) Bill: The NCR 1. Financial Education Cur- Office of the CBN report- riculum Development: ed that the number of The Consumer Protection financial institutions Department of the CBN Mr. Obioma Emenike, Heritage Bank registered stood at 114. Cross-section of delegates on Knowledge Ex- reported that the 2nd Phase speaking during the session The Office also reported change Visit to Nigeria attending the meeting of the project had com- as Observers that the secured transac- menced and involved the Special Interventions Work- tions in Movable Assets development of the Teach- Financial Inclusion Channels ing Group (FISIWG) Bill was passed into law ers guide. The launch of the Working Group (FICWG) 1. National Peer Group Edu- on the 31st May, 2017. curriculum and pilot imple- cator Programme on Finan- 1. Facilitation and Provision of mentation was yet to com- 2. Implementation of cial Inclusion: The Federal Internet Access in Nigeria mence. Bancassurance Frame- Ministry of Youth and Sports work: In April 2017, Na- National Communications 2. Mass Sensitization and Development reported that tional Insurance Com- Commission (NCC) reported Awareness: 482 volunteers were trained mission (NAICOM) pub- that over 3,250 km of fiber- in 12 states to create aware-  The representatives of lished the revised optic cable running across the ness among youths on finan- the Bankers’ Commit- Bancassurance guide- six geopolitical zones was being cial inclusion benefits. lines for the insurance deployed through provision of tee stated that all De- sector. subsidy to leading fibre and posit Money Banks 2. Youth Entrepreneurship transmission companies. were preparing to par- Development Programme 3. Harmonization of Data ticipate in the activities Heritage Bank reported that Capturing for National of the World savings the collaboration between Identity Management 2. Shared Agent Net- day scheduled to hold the CBN and Heritage Bank Commission (NIMC): work/super-agent licensing on the 31st October, was aimed at improving ac- NIMC reported that Mer- 2017 cy Cops had pledged to The Banking and Payment cess to finance by youth to support the printing of Stsytems Department of the  GIZ reported that it was develop their entrepreneurial National Identity Cards CBN reported that Capricorn planning to institution- skills. Mr Obioma Emenike for those enrolled for Digital Services had been given alize financial literacy who represented the bank at them. As at June, 2017, an ‘Approval –in-principle’ to training in 8 micro- the meeting said that: operate as a super agent in NIMC had enrolled a finance institutions  1,010 applicants, but addition to IFIS and Innove- using its financial litera- total of 17 million Nigeri- only 310 applicants cives. cy manual. ans. were eligible.

4. Adoption of Microinsur- 3. Targeted financial Educa-  Only 10% of the 310 ance by MFBs and MFIs : 3. NIPOST Agent Banking activi- tion programme for MSMEs applicants got the fund Micro insurance guide- ties: NIPOST reported that 22 and Farmers: MSMEs and whereas others did not lines was still awaiting post offices were currently be- Farmers have been trained due to the following; review by NAICOM execu- ing used as outlets for agent in Birnin Kebbi, Awka with 5 tives. banking by 4 MFBs more locations planned. i. Over 50% did not pick the Offer letter. 4. Target-setting exercise for ii. About 10% rejected the MFBs: The Financial inclusion Offer letter. Secretariat reported that follow- iii. About 5% compromised ing the approval by the Bank- the documents provided. ers’ Committee to breakdown Financial Inclusion targets for iv. 25% are still meeting the DMBs, a similar exercise had conditions in the Offer letter. commenced for Microfinance Head, FIS and Chairperson FIPWG with Cross section of working group mem- Banks. some members of the Products working group bers during the Joint plenary session

3 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

4th Steering Committee Meeting 10th Technical Committee Meeting

Honorable Minister of Youth and Sports Development, Barrister Solo- Chairman, National Financial Inclusion Technical Committee, Dr. mon Dalung with members at the 4th Financial Inclusion Steering Joseph O. Nnnanna with members at the meeting Committee meeting

The 10th meeting of the 3. Strategy Implementation The 4th meeting of the Nation- actions from stamp duties, National Financial Inclusion Progress which evaluated al Financial Inclusion Steering given the impact on finan- Technical Committee held progress made versus the Committee held on Thursday, cial inclusion. on Thursday, June 22, 2017. defined targets in 2016 and 29th June, 2017 .  Regulators and industry highlight key issues. The meeting was chaired by The meeting which was chaired associations to work to- Dr. Okwu Joseph Nnanna, 4. Stakeholder Activities by the Director, Financial Policy gether to urgently increase the Deputy Governor, Finan- with briefs on the activities and Regulations Department of awareness and adoption of cial System Stability, Central of financial inclusion stake- the Central Bank of Nigeria, micro-insurance and mi- Bank of Nigeria (CBN) and holders in 2016. Mr. Kevin Amugo had in at- cro-pension in the country. had in attendance directors/ tendance the Honorable Minis- 5. Recommendations and CBN and the stakeholders equivalents from key agen- ter of Youth and Sports, Barris-  Conclusion summarizing the cies. ter Solomon Dalung as well as to examine the need/ key issues and providing Heads of Regulatory institu- potential of consolidation broad actions to promote tions, Ministries, Departments of microfinance operators financial inclusion in Nigeria. The Head of the Financial and Agencies and Apex associ- in Nigeria in order to Inclusion Secretariat and the At the end of the meeting, ations. strengthen the sub-sector. Secretary to the Committee, the Committee agreed on a The Head, Financial Inclusion  The need to extend the Mrs. Temitope Akin-Fadeyi set of recommendations Secretariat, Mrs. Temitope Akin July 2017 deadline for provided updates on the key that will be presented to the -Fadeyi provided an update on OFIs to capture BVN of all decisions agreed at the pre- Steering Committee for their the key strategic engagements customers. vious meeting. attention ■ and activities and presented During the meeting, the Honor- One of the key features of some of the key issues requir- able Minister, Barister Dalung the meeting was an update ing the committee’s attention thanked the Committee for on the four working group as follows; inviting him, stating that he meetings which held on the  Approval of the 2016 An- decided to attend in person due 21st, June 2017. to the fact the youth have a lot nual Report on the Nation- The 2016 draft annual report to benefit from financial inclu- al Financial Inclusion was also presented to the sion. Strategy Implementation committee highlighting the for publication. He went on to urge the commit- content as follows; tee to carry the youth along as  High-level meeting with 1. Introduction with context they had a lot to benefit from the Federal Government of global financial inclusion financial inclusion as future on the need to promote developments in 2016. leaders of the country ■ financial inclusion and 2. Implementation Environ- digital financial services in ment describing the Nigerian Nigeria. macroeconomic environment  NIPOST to consider ex- and the financial sub-sectors empting electronic trans- in 2016.

4 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

SPOTLIGHT

Bancassurance: NAICOM, CBN issue Referral Guidelines

Bancassurance is an arrangement between banks and ucts, claims or underwriting. The banks shall carry insurance companies such that insurance companies out proper due diligence before partnering with rely on the customer base of banks to sell their prod- insurance companies and they cannot do busi- ucts. For this service, the banks receive a commission ness with insurance companies that do not have for each successful insurance deal, based on their refer- an operational license from National Insurance ral. Commission (NAICOM). They should also ensure The several models adopted across the world include: that only insurance products approved by NAICOM the referral, corporate agency and insurance as a fully are offered to their customers. integrated financial service/joint venture. The model  Approval: To participate in Bancassurance, the currently being used in Nigeria is the referral model, following documents are required from the bank; though it has been tagged as a non-integrated referral model based on the regulations guiding the framework of its operations. It is a system where banks do not take  Extract of Board resolution approving the partici- any risk, the bank only provides the customers and the pation in Bancassurance. actual transaction is done by staff of the insurance com-  A Bancassurance agreement between the bank pany. and the insurance company, stating the Bancas- The universal banking model was repealed by the CBN surance product being offered by the insurance in 2010 and commercial banks were charged with the company, the duties and responsibilities of each responsibility of focusing on their core banking activi- of the parties to the agreement, conditions for the ties. However, the launch of the National Financial Inclu- termination of the agreement, the commission to sion Strategy, with a focus on improving access to finan- be charged for the referral approved by NAICOM, cial products and services to at least 80% adult Nigeri- duration of the contract and conditions for renew- ans in 2020—including a target set for improving access al and dispute resolution mechanism amongst to insurance from 1% in 2010 to 40% in 2020, necessi- other things. tated the introduction of Bancassurance. Once the above listed documents have been ap- The CBN’s first guidelines for the operations of Bancas- proved, the agreement would be forwarded to CBN. surance was introduced in 2015. However, a revised Any other amendment to the agreement must be for- guideline had been released with the following key warded to the CBN. points: Bancassurance promises to be a win-win situation for  Prohibited businesses: Banks must not engage in both the banks and the insurance companies. For the any other model of Bancassurance except that ap- banks, they earn a premium; for the insurance compa- proved by the CBN. They are not allowed to offer nies, they get new business and overall, it improves products similar to the insurance products and the contributions of the insurance sector to the finan- shall not offer free premium on any of their prod- cial system. ucts. It is hoped that this model would effectively contribute  Bancassurance arrangement between banks and to achieving the targets set for the insurance sub- insurance companies: There must be a valid con- sector in the National Financial Inclusion Strategy by tract agreement between the bank and the insur- 2020 ■ ance company in which the bank shall not under- take any form of marketing of the insurance prod-

Source:: https://www.cbn.gov.ng/Out/2017/BSD/Revised CBN Guidelines on Bancassurance March 2017 -final.pdf , https://moneymindz.com/articles/Deposits-and-Bank-Accounts/Fixed-deposits/What-are-the-models-used-in-bancassurance

5 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

INTERNATIONAL COLLABORATION Nigeria hosts 6 (six) member countries of the Alliance for Financial Inclusion (AFI) on a knowledge exchange visit to understudy the Implementation of the National Financial Inclusion Strategy

The Central Bank of Nigeria, a member of the Alliance Commission, Securities and Exchange Commission, for financial Inclusion (AFI) hosted delegates from Six National Insurance Commission. (6) AFI member countries: Mozambique, Senegal, Leso- There were also sessions on the structure, coordina- tho, Seychelles, Sierra Leone, and Bhutan on a tion processes and monitoring and evaluation strategy knowledge exchange visit to Nigeria in June, 2017 of the Financial Inclusion Secretariat. AFI is a global network of policymakers/regulators that The delegates also participated as observers at the have been instrumental to developing and promoting 10th National Financial Inclusion Working Group and financial Inclusion strategies in the world. Technical Committee Meetings, where they experi- The purpose of the delegates’ visit was to comprehen- enced how the Working Groups execute their specific sively understudy the National Financial Inclusion mandates and terms of reference. Strategy development and Implementation processes The programme also featured field trips to some or- in the country with an outlook to support similar efforts ganizations, including Hasal Microfinance Bank and in their respective countries. Diamond Bank.

The 5-day programme was coordinated by the Finan- The overall feedback from the delegates was that the cial Inclusion Secretariat. Some of the highlights of the implementation of the National Financial Inclusion programme included: Strategy was well structured and that Nigeria’s experi- Technical sessions were presented on implementation ence could serve as a great learning platform for other initiatives that had linkages to promoting financial in- African countries. They particularly applauded the clusion. The sessions were facilitated by both relevant coordination and commitment of stakeholders to- stakeholders including Nigerian Postal Services wards the achievement of the overall goal ■ (NIPOST), Nigerian Deposit Insurance Corporation (NDIC), Federal Ministry of Education, National Pension

Delegates with the Director, Development Finance Department, Dr. Mudasir Olaitan (middle), the Head, Financial Inclusion Secre- tariat and other staff of the Central Bank of Nigeria

6 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

MICROFINANCE SECTOR 10 microfinance banks account for 40% of industry loan — CBN

Speaking at the event , the Director MFBs should consider the provision Other Financial Institution and Super- of digital financial services through visory Department, (CBN) the use of Fintech companies as a The CBN has disclosed that the top ten (10) Mrs. Tokunbo Martins who was repre- possible strategic options for expand- out of 991 Microfinance Banks (MFBs) ac- sented by Mr. Bassey Ekpo said that ing outreach and incr4easing impact. count for 40 per cent of total loans in the mi- total industry credit and asset of Also, the chairman NAMBLag re- crofinance subsector. MFBs stood at a meager N214.32 marked that they were still working to billion and N365.51 billion respec- The disclosure was made at the second annu- meet the CBN deadline for August 1, tively as at 31st December 2016, al professional seminar organized by National BVN registration of customers in col- adding that this was considered Association of Microfinance Banks, Lagos laboration with NIBSS. According to grossly inadequate given Nigeria’s State Chapter (NAMBLag) in conjunction with him, the Lagos arm of NAMB had population of 170 million which large- CA Compuconsult &Associates held on June deployed five BVN machines to regis- ly comprised of people at the bottom 30 and July 1, 2017 at Kakanfo Inn Confer- ters customers in Lagos even though of the social pyramid. ence Centre, Ibadan. the deadline appears very aquiline ■ The Director further advised that The seminar themed ‘Strategic Options for Sustainability of Microfinance Operations in a Source: http://www.vanguardngr.com/2017/07/10-microfinance-banks-account-40-industry-loan-cbn/ Challenging Environment” focused on key rea- sons for low adoption of the Nigerian Sustaina- unveils state-owned Microfinance ble Banking Principle by the MFBs compared Bank “IBILE” with the Deposit Money Banks who had fully embraced the principle ■

CBN Extends BVN Enrolment for MFBs

The Central Bank of Nigeria has extended the Bank Verification Number (BVN) enrol- ment deadline for Other Financial Institu- tions customers which includes MFBs from August 1, 2017 to December 31, 2017. Mr Akinwunmi Ambode—Governor, Lagos State Also, it said that with effect from January 1, 2018, all customers without BVN linked to As part of its efforts to reduce poverty and unemployment, the Lagos their account would no longer be entitled to State Government has established a microfinance bank called Ibile Bank. debit operations. Licensed by the Central Bank of Nigeria (CBN) in January, 2017 and located The extension of the BVN registration dead- in Ikeja, Ibile microfinance bank promises to be a main vehicle for develop- line was made following appeals from vari- ment for the Lagos State Government. ous institutions and industry stakeholders Speaking at the unveiling ceremony, Mr Akinyemi Ashade, Lagos State Com- to allow for full customer enrolment. missioner for Finance explained that the Bank would assist the Micro, Small and Medium Enterprises (MSME) sector with loans particularly for small- The announcement was made in a state- scale businesses who lack the necessary capital for start up. Mr Kolawole ment issued in August 2017 by Director, Taiwo, the Chairman of the Bank and immediate past Deputy Speaker of the Other Financial Institutions Supervision De- State House of Assembly also noted that the bank’s main source of dis- partment, Mrs. Tokunbo Martins ■ bursement would be the N25 Billion Lagos State Employment Trust Fund (LSETF) established by the Governor of the State, Mr Akinwunmi Ambode four years ago ■

Source: http://www.vanguardngr.com/2017/08/cbn-extends- Source: https://www.thisdaylive.com/index.php/2017/07/04/lagos-unveils-state-owned- bvn-enrolment-mfbs-others-dec-31/ ibile-mfb/

7 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

INSURANCE SECTOR 600,000 dwellers from benefit from Health Insurance Scheme

Mr. Abdulfatah Ahmed—Governor, Kwara State

Mr. Abdulfatah Ahmed, Governor of Kwa- that indigenes of the State had access preneurs. He noted that over ra state has disclosed that about to quality and affordable health care, 50,000 businesses had benefitted 600,000 rural dwellers in his state now the State Government invested in the from the programme. have access to health services under renovation of five (5) general hospitals According to him, an implementa- the Kwara State Community Health In- and fully equipped them with state of- tion Committee had been set up to surance Scheme. the-art facilities. study the provisions contained in The Governor, represented by the Secre- Alhaji Isiaka also alluded to the fact the Health Insurance Scheme Law tary to the Government, Alhaji Isiaka that the administration of the State 2017, isolate provisions that re- Gold made this pronouncement at the was keen on developing the skills of quire immediate implementation investiture/presentation of Lion Ayobola young entrepreneurs, and has there- and take necessary actions that will Samuel as the District-Governor of Lions fore set up credit support schemes lead to the establishment of a Kwa- Club International. like the Micro, Small and Medium En- ra State Health Insurance Agency ■ He also stated that in order to ensure terprises Scheme offering loans with single digit interest rate to the entre-

Source: http://leadership.ng/2017/08/07/600-000-rural-dwellers-benefit-kwara-health-insurance-scheme/

FBN Insurance gets International NAICOM to Abolish Annual License Renewal recognition By Insurance Brokers FBN Insurance, Limited, a member of FBN Holdings Compa- NAICOM has revealed that it is set to abolish annual brokers’ ny was awarded with the Sanlam Emerging Markets (SEM) license renewing and replace it with longer life span licensing cup of nations at the 2017 Sanlam Group Chief Executive programme for insurance brokers. award which held at the firm’s leadership conference in The Insurance sector regulator at the recently concluded Na- Capetown, South Africa. The award was conceptualized to tional Insurance Conference stated that despite initial stance provide motivation to operators in various countries to meet that brokers should renew their operating licenses annually, targets and deliver sustainable growth. the process had become cumbersome to the Commission In a statement released by FBN Insurance, Mrs. Elizabeth itself. Agugoh– Head Marketing and Communications stated that The Deputy Commissioner for Insurance Technical, Mr. Sun- the company had taken huge steps since its inception seven day Thomas stated that this decision was taken considering (7) years ago to ensure that they performed optimally to the complaints of brokers . He also stated that the Commis- provide responsive insurance coverage to the Nigerian mar- sion was striving to expand the distribution channels for micro ket and now had 200,000 policies in its books ■ and retail insurance customers ■

Source: https://guardian.ng/business-services/insurance/fbninsurance-gets- Source: https://www.thisdaylive.com/index.php/2017/07/19/naicom-to-abolish- international-recognition/ annual-licence-renewal-by-insurance-brokers/ 8 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

STAKEHOLDER ACTIVITIES CFAN holds workshop to commemorate International Day of Cooperatives

The 2017 International day of cooper- Agencies. atives held on July 1, 2017 with a The Minister of Agriculture was global focus on ‘inclusion’ and the represented by the Director of Co- theme “Cooperatives Ensure No one operatives in the Ministry. The Min- is Left Behind”. ister in his goodwill message ad- In commemoration of the day, the monished cooperative societies to National Cooperatives Financing be of good conduct in order to Agency of Nigeria (CFAN) held a work- achieve the goal of making life shop at the old parade ground in Abu- better for its members. ja. The event commenced at Also, there was a goodwill mes- 11:00am with the National Anthem sage by the Head, Financial Inclu- followed by an opening remark by Mr. sion Secretariat, Mrs. Temitope Emmanuel Atama, Executive Secre- Akin-Fadeyi. She highlighted the tary/CEO,CFAN who stated the signifi- main objectives of Co-operative cance of the day to cooperators. He Societies which includes; generat- gave a brief background to the United ing income for its members, im- Nations International Day of Coopera- proving members standard of liv- tives and how Cooperative societies ing, creating empowerment, help- had fared over the years. In attend- ing individuals achieve their goals ance were; Deposit Money Banks Head, Financial Inclusion Secretariat, Mrs. Temi- within a set time and generating tope Akin-Fadeyi delivering a goodwill message (DMBs), Microfinance Banks (MFBs), funds for capital projects where during the event. Insurance Companies, Regulators the co-operatives operate ■ and representatives of Government

Securities and Exchange Commission (SEC) holds financial inclusion sensitization programme in Bwari Area Council, Abuja

geria Deposit Insurance Corporation, The following papers were presented: Securities and Exchange Commission  Capital Market, a Veritable Tool and some Ministries participated during of Financial Inclusion - Securities the campaign. and Exchange Commission The Chairman, Bwari Area Council who was represented by the Vice Chairman  The importance and benefits of Mr. Jafar Gimba delivered the welcome the National pension scheme— address and emphasized that being National Pension Commission financially included was important to  The importance and benefits of The Securities and Exchange Commission investing in productive activities. insurance products—National in collaboration with Bwari Area Council Insurance Commission. organized a Financial Inclusion Sensitiza- Mr. Attah Joseph of the financial Inclu- tion Programme for Nomads and Market sion Secretariat, CBN delivered the  Roles and responsibilities of people from Bwari, Dutse and Kubwa coun- Good Will Message in which he high- NDIC in protecting banks and cil respectively. The programme took place lighted the importance of financial in- their customers—Nigeria Deposit at the conference room of the Local Gov- clusion in Nigeria stating that a target Insurance Commission. ernment Council secretariat, Bwari on 27th to increase financial inclusion from At the end of the programme, the July, 2017. 46.3% in 2010 to 20% in 2020 had been set in the National Financial inclu- Security and Exchange commission The aim of the sensitization was to create sion Strategy. appealed that the participants should awareness on financial inclusion products pass on the message to others for such as Capital Market, Insurance, Pen- Prior to the presentations, a video clip the benefit of all ■ sion, Saving and Credits. was shown on easy money which cau- tioned people to beware of fraudsters Representatives of the Central Bank of when engaging in any business or fi- Nigeria, the National Pensions Commis- nancial activities . sion, National Insurance Commission, Ni-

9 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

STAKEHOLDER ACTIVITIES E-PPAN holds 2017 E-Government summit The 2017 E-Government Summit orga-  Exploring the Frontiers of Digital nized by Electronic Payment Providers Finance Association of Nigeria (E-PPAN) took place from 18th to 19th July, 2017 in  Mobile Big data Analytics Abuja.  Big Data Analytics: Driving the next wave of e-government The Summit is a platform for regula- tors, providers and industry players to At the end of the event, the following discuss challenges, share experiences were documented: with a view to providing solutions on  Big data and digital finance ana- topics related to E-Government in Nige- Barrister Abdur-Raheem Adebayo Shittu, Honarable ria. lytics impact directly on all as- Minister of Communications delivering his keynote pects of National Development address at Summit The two-day Summit with the theme: and planning. “E-Government: Catalyst to Economic  The need to stimulate and con-  The need for state governments Recovery and Sustainable Develop- nect MSMEs with Government to share resources for cost effi- ment”, was declared open by the Minis- policies, interventions and frame- ciency in driving e-government ter of Communications, Barrister works through e-government tech- Adebayo Shittu.  A call to private sector to collabo- nologies for accelerated econom- rate with the Federal Govern- ic growth. ment on the implementation of Technical sessions delivered at the  The need to aggregate and auto- executive orders for ease of do- summit include: mate Business to Government ing business in Nigeria  Engineering Government Process- (B2G), Government to Business  A call to Federal Government to es for public service efficiency & (G2B) and Government to Con- leverage on the tele-density and economic development tractors (G2C) processes. the demographics in the country  Beyond Bitcoin: Enabling Smart  The need to define interoperable to design citizen friendly e- Government, Using Block chain standards for big data capture, Government strategies ■ Technology processing and storage for Na- tional Development.  E-Government Futuristic Outlook: Using Technology to move Nigeria Forward Ciuci International holds 2nd Retail Banking Workshop

During the session, technical pa- At the end of the workshop pers were delivered on the follow- some key recommendations ing: were identified to address im-  The realities about Access to pediments to retail banking Retail Credit and Financial adoption in Nigeria as follows: Services  Deployment of mobile BVN  Interventions of the Central registration devices to Bank of Nigeria to drive Finan- scale up enrolment in the Facilitators at the Workshop cial Inclusion and access to rural areas. Credit”. The Cuici International held its 2nd Retail  Collaborative efforts geared Banking Workshop on the June 15, 2017 in  Emerging Trends in Nigeria’s towards improving mobile Lagos. Retail Banking Industry money adoption. The workshop aimed to provide a platform and  Lending to the Underserved”:  Fintech companies to col- collaborative environment for top executives how microcredit can be deliv- laborate with banks to- to deliberate on key issues affecting the retail ered to the underserved seg- wards robust information banking industry ment of the society. security strategies to en- gender customer trust in In focus at the workshop was retail lending  Are Nigerian Banks Ready for the industry ■ and financial inclusion as panacea for inclu- Retail Banking: Key challeng- sive growth; being the key recovery plan of the es facing the retail banking current Nigerian Government. performance.

10 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER Photorama: AFI Knowledge Exchange Visit

Chief Executive Officer, Hasal Microfinance Bank Mr. Rogers Nwoke Delegates learn about Diamond Bank Financial Inclusion products with the delegates Knowledge Exchange Visit and services during a courtesy call to the Bank

Mr. Musa Jimoh, Banking & Payment Systems Department- CBN delivering a Delegates visit the CBN Currency Museum technical paper to the delegates

Delegates observe the 10th National Financial Inclusion Technical Knowledge Exchange delegates during a presentation on Nigeria’s Committee meeting proceedings Financial Inclusion policies.

Presentation of gifts to AFI delegates during the farewell ceremony AFI Delegates presents an appreciation gift to Financial Inclusion Secretariat during the farewell ceremony 11 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

FINANCIAL LITERACY

NSE Unveils X- ACADEMY to push financial literacy

The Nigerian Stock Exchange tions that will ensure partici- (NSE) has unveiled a pants are abreast with trends in knowledge-based platform , X- the rapidly evolving financial Academy that offers a wide markets.” range of courses that will be facilitated by certified subject Also Speaking at the event,Ms matter experts to equip inves- Pai Gamde, Acting Head, Corpo- tors and the general public with rate Services Division, said: “X- the knowledge of the products Academy is a crucial step to en- and services of the capital mar- hancing financial literacy levels ket for increased patronage and in Nigeria and equipping profes- informed financial decisions. sionals with requisite skill sets to deliver innovative solutions for Speaking at the unveiling of the the challenges confronting our event, Mr. Oscar Onyema, CEO financial sector ■ of NSE said that “X-Academy

would provide individuals and businesses with a robust and Mr. Oscar Onyema, - CEO, NSE effective array of training solu-

Read more at: http://www.vanguardngr.com/2017/06/nse-pushes-financial-literacy-launch-x-academy/

Access Bank: Enhancing Family Tie Through Savings Connection

The Scheme is aimed at improving family sponsor, must be funded the savings habit of customers by with a minimum of N20,000 and encouraging family members to save family sponsors were expected to together with attendant benefits have a valid means of identification such as high interest rates and fami- (e.g. National Identification card, ly rewards. International Passport, Driver’s License or Permanent Voters Card). Speaking for the Bank, the Executive Director, Personal Banking, Mr. Vic- In addition, the Managing Director, tor Etuokwu stated that the scheme Mr. Wigwe stated that the bank’s which comes under the Family Bank- focus will continue to evolve as ing Segment of the Bank will have customers’ expectations and needs numerous value propositions for evolve. He highlighted that ‘Over customers who sign up for the prod- the years, Access Bank had fo- uct including education and advisory cused on enhancing its technologi- services. cal advantage based on the convic- Mr. Herbert Wigwe tion that innovation will remain one GMD/CEO—Access Bank PLC The Scheme requires a minimum of of key drivers of competitiveness in four family members banking with the banking industry’■ As part of Access’ Bank’s plans to Access Bank including partners, chil- support the achievement of 80% dren, aunts, uncles, cousins and financial inclusion in Nigeria by grandparents. Mr. Etuokwu stated 2020, it has launched a scheme that all accounts which must have a known as ‘Family Savings Scheme’.

Source: https://www.google.com.ng/url?sa=t&source=web&rct=j&url=http://leadership.ng/2017/06/07/access-bank-enhancing-family-tie-savings- connection/&ved=0ahUKEwjp1L_SgqvUAhUE6xQKHZDpAqQQqQIILSgBMAQ&usg=AFQjCNG1h2YVhttEeV2EWg41ZqXBORB7Vg&sig2=Uc1wthVwhzUr2sG7bOTs9g 12 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

THE CAPITAL MARKET

The Sukuk : An Investment Opportunity for Nigerians

platform. With a minimum subscrip- had a successful outing of 120 per tion amount of N10,000 it targets cent subscription. retail and institutional investors. In 2016, global sukuk market wit- The DMO in it’s remark about the nessed a rebound after three con- bond said “The introduction of Sukuk secutive years of decline following its is not only seen as a means of raising peak in 2012. Global sukuk issuance investible capital for the government posted a solid growth of 13.2% from and promotion of greater financial previous year to reach USD74.8 bil- inclusion but as part of the plan to lion. fast track the development of infra- It is glaring that there is therefore a structure and engage in purposeful huge, unmet demand for Sukuk issu- and project-tied capital raising”. ances from high-potential economies Market evidence had shown the high like Nigeria, especially in the view of potential of the sukuk bond towards the fact that Nigeria is home to the garnering funds and a profitable in- largest Muslim population in the sub- vestment opportunities to investors. Saharan Africa, with also one of Afri- An example was when ca’s fastest-growing corporate bank- issued a N10 billion Sukuk in 2013, it ing sector and consumer population■ Ms. Patience Oniha - Director –General, Debt Mnagement Office Source: https://www.thisdaylive.com/index.php/2017/06/21/the-sukuk-investment-opportunity/

The Debt Management Office, (DMO) Global Sukuk Issuance has been on the decline since 2012 with the highest Sukuk issuance in Malaysia accounting for 46.4% of the global market. in its quest to mobilize resources from the general public to finance the short- falls in the 2017 budget has dis- closed plans to access a N100billion fund through issuing of Sukuk.

Sukuk is an Islamic bond, structured in such a way as to generate returns to investors without infringing Islamic law that prohibits riba or interest. Sukuk is said to be ‘Shariah compli- ant’ because it eliminates the interest elements that are associated with a conventional bond.

This diversified effort by the DMO is part of its 2013–2017 strategic plan to develop alternative sources of rais- ing finance from a wider range of in- vestors.

The 7-year tenor debt instrument will be traded on the Nigerian Stock Ex- change (NSE) and the Financial Mar- kets Dealers Quotation (FMDQ) Securi- ties Exchange Over the Counter (OTC)

Source: http://www.mifc.com/index.php?rp=sukuk_report_270317.pdf

13 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

STRATEGIC ENGAGEMENTS

Financial Inclusion Secretariat Undertakes Target Setting Exercise for the Microfinance Sub-sector

As part of efforts to accelerate ac- Accordingly, annual targets for new cess to financial services in Nigeria, credit and savings customers as well the Financial Inclusion Secretariat as access points were set for the peri- has undertaken engagements visits od 2017-2020. & target setting exercise for MFBs in At the end of the engagements the South South, South East, South West MFBs were given opportunity to dis- and North Central geo-political zones cuss challenges they faced in driving of Nigeria from 5th June 2017 to financial inclusion efforts., among 16th June 2017. The stakeholders which the following were key: that were sensitized included the State Governors, Central Bank of Some of the key challenges discussed Nigeria Branches and microfinance were as follows: bank staff in the zones.  Issues around BVN enrolment The exercise took place in the South deadline for all MFBs customers West (Lagos), South East (Imo),  Lack of Financial Literacy South South (Uyo), North Central (Abuja), North East (Bauchi) and  Unclear State-Level Tax for Micro- North West (Kano). It focused on finance Banks best ways of improving the level of  Security issues involved in serving financial inclusion in the State and to the rural areas also acquaint the MFBs on their re- quired input towards achieving Na-  Lack of Infrastructure – Connectiv- tional Financial Inclusion Strategy ity, roads etc. ■ targets. Participants during the Target-Setting Exercise

Pre-disbursement meeting held to support disbursement of 2% MSMEDF set aside for People with Disabilities.

The Financial Inclusion Secretariat and scaling up of disbursement of 2% at the last meeting in particular, the (FIS) in her resolve to fast track the Micro, Small and Medium Enterprises use of the Entrepreneurship Develop- delayed commencement and scaling Development Fund (MSMEDF) to per- ment Centres and collaboration with up of the disbursement of the 2% sons With Disabilities (PWDs). related Agencies to train and equip Micro, Small and Medium Enterpris- PWDs with skills and capacities to In attendance at the meeting were Eco- es Development Fund (MSMEDF) set bank, First Bank and Nigeria Police access and manage MSMEDF loans aside for the economic empower- Force (NPF), Fortis, Lapo and Letshego and run their businesses. ment of economically active Persons Microfinance Banks. JONAPWD was JONAPWD on their part beckoned on with Disabilities (PWDs), held a represented by the National President, the CBN and PFIs to re-evaluate meeting with Participating Financial National Vice President, National Chair- some of the terms and conditions of Institutions (PFIs) and National Offi- man, Forum of JONAPWD Chairmen MSMEDF, including interest rate, cials of the Joint National Associa- and Technical Adviser to the National bearing in mind that PWDs incur tion of Persons With Disabilities President. more costs while running their busi- (JONAPWD) on 16th August, 2017 at ness than the able bodied. the CBN Head Office. During the meeting, some of the Partici- pating Financial Institutions requested At the end of the meeting, it was The purpose of the meeting was to for the approval of their submitted list agreed that JONAPWD would prepare create a forum where Participating of PWD applications earlier submitted a technical paper on a Group Model Financial Institutions and the Nation- to CBN to enable them disburse . and Support System suitable to al Officials of the JONAPWD would The PFI’s also called on CBN to fast PWDs which would be presented at brainstorm on solutions to the chal- the next engagement ■ lenges impeding commencement track some of the resolutions reached

14 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

INTERNATIONAL FINANCIAL INCLUSION NEWS

First Policy Forum on Cybersecurity and Financial Inclusion Co-hosted by Bank Negara Malaysia and Alli- ance for Financial Inclusion

The Alliance for Financial Inclusion victims, particularly within sectors stones without technology and fur- (AFI) and Bank Negara of Malaysia relevant to financial inclusion and ther cited AFI’s commitment to- co-hosted the first—ever policy in the context of developing coun- wards bringing new technologies forum on Cybersecurity and its tries. together with its members to devel- linkages to Financial Inclusion on Highlights from the Forum includes op solutions that deals with emerg- 1st and 2nd of August, 2017 in remarks from Mr. Adhari Belal Din, ing challenges. Kuala Lumpur, Malaysia. Assistant Governor of the Bank Negara Malaysia (BNM), Dr. Alfred Mr. Mumba, in his remark reiterat- Banking the unbanked through Hannig, AFI’s Executive Director ed the importance of the event to digital financial services could cre- and Mr. Norbert Mumba, AFI’s foster dialogue between financial ate more opportunities and incen- Deputy Executive Director. policymakers and private sector tives for hackers to exploit the low innovators to understand how cy- financial and technological literacy Mr. Adhari Belal Din in his remarks bersecurity connects to financial of the poor to commit cyber- at the event said that “the fast- inclusion, and leverage on collabo- attacks, robbing them off the little changing digital landscape has rative solutions to safeguard the wealth they had. These issues of brought the financially excluded most vulnerable users of digital cybersecurity have come to the and underserved populations into financial services”. fore in advancing financial inclu- the formal financial system, bring- sion by financial services provid- ing about a positive impact on eco- According to AFI, the Forum had ers, policymakers and regulators. nomic growth and stability”. He been developed in recognition of also added that he believed the the linkages between cybersecurity The policy forum attended by over forum would be a valuable plat- and financial inclusion and based 130 financial policy regulators form for members to learn and on strong AFI member demand as from 40 countries around the share their knowledge and experi- highlighted in a recent AFI member globe was titled “Cybersecurity: ences as well as generate new survey, which flags cybersecurity as Safeguarding the Future for Inno- ideas, approaches and innovations being one of three top areas within vative Financial Inclusion” aimed as take-aways that could be emu- the realm of new financial technolo- to provide an overview of global lated in your respective countries. gies where members would like to cybersecurity risks, typologies of learn more ■ cyber events and the behaviors Dr. Hannig highlighted the impossi- and profiles of cyber attackers and bility of financial inclusion mile-

Executive Director AFI - Dr. Alfred Hannig at the Policy forum on Cybersecurity and Financial Inclusion—Kuala Lumpur, Malaysia

Source : https://www.afi-global.org/news/2017/08/bank-negara-malaysia-and-afi-co-host-first-policy-forum-cybersecurity-and-financial

15 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

INTERNATIONAL FINANCIAL INCLUSION NEWS

Indian based IFMR Capital, plans fund to invest in IMF Urges Banks firms focused on financial inclusion to Invest In Crypto- currencies

The Indian based Financial services firm, Institute for Financial Management Fi- The International Monetary Fund in nance (IFMR) is planning to set up a fund to increase the capital from offshore June, 2017 released a staff discus- markets for investing in businesses focused on financial inclusion. sion note in which contributors beckon According to a senior executive at the firm, the fund will be structured in such a on financial institutions to watch keen- way as to keep in mind specific needs of international investors. The fund is one of ly the growing trends in cryptocurrency two new funds to be added to the three other funds raised by IFMR so far as the (a digital or virtual currency which company aims to raise up to Rs850 Crore. uses codes or cryptography to secure IFMR capital funds typically invest in debt instruments of companies focused on transactions) financial inclusion such as microfinance, small business loan finance etc. According to the report, increasing advances in digital technology could Source : http://www.livemint.com/Industry/Ua8UescdjrU6pLF8YnCwGP/IFMR-Capital-plans-fund-to-invest-in-firms-focused-on-financ.html change the financial sector landscape New IRC report: Financial inclusion critical for refu- and ultimately provide solutions for consumers related to trust, security gees, other new Americans and safety of financial services. The report also highlighted the fact A new report by the International Rescue Committee (IRC) has that while cryptocurrency possessed identified financial inclusion as key to the lives of refugees across the ability to improve cross-border America and elsewhere. payments and provided cost-efficient The report, launched in May 2017 and funded by JP Morgan services, regulatory authorities still Chase entitled ‘Financial Capability for New Americans: Lessons from early inter- had a role to play in balancing efficien- ventions with refugees’ analyzed over 2400 refugee households and infered that cy concerns and stability tradeoffs. because refugees were adopting to new environments, undergoing financial changes and learnings in their first couple of years, they were amenable to inter- The risk of cyber attacks, money laun- ventions on financial capability. dering and terrorism must however be curtailed if banks were to integrate The report highlighted six (6) key recommendations to help aid practitioners pro- cryptocurrency successfully according vide adequate financial learning to new American families. These recommenda- to the report ■ tions include; Pay special attention to the needs of women, explore ways to offer integrated financial products, intervene early, keep goals realistic, intervene fre- quently and use data ■ Source : http://www.investopedia.com/news/imf- blockchain-banks-invest-cryptocurrency- Source:https://www.rescue.org/press-release/new-irc-report-financial-inclusion-critical-refugees-other-new-americans blockchain/

Juvo raises $40 million to bring financial Global Body Praises India Aadhaar Card on Financial inclusion to emerging markets Inclusion

of india that stores an individual's As part of its efforts to two of mobile service. personal details in the government improve financial inclu- Juvo loans help users database. Citizens can use the card sion, an American based keep their mobile phones to open an account, receive Gov- startup, Juvo is aiming to connected but also ena- ernment’s welfare and citizen ser- help mobile users aquire bles borrowers gain ac- vices , digital life certificate, receive micro loans by enabling cess to larger amounts of The Financial Stability Board pension among other benefits. an improved financial (FSB) , in a progress report on credit while building their The FSB has been established to status. The company is efforts to assess and address credit score. Juvo joins coordinate at the international decline in correspondent bank- working with mobile op- companies like Branch level, the work of national financial ing praises India’s Aadhaar erators by providing pre- and Tala in bringing finan- authorities and global standard- System for expanding banking paid customers the op- cial services to the under- setting bodies in order to develop reach and promoting less use portunity to borrow small served in developing mar- of cash in the country . and promote the implementation amounts of money to kets ■ of effective regulatory, supervisory pay for an extra day or The Aadhaar card is a biometric and other financial sector poli- card issued by the government cies ■

Source : https://techcrunch.com/2017/08/01/juvo-40-million-nea-wing- Source : http://indianexpress.com/article/india/aadhaar-gets-praise-at-global-forum-for- venture-capital/ financial-inclusion-4738326/

16 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER NIGERIAN FINANCIAL INCLUSION NEWS

FCMB opens banking hub, youth platform at UNIBEN A product aimed at encouraging youth participation in the formal financial system by demystifying banking and removing cumbersome account opening requirements has been developed by FCMB. The youth account known as Flexx has been made available to students of University of Benin (UNIBEN) through a mini branch tagged as Flexx Hub. The branch has been designed to provide access to financial services to young people between the age of 16 and 25. The services available include a banking App, a card, an account and these services provide customers with varied experiences centered on Fun, Future and Banking ■

Source : https://guardian.ng/business-services/money/fcmb-opens-banking-hub-youth-platform-at-uniben/

Takaful Insurance consumers to get back part of their premium in the absence of claim

According to the Head of Halal Takaful Nigeria, Hajia Thaibar Adeniran, consumers of Takaful insurance stand to benefit from unclaimed premiums at the end of a business year. Speaking to vanguard newspapers, Hajia Adeniran stated that the Islamic insurance window of Cornerstone Insurance Plc had paid over N6.5million to some of its customers as their bonus at the end of the 2015 financial year. She went on to state that this model was centered on the principles of transparency as imbibed from Islamic values such as piety, brotherhood, charity, mutual guarantee and community wel- fare. The purpose of this model according to Hajiya Adeniran was to engender public trust and belief in the insurance system, particularly Takaful ■

Source: https://www.thisdaylive.com/index.php/2017/06/07/dmo-giving-nigerians-a-bond/

Fintech sector, having positive disruption – Emetarom, AppZone boss

According to the Executive Director, Business Operations/Expansion at AppZone Group, the level of risk associated with lending was one of the main reasons for lack of access to credit in Nigeria.

During an interview with Vanguard Newspapers, Mr. Emeka Emetarom stated that AppZone was working to develop exciting solutions that would have a posi- tive disruption on financial inclusion in Nigeria. He stated the solution was de- signed to enable MFBs recover defaulting loans seamlessly.

He noted that the prospects of improving access to credit would be greater for MFBs if they were confident that they would have better performing loans and this platform would support this objective ■

Source: https://www.vanguardngr.com/2017/06/fintech-sector-positive-disruption-emetarom-appzone-boss/

NIBSS Issues 29.4 million BVNs to customers

The Nigerian Inter Bank Settlement System (NIBSS) has disclosed that a total of 29.4 mil- lion Bank Verification Number (BVN) cards had been issued as at June, 2017. It reported that the current trend meant that BVN registration would witness an astronomical growth with the extension of the exercise to Other Financial institutions as mandated by the Central Bank of Nigeria.

It is expected that the BVN would minimize fraud and money laundering in the financial sys- tem while ultimately supporting financial inclusion in Nigeria ■

Source: http://leadership.ng/2017/06/25/nibss-issues-29-4m-bvns-customers/ 17 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

NIGERIAN FINANCIAL INCLUSION NEWS

Newly elected NAMB President Pledges to Reposition the Association to Drive Finan- cial Inclusion.

The newly elected President of the National Association of Microfinance Banks, Mr. Rogers Nwoke (MD-Hasal Microfinance Bank) has pledged to reposition the associa- tion to drive financial inclusion in Nigeria.

Speaking after his election, Mr. Nwoke stated that there was an urgent need to re- vive NAMB while integrating its functional organs to encourage them to pursue a common cause for sustainable growth. He noted that the Board of Trustees (BOT), National Executive Council (NEC) and the Central Executive Committee (CEC) were key to the operations of the Association. He noted that in order for the Association to succeed in promoting financial inclusion in Nigeria, strategic partnerships with development institutions were critical and would be explored by the association ■

Source : https://www.vanguardngr.com/2017/08/nwoke-pledges-reposition-namb-drive-financial-inclusion/

Citi grants N500m loan to Promote Microfinance and Financial Inclusion In a bid to drive the development of the microfinance sector and support the achievement of financial inclusion in Nigeria, Citi Nigeria has granted a N500 million loan to Accion Microfinance Bank in Nigeria.

The Chief Executive Officer, Mr. Akin Dawodu in a statement released by the Bank men- tioned that citibank was pleased to partner with institutions such as Accion Microfinance Bank as part of its efforts to support the implementation of the National Financial Inclu- sion Strategy. He noted that the partnership would avail SMEs and micro entrepreneurs the opportunity to access funds to grow their businesses and ultimately contribute to the economic development of the country.

The Managing Director of Accion Microfinance Bank, Mrs. Bunmi Lawson while appreciat- ing the partnership and support of Citibank beckoned on other financial institutions to emulate Citibank and partner with microfinance banks to meet the credit needs of the average Nigerian entrepreneur ■

Source : https://guardian.ng/business-services/citi-grants-n500m-loan-to-promote-microfinance-financial-inclusion/

CBN, Nigeria ENERDC ) Engage Teachers on Financial Inclusion Syllabus Following the development and infusion of financial education into the curricula of basic and senior secondary schools, the Central Bank of Nigeria in collaboration with the Nigerian Educational Research and Development Council (NERC) organized a work- shop for the development and review of a teachers guide.

Speaking during the Workshop, the Director, Consumer Protection Department, CBN, Hajiya Umma Dutse reaffirmed the commitment of the Central Bank of Nigeria to ensur- ing that financial education was extended to schools in a bid to promote financial inclu- sion.

The Executive Secretary, NERDC, Prof. Ismail Junaidu reiterated that the workshop had been organized to review the teacher’s guide. He also stated that the teachers’ guide would be used to train teachers across the country who would be responsible for providing financial education to the students. Prof. Junaidu disclosed that the main objective of the overall financial education curriculum development process was to re- orient the young to enable them effectively manage financial resources ■

Source: https://www.thisdaylive.com/index.php/2017/07/13/cbn-nerdc-engage-teachers-on-financial-inclusion-syllabus/ 18 August 2017, Volume 2, Issue 3 FINANCIAL INCLUSION NEWSLETTER

Beyond Financial Inclusion: Financial Health as a Global Framework

A relatively new word in of time are better able to raise more funds in time of need. informal sources and tools. the financial inclusion parlance is financial III. Manage existing debts and access to potential resources – an For a better understanding health. According to the individual’s ability to manage existing debts and the ability to access of the study, four external Center for Financial Ser- additional funds through formal and informal sources. A manageable factors on understanding vices Innovation (CFSI), debt load is one in which the individual is able to meet up with his/ financial health in a devel- financial health is her loan obligation as at when due without difficulty. The research oping world were raised: “achieved when an individ- indicates that the ability to manage one’s debt load affects how easily ual’s daily systems help an individual can raise funds in time of need. While the amount of I. Absolute income level – build the financial resili- financial health is difficult ence to weather shocks, or near impossible to and the ability to pursue achieve for those living in financial goals”. abject poverty. II. Income and expense The CFSI carried out a volatility – changes in in- research using two devel- come amounts can make it oping countries leading in impossible to plan one’s financial inclusion- India financial life. III. Social network – an indi- and Kenya as case stud- vidual’s range of family, ies. The study revealed friends, and community that global financial health contacts that are readily can be achieved when an available for financial assis- individual is able to meet tance. six major criteria. The con- IV. Financial role – an indi- clusion from the research vidual’s status within their is highlighted below: household (e.g. dependent, Source: Center for Financial Services Innovation (CFSI) contributor, key financial I. Balance income and decision maker) would de- termine how well they are expenses – an individual’s resources an individual could raise may be unquantifiable, the re- able to save. ability to balance monies search suggests that an individual’s income, savings, social network earned (income) and mon- (friends, family, inner circle), and access to formal financial services In conclusion, the three ies spent (expenditure) in are influential determinants of this potential. core elements of financial order to meet daily needs health according to CFSI and financial obligations. IV. Plan and prioritize – an individual’s ability to plan and set goals are: day-to-day financial While a successful bal- towards an individual’s financial future. The goals stated from the management, resilience, ance of income and ex- survey in these countries revolved around economic well-being and the ability to pursue penses shows ability to (shelter, ability to provide e.t.c) while prioritization strategies ob- served include investing in financial security. The research found a opportunities. While the six meet daily needs, the re- correlation between active financial management, length of plan- search concluded that criteria for achieving an ning horizon and better financial outcomes. Similarly, a correlation individual’s financial health higher incomes make it was established between income and planning time horizons. as highlighted earlier are easier to achieve this bal- ance. V. Manages and recovers from financial shocks – this measures primary indicators, the four external factors are im- II. Build and maintain re- how well an individual can control financial resources to weather portant as they shed more serves – an individual’s and recover from an economic shock. The research revealed that light on exogenous factors ability to consistently save only a few respondents could access formal insurance to protect related to developing coun- and replace monies spent. themselves from unexpected financial expenses. Most of them re- tries It also measures liquidity lied on personal reserves and their social networks to cope with the ■ and the ease of conver- situation. sion of assets. The re- VI. Use an effective range of financial tools – this indicator search concluded that measures the various types of financial tools respondents use, those who regularly set whether formal or informal, to manage their financial lives. It was aside assets for a period concluded from the research that to adequately assess this indica- tor, the survey should be context-specific with a list of formal and

For full report, visit: http://www.centerforfinancialinclusion.org/storage/documents/2017_BeyondFinInclusion_Full.pdf

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The Financial inclusion Secretariat is the coordinating body for the implementation of the National Financial Inclusion Strategy in Nigeria.

The Secretariat is a liaison for all stakeholders in the Financial Inclusion space and is responsible for engaging, coordinating and evaluating initiatives geared towards the achievement of the Strategy targets.

This newsletter is a quarterly publication by the Financial Inclusion Secretariat and features industry news on financial inclusion as well as periodic updates on the progress of the implementation of the Strategy.

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: [email protected]

EDITORIAL TEAM:

Akin-Fadeyi, Temitope Attah, Joseph A. A Abu, Sophia Umar, Zainab

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