The federal government of Nigeria, the Central Bank of Nigeria (CBN), the government of the Nigerian state of Borno and several other organizations reportedly have launched a financial inclusion initiative that will provide financial services to the un-banked at post offices. The effort employs the already-established network of post offices to implement the program to avoid the expense of establishing new bank branches. A pilot for the program will reportedly run in the state of Borno and will be replicated in other states if the pilot is successful. Further details on how the program will operate have not been released.
Other project partners include the State Level Bankers’ Committee, a forum for program implementation and development by financial institutions; the Nigeria Deposit Insurance Corporation; the Nigeria Communications Commission; the country’s Securities and Exchange Commission; and the Consumer Protection Council, a Nigerian consumer rights organization.
Reportedly 280,000 of Borno’s 5 million people have access to financial services, and approximately 87 percent live in rural areas.
By Nicole Boyd, Research Associate
About Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the act of parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of November 2012, CBN reports total assets of NGN 13.3 trillion (USD 82.4 billion)
Sources and Additional Resources:
Punch. “Borno financial inclusion scheme to use post offices,” http://www.punchng.com/business/money/borno-financial-inclusion-scheme-to-use-post-offices/
MicroCapital. February 21, 2013, “MICROFINANCE PUBLICATION ROUND-UP: Banking on Change Partnership for Financial Inclusion in Africa; Findings on Financial Inclusion in Nigeria; Snapshot of Microfinance in Latin America and the Caribbean,” https://www.microcapital.org/microfinance-publication-round-up-banking-on-change-partnership-for-financial-inclusion-in-africa-findings-on-financial-inclusion-in-nigeria-snapshot-of-microfinance-in-latin-america-and-the-carib/
MicroCapital. January 28, 2013, “MICROCAPITAL BRIEF: Central Bank of Nigeria Allows States to Set up Microfinance Banks, Supports Entrepreneurship Development Centres in Beneu, Borno, Cross River,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-allows-states-to-set-up-microfinance-banks-supports-entrepreneurship-development-centres-in-beneu-borno-cross-river/
MicroCapital. March 22, 2012, “MICROCAPITAL BRIEF: Mobile Money Service Paga Receives $2m Grant from Enhancing Financial Innovation and Access (EFInA) to Promote Financial Inclusion in Nigeria,” https://www.microcapital.org/microcapital-brief-mobile-money-service-paga-receives-2m-grant-from-enhancing-financial-innovation-and-access-efina-to-promote-financial-inclusion-in-nigeria/
MicroCapital Universe Profile: Central Bank of Nigeria (CBN) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
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