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Financial Inclusion: CBN Targets 70% ePayment Usage by 2020

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In its revised National Financial Inclusion Strategy (NFIS), the Central Bank of Nigeria (CBN) is targeting 70% e-payment usage by Nigerian adults by year 2020.

Recall that the apex bank has adopted the NFIS in 2012. The strategy articulated the demand-side, supply-side and regulatory barriers to financial inclusion, identified areas of focus, set targets, determined key performance indicators (KPIs) and established the implementation structure.

The NFIS was built on four strategic areas of agency banking, mobile banking/mobile payments, linkage models and client empowerment.

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A key focus of this revised strategy is electronic payments (E- payments) through Digital Financial Services (DFS).

As at 2016, about 38% of Nigerian adults used of e-payment platforms.

The target is that by 2020, this target would have increased to 70% of adult population.

The Financial Inclusion Secretariat which has been set up within the CBN shall take responsibility for day-to-day reporting, coordination and implementation of the Strategy.

It shall continue to receive guidance on its activities from the Steering and Technical Committees as already constituted.

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The overall responsibility for supervision of the activities of the Secretariat shall be performed by the Financial Inclusion Steering Committee, which will in turn, shall provide updates to the National Economic Council (NEC).

According to the revised document, five priorities will be most crucial to increasing financial inclusion in Nigeria as follows:

  1. Creation of an enabling environment for the expansion of DFS,
  2. Enablement of the rapid growth of agent networks with nationwide reach,

iii. Harmonization of the  KYC requirements for opening and operating accounts/mobile wallets on all financial services platforms

  1. Creation of  an enabling environment to serving the most excluded and improvement of  the adoption of cashless payment channels, particularly in government-to-person and person-to-government payments.