Can Nigeria Meet the Global and National Financial Access Target by 2020?
Nigeria has one of the highest proportions of financially excluded adults in the world at 41.6%, this is according to Enhancing Financial Innovation and Access. In a survey by the same organization, it was revealed that Nigeria’s financially excluded population grew from 36.9 million to 40.1 million in 2016. These numbers are alarming for a country that has great ambitions of becoming one of the world’s biggest economies in the foreseeable future.
In late 2017, the Nigerian Communications Commission (NCC), signed a Memorandum of Understanding with Central Bank of Nigeria, enabling mobile operators to integrate special purpose vehicles to offer Mobile Money services. This is in fact a reasonable decision because when the numbers of mobile operators in Nigeria are critically analysed, it points to the fact that the fastest route to achieving Financial inclusion in the country is if Telcos are allowed to play a role.
It is as result of the MOU signed by NCC and the Apex Bank in Nigeria that MTN Group and Pan- African Ecobank recently signed an MOU to ameliorate the evident problem of financial exclusion in Nigeria. It makes sense that both organizations are in partnership, as both have footprints across the African continent and the number of subscriber base that MTN has continues to increase at a geometric rate.
Speaking during the announcement of the partnership on 10th of April 2018 in Lagos, Rob Shuter, the Group Chief Executive Officer, MTN Group said: “Partnerships between banks and mobile money operators are fundamental in the mobile money ecosystem, hence our long-standing partnership with Ecobank in many of our markets aimed at driving financial inclusion. We are excited to be taking this partnership to the next level as this latest development will spearhead innovative initiatives which will deepen financial access on the continent.”
He added that MTN is open to working with other financial institutions in order to bridge the financial divide.
Ecobank has the means and the licence to deliver mobile money services but they cannot boast of the numbers that MTN group has. For example MTN Nigeria boast of more than 50 million active customers which puts them in pole position to reach the populace fast and easily . This makes the partnership between both organizations strategic to say the least and it can only mean positive economic growth and financial inclusiveness for almost every Nigerian.
Commenting on the collaboration, Ade Ayeyemi, the Chief Executive Officer of Ecobank, said:“Combining Ecobank’s innovative digital banking range with MTN’s enormous subscriber base means that virtually every African can now have an instant bank account, savings accounts, loans and make instant remittances on their mobile phone.”
“Ecobank’s digital strategy has long been committed to providing banking facilities to the mass market. We have already made giant strides in our mission to ensure financial inclusion and today’s agreement with MTN will greatly accelerate the easy availability of banking facilities to the previously unbanked.”
According to another survey by Enhancing Financial Innovation and Access, Financial exclusion is more evident in the North-West geopolitical zone of Nigeria with up to 70% of the Population excluded. In addition, about 62% of the North Eastern zone population are excluded. However, the south west zone has already achieved the national financial inclusion target by reducing the number of Financially excluded population to about 20%, while the south East is yet to meet the National target as about 28% of the region’s population are still Excluded. The South South Geopolitical zone is still behind the target by 31%.
It is evident that there is still a lot to be done if both the National and global target by 2020 is to be met. But with the kind of partnership MTN and EcoBank has signed and hopes of more partnerships between Financial institutions and ICT companies to come, it can only get better.
