The Fintech Revolution: Transforming MSMEs and Financial Inclusion in Nigeria
Fintech has emerged as a transformative force in Nigeria, reshaping the financial landscape and ushering in an era of unprecedented financial inclusion. Among its many impacts, perhaps the most noteworthy is its role in fostering the growth of Micro, Small, and Medium-sized Enterprises (MSMEs), which are the backbone of the Nigerian economy. Fintech has undeniably improved financial access and penetration across Nigeria. By introducing innovative solutions like mobile banking, digital wallets, and agent banking, it has reached underserved populations that traditional banking services could not. Not only has this expanded access, but it has also brought down transaction costs, making financial services more affordable for all. One of the remarkable achievements of fintech in Nigeria is the transformation of payment systems. The proliferation of mobile money platforms and digital payment solutions has revolutionized the way transactions are conducted. Nigerians can now seamlessly make payments, transfer funds, and settle bills through their mobile devices. This has significantly contributed to the adoption of cashless transactions, reducing the risks associated with physical cash. However, the real success story of fintech in Nigeria lies in its impact on MSMEs. These enterprises, often struggling to access traditional financial services, have reaped unparalleled benefits from the fintech revolution. Fintech platforms have bridged the financing gap that has historically plagued MSMEs. Through peer-to-peer lending and crowdfunding, they can secure much-needed capital for their businesses. This has not only injected much-needed funds into these enterprises but has also fueled entrepreneurship and innovation. Beyond financing, fintech has streamlined MSME operations. Tools such as accounting software, digital marketing platforms, and supply chain management systems empower these enterprises to operate more efficiently and compete effectively with larger players. Moreover, e-commerce platforms, enabled by fintech, have expanded their reach, allowing MSMEs to tap into a broader customer base. Risk management is another critical aspect where fintech has made substantial contributions. Fintech solutions offer valuable risk assessment tools, enabling MSMEs to make informed credit decisions. This is essential for ensuring the long-term sustainability of these enterprises. However, while the impact of fintech in Nigeria is undeniable, it is essential to address the challenges that come with this rapid transformation. Fintech regulation in Nigeria is still evolving, requiring a delicate balance between promoting innovation and providing effective oversight. The rapid growth of fintech adoption has also given rise to escalating concerns about cybersecurity. Robust measures are required to protect financial data and services from cyber threats. Furthermore, addressing financial literacy gaps remains a critical challenge. Not all segments of the population possess the necessary skills to fully utilize fintech services, emphasizing the need for comprehensive educational initiatives. Overall, the impact of fintech in Nigeria extends beyond improved financial penetration; it is reshaping the fortunes of MSMEs, introducing a new era of financial accessibility, efficiency, and innovation. As the fintech ecosystem in Nigeria continues to mature, its contribution to economic growth and development is poised to become even more profound. Nevertheless, addressing regulatory, cybersecurity, and educational challenges will be instrumental in sustaining and maximizing these benefits. The revolution has the potential to propel Nigeria into a new era of economic prosperity, and it’s imperative that stakeholders work together to overcome the associated challenges and ensure the continued success of this dynamic industry.
BUA Cement’s Price Reduction Will Boost Affordable Housing –Minister
The Minister of Housing and Urban Development, Architect Ahmed Musa Dangiwa has commended the decision by BUA Cement Plc to reduce the price of cement to N3,500 from about N5,500. According to the minister, the gesture will reduce the cost of cement, which is a major cost in building construction. A statement by Deputy Director, Information, Federal Ministry of Housing and Urban Development, Salisu Haiba Badamasi Tuesday in Abuja, quoted Dangiwa as saying that BUA Cement Plc’s decision represents a substantial stride toward easing the financial burden on aspiring homeowners. He underscored that the soaring cost of cement has led to a drastic increase in house prices, making them unaffordable for the average Nigerian. Dangiwa emphasized that since assuming office, he has made promoting the delivery of affordable housing a top priority in line with the Renewed Hope Agenda of Mr. President “The escalating prices of building materials, especially cement, have placed a daunting obstacle on the path to homeownership for many Nigerians. BUA Cement Plc’s decision to reduce the price of cement to N3,500 is highly commendable. It reflects their understanding of the struggles faced by ordinary Nigerians and is a positive step towards making housing more affordable and attainable for all,” he noted. “I commend BUA Cement Plc for their socially responsible decision to reduce the price of cement. Accessible and affordable housing is a fundamental right, and this move by BUA Cement Plc will undoubtedly alleviate the challenges faced by our citizens. It demonstrates a shared commitment to improving the lives of our people and furthering the goals of sustainable urban development” The Minister added that the company’s initiative will not only benefit individual homeowners but will also stimulate economic growth, create jobs, and lift many Nigerians out of poverty by fostering affordable housing construction and infrastructure development. The minister urged other industry players to emulate BUA Cement’s example, urging them to consider the social impact of their decisions. He expressed the belief that collaborative efforts between the government and private sector entities are essential in overcoming the challenges related to housing affordability and ensuring the realization of decent living conditions for every Nigerian citizen.
NCDC Registers 1,968 Lassa Fever Cases In 28 States
The Nigeria Centre for Disease Control and Prevention (NCDC), has registered 1,068 Lassa fever infections across 112 local government areas in 28 states of the federation. The NCDC said this via its official website on Tuesday in its Lassa Fever Situation Report for Week 37 (September 11 -17, 2023). The centre indicated that 75 per cent of the cases were detected in Ondo, Edo, and Bauchi States. Lassa Fever is a viral hemorrhagic fever caused by the Lassa virus. It is primarily found in West Africa, particularly in Sierra Leone, Liberia, Guinea and Nigeria. The virus is transmitted to humans through contact with the urine or faeces of infected rodents, specifically the multimammate rat. According to the NCDC, there are currently 7,352 individuals with suspected cases and the infection has resulted in the unfortunate loss of at least 181 lives in the country. The centre said that the case-fatality ratio of the infection stood at 16.9 per cent. “Cumulatively from week 1 to week 37, 2023, 181 deaths have been reported with a case fatality rate of 16.9 per cent which is lower than the CFR for the same period in 2022 (19.1 per cent). “In total for 2023, 28 States have recorded at least one confirmed case across 112 local government areas. “Seventy-five per cent of all confirmed Lassa fever cases were reported from these three states (Ondo, Edo, and Bauchi) while 25 per cent were reported from 25 states with confirmed Lassa fever cases. “Of the 75 per cent confirmed cases, Ondo reported 35 per cent, Edo 29 per cent, and Bauchi 11 per cent. “The predominant age group affected is 21-30 years (Range: 1 to 93 years, Median Age: 32 years). “The male-to-female ratio for confirmed cases is 1:0.9. The number of suspected cases increased compared to that reported for the same period in 2022,” it said. It is regretted that in 2023 Lassa fever infected 49 healthcare workers across the country. The agency said that the National Lassa Fever Multi-partner, Multi-sectoral Emergency Operations Centre had been activated to coordinate the response activities at all levels. It added that prevention of Lassa fever involves avoiding contact with rodents and their droppings, practising good personal hygiene and taking precautions when caring for infected individuals. The NCDC said that early diagnosis and prompt medical care are crucial in managing the disease and preventing complications.
Communication Ministry Targets $5bn Funding For Tech Startups By 2027
The Minister of Communications, Innovation and Digital Economy, Bosun Tijani has said that regulatory tools will be used, not only to increase investments but also attract up to $5 billion in funding for Nigerian tech startups by 2027. Tijani noted that by providing an enabling environment, innovators and entrepreneurs would be encouraged to develop unique solutions that would drive economic growth. The Minister revealed this at the unveiling of a document titled, ‘Accelerating our Collective Prosperity through Technical Efficiency: A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy’ Monday in Abuja. The document has five priority areas which includes, Knowledge; Policy; Infrastructure; Innovation, Entrepreneurship and Capital and Trade. The document reveals, “For this 4th pillar, our primary objective is to stimulate the growth and sustainability of startups, with specific focus on those developing innovative solutions for criticalsectors in our economy. Increase capital raised by Nigerian tech startups 50% year-on-year from $1bn/yr in 2022 to $5bn/year in 2027.” Another target the Ministry has for tech startups is to increase domiciliation of local technology startups from less than 1 per cent to 25 per cent by 2027. The document said, “We will establish an active sandbox environment that encourages and empowers innovators and entrepreneurs to develop unique solutions for sectors historically considered to have limited exposure to technological innovation. “By removing regulatory barriers and providing the required support, we aim to inspire innovative, problem-solving approaches to existing challenges. “With the goal of supporting the diversification of the Nigerian economy, we will collaborate with other ministries and parastatals including private sector stakeholders to drive opportunities for startups to facilitate the application of technology for enhanced productivity in critical sectors across the country. We will back programmes focused on AgriTech, HealthTech, EdTech, MediaTech, CleanTech, CreTech, among others. “Identify opportunities for the digital economy in various sectors such as Agriculture, Financial Services, Healthcare, Education, Energy, Transportation and Logistics, Manufacturing, Retail and E-commerce, Textiles and Fashion, Media and Entertainment, eSports/Gaming, and Real Estate.”
FG Commences National Social Register Verification
The Federal Government has commenced the verification of the National Social Register to identify genuine beneficiaries of the palliatives. Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu who made this known at the commencement of the Federal Government’s National Social Register verification in Makoko, at the weekend in Lagos, added that the exercise aims to guarantee the accuracy of the federal government’s social register which includes individuals who are genuine beneficiaries. The Minister said the exercise would be carried out across the country to ensure that the National Social Register has integrity. She said, “We are here today in the Makoko area of Lagos state because President Bola Tinubu has asked us to come here and verify the National Social Register” “The President desires to ensure that the social register is accurate and indeed captures the people that deserve to be on that register. “The Federal Government of Nigeria is trying to put money in the hands of Nigerians to assist them in terms of their businesses, livelihood, job creation, of course, to help them afford basic things like sending their children to school and ensuring that they can access to quality health services.’’ “For us to do this, we need to verify the National Social Register.” She further stated that the president is unwavering in his commitment to ensuring that individuals listed in the national social register are genuinely impoverished and subsist on less than one dollar per day. The verification exercise will include extensive outreach to validate the national social register and ensure it accurately captures impoverished Nigerians living on less than one dollar a day, and residing in remote and genuinely disadvantaged areas in need of assistance. “Those who should not be on the register should be removed. Those who need to be on the register should be included. “And so, we are taking this as one of the samples. We are doing both community targeting and geographical targeting. “This is our first sample and we have gone round and we have seen that certain aspects of the Makoko were covered under the national register. “However, the last area that we came for was not reflected on the national social register and so, we will be coming back to do a targeted capturing of the people in this area,” Edu said. “We will work with the governors, we will work with the states, we will work with the local governments and we will work with the community heads. “And we can be sure that those who are being captured and those we will be making the conditional cash transfers to are those who truly need it devoid of political interference, devoid of social interference and devoid of personal interest,” she said.
Motorcycle Riders’ Union Seeks Meeting with Wike Over Members’ Ill-Treatment
President of the Motorcycle Operators Union of Nigeria (MOUN), Comrade Julius Oghenevwegba Bobi, has expressed the union’s firm stance against the ill-treatment of its members by various state governments and agencies nationwide. In an official statement personally signed by Comrade Bobi and released to the media on Sunday, the union decried the inhumane treatment endured by its members, emphasizing that such actions would no longer be tolerated. The statement reads, “We wish to bring to your attention the distressing reality faced by MOUN members who operate motorcycles across the country, enduring unwarranted harassment and constant confiscation of motorcycles. This situation is no longer acceptable to our union. As the National President, I am taking the initiative to engage in a dialogue with the government to address these persistent challenges, which have led to the unjust seizure and destruction of our members’ motorcycles, thereby rendering them jobless despite being law-abiding citizens who dutifully pay their taxes.” “We have received reports this week indicating that approximately 700 motorcycles were confiscated by government agencies in the Federal Capital Territory (FCT), Abuja, in addition to similar incidents in various locations across Nigeria. This alarming trend, coupled with harassment by law enforcement agencies for extortion, has become an unbearable burden for motorcyclists in Nigeria,” the statement continued. Comrade Bobi revealed that he has taken steps to correspond with the current Minister of FCT, Barrister Nyesom Wike, with the hope of appealing to him to adopt a more considerate approach in addressing issues concerning motorcycle riders in the Federal Capital Territory. It is noteworthy that the Motorcycle Operators Union recently received its union certificate from the Registrar of Trade Unions, Mr. Amos Faloni. The National President emphasized that this development has empowered them to conduct their operations in compliance with the law, granting them protection from harassment and intimidation. “With this recognition, we are determined to fulfill our mission and vision while upholding our core values and representing the interests of our association,” he concluded.
Police Initiate Inquiry Into Political Clashes, Violence In Kogi
The Kogi Police Command on Sunday launched investigation into alleged reports of political clashes and violence in Kogi as the Governorship election draws closer. The Police action was sequel to a report of alleged attack on the SDP Campaign train at Koton-Karfe where some persons were said to have been injured in the process through political violence. The Kogi Commissioner of Police, Onuoha Bethrand, in a statement issued in Lokoja by the Command’s Spokesman, SP Williams Ovye-Aya, said that the police would not tolerate any act of lawlessness in the state. The worried commissioner directed the Deputy Commissioner of Police, Criminal Investigation Department (SCID) to commence a thorough, diligent and wholistic investigation of all acts of political violence, accusations and counter-accusations on all the political parties and actors with a view to bringing all offenders to book. Bethrand condemned some politicians whose stock-in-trade is violence and who have taken it upon themselves to cause mayhem and heat up the state through their unguarded utterances and unregulated activities. “I hereby sternly warn all the Political Parties in the state and their supporters to play by the Rules and stop heating up the state or face severe sanctions. “You should all desist from all forms of violence as anyone caught disrupting the prevailing peaceful environment in the state will be made to face the full wrath of the Law. “Moreso that the Governorship election is fast approaching, we are appealing to all political actors to give peace a chance by conducting themselves in peaceful manner and shunning all acts capable of truncating the peace, tranquility and unity of Kogi. “Therefore, for the last time, I wish to warn would-be trouble-makers to have a change of heart and desist from acts of intolerance as the Police is ever determined to deal decisively with anyone who will not give peace a chance in the state,” he warned. The police boss also assured of the Command’s unwavering commitment to the protection of all lives and property in the state before, during and after the Nov. 11 governorship election. He, however, attributed some the crises or violence to the failure of most of the political actors to honour invitations and partake in series of stakeholders’ parleys/interactions, where issues bordering on security and the need to conduct political activities as enshrined in the Electoral Act are discussed. “Again, not all the Chairmen and Candidates of the other Political Parties honour Police Invitations to discuss petitions and/or allegations with the Police, and other salient issues germane to peaceful campaigns, and that of the Inter-Agency Consultative Committee on Election Security. “For the record, several invitations extended to the SDP and ADC Candidates for interaction and consultation with the Police to shed light, provide explanations and give their own side of the story on Petitions written against them, but to no avail. “While these other parties have been carrying the police along in their activities, the SDP candidate has consistently and vehemently refused to honour any of police invitations for investigation, or inform the me nor the command while embarking on political rallies to enable the police provide adequate security coverage. “His (SDP Candidate’s) refusal to deal with the police is undermining peace in the State, has been impeding efforts to streamline and regulate political activities. “It has in turn, greatly contributed to the pockets of political violence being witnessed in the State presently. His riding roughshod and engaging in political brinkmanship and brigandage is an illwind that blows no one any good,” he noted. The police commissioner, however, expressed his sympathy to victims of last Friday’s Koton Karfe political violence that left some people wounded.
Independence Day: Shelve Planned Strike, Nasarawa Speaker Begs NLC, TUC
The Speaker, Nasarawa State House of Assembly, Alh. Ibrahim Abdullahi, has appealed to the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to shelve their planned indefinite strike for the overall development of the country. The call is contained in a statement issued by his Chief Press Secretary, Mr Jibrin Gwamna, in Lafia on Sunday. Abdullahi said that the strike would affect the socio-economic activities of the country negatively, hence the need for his appeal for more time and realistic dialogue. “I want to appeal to the leadership of the NlC and TUC to shelve their planned strike in the interest of peace and for the overall development of the country,” he said. The speaker appreciated Nigerians for their loyalty and support to the government since independence in the country. Abdullahi said that the progress and development achieved so far in the country was as a result of citizens loyalty and support to both the past and present governments in the country. The speaker congratulated all Nigerians at 63 and Nasarawa state at 27 on the successful Independence Day celebration and wished them more fruitful years ahead. “I want to appreciate our founding fathers for ensuring that we got independence in the country. “Since we got independence in the country, so far so good, the country is progressing and is moving forward despite our challenges, we are not stagnant as a nation and as a state,” he said. The speaker also urged Nigerians to use the Independence anniversary and reflect on the sacrifices of the nation’s founding fathers. He called on all and sundry to strive towards ensuring that the labour of the nation’s founding fathers were never in vain by contributing positively to the development of the country. Abdullahi also called on Nigerians to continue to pray for the nation’s unity, peace, progress and development. Besides, he urged the people of the state and Nigerians to support President Bola Tinubu, Gov. Abdullahi Sule and other leaders to succeed. “I want to call on Nigerians to continue to pray and support President Bola Tinubu, His Excellency Gov. Abdullahi Sule and other leaders to succeed.” The speaker further appealed to Nigerians to continue to remain law abiding, respect constituted authorities and live peacefully with one another for development to thrive.
Inadequate Infrastructure, Bane Of e-Payments in Nigeria -Fintech Experts
Experts in Nigeria’s Fintech industry have said that the major challenges facing electronic payments in Nigeria is the inadequacy of infrastructure, including operational and telecommunications facilities, as well as reliable electricity supply. They opined the need for stakeholders in the financial industry to work together and extend e-payments channels across the country as well as finding solutions to the growth of fraudulent activities in the system. Chief Finance Officer Parthian Partners, Yinka Arewa while making presentation on the “Collaboration, Key to tackling challenges facing E-PAYMENT System in Nigeria, said many e-payment systems depend on stable power sources and robust IT infrastructure, such as laptops, mobile phones, POS terminals, and dependable internet connectivity. He said during the period of cash scarcity earlier this year, banks faced unprecedented e-payment failures, prompting the urgent need for technological infrastructure upgrades. He said the failure of e-payment channels on such a scale compelled customers to wait for banks’ networks to stabilize before completing their transactions while the FinTech companies, initially considered a lifeline, also encountered challenges due to increased pressure. He pointed out that the recent events, such as the implementation of the cashless policy following the Naira redesign late last year/early this year, highlighted the challenges associated with the country’s transition to a cashless economy He said the issue of failed transactions has persistently affected numerous businesses reliant on electronic payment systems. He stated that the rapid growth in financial technology has broken down geographical barriers, introduced innovative approaches, and ushered in numerous advancements, but at the same time has exposed us to unprecedented risks, including cybercrime. He pointed out that cybercrime poses severe societal and economic consequences, ranging from facilitating corruption, money laundering, and military espionage to terrorism, all of which undermine technological and socio-economic development. Speaking further, he said Cybercrime’s impact on customers is substantial, as everyone desires the safety and security of their hard-earned money. Trust is the linchpin of finance, and no one wishes to witness their funds vanish. Security concerns stemming from electronic fraud and cyberattacks are real. The automated nature of payments without direct interaction between the payer and payee renders e-payments vulnerable and with the proliferation of digital financial activities, cyber threats are expected to rise” But despite all these challenges, he said In 2022, Nigeria unlocked $3.2 billion in additional economic output through the development and utilization of electronic payments, particularly real-time payment services. “Electronic payments continue to attract substantial global investments and have exhibited the highest returns and growth within the sector over the past decade. Indeed, Nigeria has witnessed a remarkable digital transformation, with over 100 million active mobile phone users as of 2023. “This statistic signals the advent of a fully digitized financial services sector. However, despite these advancements, Nigeria’s payment system predominantly relies on cash.” Managing Director, Nigerian Inter Bank Settlement Systems (NIBSS), Premier Oiwoh, called for stakeholders’ partnership to extend e-payment channels across the country. He said that such partnership will, in addition to wider coverage, help to checkmate abuses, dispense errors, instant resolution of errors as well as update technological resources in delivering first-class e- payment across the country. Oiwoh who was represented by the Divisional Head, Enterprise Support NIBSS Bola Onigbokan, said: “Collaboration is mandatory; it is not a choice, adding that as we have gathered here doing our workshop planning how to move forward, the fraudsters are also brainstorming and strategizing on how to operate and often times, they are even ahead of us. I think that is even why we are even having this discussion today.” He assured Nigerians that the national payment infrastructure of NIBSS, owned by banks, were committed to ensuring seamless transactions, customer protection, and the improvement in technologies driving e-payment systems.
FG Denies N50bn Plea Bargain With Emefiele
The Federal Government on Sunday, distanced itself from a purported N50 billion planned non-prosecution plea bargain with the embattled former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele. The detained ex CBN Boss was reported to have entered into a plea bargain with government on condition of surrendering N50b to facilitate his early release from the custody of the Department of the State Service DSS and cancelling his trial on charges comprising money laundering, breach of Public Procurement Act and abuse of office. However, on Sunday, the Attorney General of the Federation AGF and Minister of Justice, Prince Lateef Olasunkanmi Fagbemi said neither his office or the Presidency have had anything of such nature with Emefiele. The position of the Federal Government was made public in a statement by the Director of Information in the Federal Ministry of Justice Mrs Modupe Ogundoro. The statement reads in part: “The attention of the Office of the Attorney General of the Federation and Minister of Justice has been drawn to a report by Sahara Reporters alleging that the former Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele and the Federal Government of Nigeria, have agreed to a non-prosecution plea bargain arrangement. “The report further alleges that Mr. Godwin Emefiele and the Federal Government of Nigeria, represented by the Attorney General of the Federation and Minister of Justice, have signed a non-prosecution plea bargain agreement and that the agreement is awaiting the signature of President Bola Ahmed Tinubu, “The Office of the Attorney General of the Federation and Minister of Justice hereby states clearly that these reports are completely false. “It would be noted that the legal team representing Mr. Godwin Emefiele had expressed their intention in court at the last hearing to initiate a plea bargain arrangement. “However, no such arrangement has been reached with Mr. Godwin Emefiele or his representatives. “We wish to advise the media and members of the public to kindly disregard the said false report. “The Office of the Attorney General of the Federation and Minister of Justice will continue to take all actions in the interest of the Nigerian public,” Fagbemi assured.