A steady decline in the traditional cheque transaction may push the growth of mobile money in the country, a new report has shown.
There have been general declines in monthly cheque transactions in the country since 2016, sliding from N501.166bn in the month of February to N488.627bn in June.
A report from the Nigerian Interbank Settlement System on Sunday showed that cheque transactions worth of N464.553bn were carried out in January; N501.166bn in February; and N487.572bn in March, ending the first quarter.
In the second quarter of the year, spanning April, May and June, cheque transactions worth N472.465bn, N480.409bn and N488.627bn, were respectively executed.
Going by the details of the data, what this means is a decline in the volume of transaction by 675,702 this year, when compared with what was transacted last year.
However, the report stated that Nigerians were moving away from traditional cheque transaction to a more convenient electronic means of carrying out financial exchanges, “as the value of half-year cheque transactions in 2016 dropped by more than 10 per cent.”
According to the NIBSS, the decline compares with the value of transaction during the same period last year, where more cheque transaction took place.
It stated in its report that from a total of N3.194tn cheque issuance value in the first half of last year, the figure crashed to N2.894tn during the same period this year.
From the report, the N300bn transaction difference represents about 10.36 per cent decline in cheque transactions this year.
A further analysis of the report showed that in January, February and March last year, the cheque issuance value stood at N541.062bn, N548.116bn and N565.138bn, respectively.
In April, the transaction value was N510.442bn; N487.937bn in May; and in June 2015, the figure stood at N542.08bn.
Meanwhile, the NIBSS stated that the steady move by Nigerians from traditional cheque transactions to electronic transactions might have positively impacted on the growth of mobile money.
In its fact sheet, it stated that the total number of customers on mobile money operations had risen to 29.13 million.
The report showed that the total number of agents enrolled at the end of the first quarter of 2016 (March) was 106,636; transaction volume within the quarter was at 14.09 million, while transactions value averaged N0.14tn.
From the document, the Central Bank of Nigeria has so far licensed 21 mobile money operators, with all of them already integrated to the NIBSS platform for interoperability.
It also indicated that Nigerian banks had issued over 24 million Bank Verification Numbers to their customers as of March ending, this year.
The report stated that while over 30.1 million account holders had enrolled for the BVN, only 24 million had received their verification numbers.
The number of enrolled bank customers thus represents about 34.7 per cent of the total 86.5 million bank accounts opened by government, corporate and individuals with various banks in the country.
“The purpose of the project is to use biometric information as a means of first identifying and verifying all individuals that have account(s) in any Nigerian bank and consequently, as a means of authenticating customer’s identity at point of transactions,” the Executive Director, Technology and Operations, NIBSS, Mr. Niyi Ajao, said.
“The BVN exercise will also provide a uniform industrially accepted unique identity for bank customers, to authenticate transactions without the use of cards, using only biometric features and Personal Identity Number identification of blacklisted customers,” Ajao added.
According to the NIBSS, starting from January 2015, 2.2 million accounts were enrolled; 2.7 million in February; 3.3 million in March; and by April, May and June, the figures increased to 7.7 million; 9.2 million and 12.4 million, respectively.
In July, August and September, the figure rose to 12.7 million; 13.7 million and 14. 5 million accounts, respectively.
The report added that in the last quarter of the year, 16.3 million accounts were enrolled in October; 21.2 million in November; and in December, the figure stood at 28.2 million.
In the first quarter of this year, the number of enrolled bank accounts for the BVN further increased to well over 32.1 million.
The data also revealed that the number of bank accounts opened with different banks in the country so far had reached 86.5 million.
The number of accounts opened so far in the country had increased from 75 million in January last year to 85 million by the end of December last year, it stated.
It also said the number of bank accounts residing with various banks in January this year rose to 86.5 million.
A further analysis of the bank accounts data, however, showed that the total active accounts in the country dropped from 59 million last December to 58.5 million at the end of January this year.
This means only 67 per cent of the total bank accounts opened in the country are active while 33 per cent are redundant.
Also, as of January this year, 59.7 million bank accounts were savings accounts; 23.4 million were current accounts; while other forms of accounts such as domiciliary, fixed deposit totalled 3.3 million.
Despite the number of inactive accounts, most account holders significantly used various electronic payment platforms for transaction in 2015.
According to the NIBSS Electronic Fact Sheet for the Year 2015, over N35.5tn transactions were carried out on various electronic payment platforms.
The transactions were carried out through the Nationwide Cheque Truncations Services platform, the NIBSS Instant Pay, the Electronic Bills Payment, Point of Sales, Automated Teller Machines and mobile money operators.
The NIBSS report showed that the number of the ATM cards so far issued by commercial banks in Nigeria had hit 41.89 million.
These include the Chip and PIN ATM card brands from indigenous Verve, MasterCard and Visa.
Following the report, “the country recorded a total number of the ATMs as of March 2016 stood at 16,660; the total number of active cards, 41.89 million; while the volume and value of the ATM transactions between January and March, 2016 stood at N0.12bn and N1.07tn, respectively.”
Afrexim and Asoko Partner to Help List African Companies
Asoko Insight, Africa’s leading provider of corporate data and engagement services, is pleased to announce a partnership with Africa Export-Import Bank that will help African companies list on its due diligence platform, the MANSA.
Launched by Afrexim in 2018 to counter the cuts in trade finance and investment financial flows to Africa, MANSA aims to be a single source of the primary data required for Customer Due Diligence (CDD) and Know Your Customer (KYC) checks on African entities. The transparency MANSA provides will address key trade-related challenges facing the continent, including the lack of market information, the high cost of doing business in Africa and the challenges around discovering African counterparties.
The corporate information gathered through this KYC platform provides an additional layer of confidence for international financiers and African companies seeking business partners, unlocking the flow of capital and creating a more transparent operational landscape for trade and investment.
Onboarded as an official data partner for the project, Asoko will host access to the MANSA platform on its Digital Engagement platform through which African companies can register and submit their CDD/KYC information to be listed on the MANSA platform.
Rob Withagen, co-founder and CEO of Asoko Insight, said, “Easing access to African companies for trade and investment opportunities is at the core of Asoko’s work. MANSA is a key tool for facilitating data sharing about members of Africa’s vibrant private sector and we’re pleased to offer a route to it via our Digital Engagement platform.”
HOPE Consortium and Astral Aviation Sign MOU to Enhance Vaccine Distribution Solutions in Africa
As part of its continued commitment to vaccine distribution in Africa, the HOPE Consortium has partnered with Kenya-based cargo airline, Astral Aviation, to offer vaccine distribution solutions to Africa. This highlights the HOPE Consortium’s efforts in reinforcing partnerships that focus on fighting the COVID-19 global pandemic, as well as fulfilling the organisation’s mission as a global logistics facilitator, by aiding in vaccine delivery.
As part of the partnership agreement, both entities will focus on intra-African cooperation to enhance vaccine distribution within the African continent. The HOPE Consortium will utilise Astral Aviation’s comprehensive network, technologies, and market expertise, to support its global objective of facilitating vaccine availability with a specific emphasis on the African continent. The alliance will ensure timely delivery of vaccines and critical supplies to all 54 African nations.
Astral Aviation operates a diverse fleet of 14 freighter aircraft and provides innovative, flexible, and cost-effective UAV (Unmanned Aerial Vehicle) and UAS (Unmanned Aerial Systems) integrated drone-based solutions, as well as warehousing solutions to both in-store and remote locations.
This synergetic collaboration with the HOPE Consortium will see Astral Aviation provide capacity for vaccine deliveries on its scheduled and charter freighter network, in addition to world-class drone solutions and systems to Africa, with the purpose of facilitating immunisation programmes.
Commenting on the partnership, Mr. Sanjeev Gadhia, CEO of Astral Aviation said: “We are truly honoured to partner with the HOPE Consortium and participate in the critical distribution of COVID-19 vaccines, based on our track record in performing humanitarian initiatives and vaccine flights within Africa. Astral will add further technological and warehousing solutions for distribution of the COVID-19 vaccines from the hub in Abu Dhabi, to all the 54 countries in Africa directly or via its Nairobi Hub, which occupies 9000 m2 of cold-storage facilities.”
It is worth mentioning that Astral has also been selected by UNICEF to perform vaccine flights for COVAX and for the African Union via the African Medical Supplies Platform.
Through this partnership, the HOPE Consortium furthers its end-to-end supply chains required to distribute vaccines from their base in Abu Dhabi to all African countries. The HOPE Consortium has geared its operations to transport millions of critical COVID-19 vaccines to any country in need and thus far has handled over 100 million vaccine doses across 40 countries.
Robert Sutton, Head of Logistics Cluster, Abu Dhabi Ports, said: “Africa has always been a high priority market for the HOPE Consortium, and to that end, we are pleased to join hands with Astral Aviation. With a track record of operating over 20 years within Africa, their expertise provides a new dimension towards achieving our overarching objectives. This partnership reinforces the HOPE Consortium’s aim of creating a sustainable ecosystem, based on our collective global networks, logistics and supply chain capabilities, in order to facilitate vaccine distribution across the world. Our partnership with Astral Aviation is another benchmark towards our commitment to serve every country, region, and locale. We are confident that this partnership will help enhance HOPE Consortium’s efforts in Africa and ensure that no one is left behind in the quest against the pandemic.”
Konga Partners NIDCOM, Places World-Class Assets at Reach of Nigerians in Diaspora
Konga, Nigeria’s leading composite e-commerce giant, has signed a partnership with the Federal Government through the Diaspora Commission to further strengthen the relationship between Nigerians abroad, their relatives and the nation.
To this effect, a Memorandum of Understanding was signed between Konga and the Nigerians in Diaspora Commission (NIDCOM) on Tuesday, September 14, 2021, in Abuja, the Federal Capital Territory (FCT).
Present at the signing ceremony was the Chairman/Chief Executive Officer, NIDCOM, Mrs. Abike Dabiri-Erewa; Chairman, Zinox Group, Leo Stan Ekeh, Co-CEO, Konga Group, Nick Imudia; Vice President, KongaPay, Isa Aliyushata as well as other senior officials of NIDCOM.
The terms of the MoU will see NIDCOM partner with Konga is offering Nigerians based in overseas locations a credible platform devoid of the potential concerns of fraud and other unscrupulous practices. Consequently, through this synergy, Konga will place its huge resources, extensive reach, world-class assets and credible database at the disposal of millions of Nigerians in the Diaspora in search of a reliable and robust platform to work within the country.
In addition, the partnership will see Konga set up an exclusive Diaspora Marketplace to aid Nigerians abroad gain access to quality Nigerian products and services, while also helping them sell their own items locally. Furthermore, NIDCOM will also leverage Konga TV, a cutting-edge Cloud TV soon to be launched by the e-commerce giant, to reach millions of Nigerians across the globe.
The development is one which the FG believes will ease capital flight, while also boosting the scope of useful foreign exchange earnings through Diaspora returns.
‘‘We are delighted to have signed this partnership with Konga which remains unarguably a world recognized and credible e-commerce leader in Nigeria,’’ disclosed Hon Mrs. Abike Erewa, NIDCOM Executive Chairman. ‘‘Through this initiative, millions of Nigerians will have access to a reliable platform here in Nigeria to guide their investment decisions, while also offering them a chance to empower their loved ones through the numerous opportunities that abound on KongaGroup. We are also confident that this partnership will encourage many Nigerians resident abroad to gain useful knowledge and consider major social investments in Nigeria, a development that will further rub off positively on the economy.”
Also speaking at the event, Ekeh, Chairman of Konga commended the NIDCOM Chairman and her team for their efforts and professionalism in making the partnership a reality. Ekeh, who pioneered e-commerce in Africa through the now-defunct BuyRight Africa Dotcom over 13 years ago, lauded the power of e-commerce in bridging gaps and growing the wealth of nations in the 21stCentury, a role he stated that Konga is eminently positioned to play in view of its huge resources and growth trajectory in Nigeria and beyond. He added that the partnership is expected to cause a change that would be a blessing to Nigerians in the 21st century.
On his part, Imudia, Co-CEO, Konga Group also stressed the many opportunities that abound for Nigerians in the Diaspora through the partnership with NIDCOM.
‘‘The opportunities are huge.
‘‘Many Nigerians abroad can now find credible merchants for their purchases in Nigeria or even set up their own stores on Konga. Also, they can access reliable information before committing funds or while making investment decisions. With Konga, Nigerians abroad can afford to extend support to relatives and their respective communities without stories.
‘‘Put simply, Nigerians abroad can order foodstuffs, medicines, and other products on Konga platforms and get them delivered to their families and friends without stories, no matter the location in Nigeria. All they need do is open a wallet on KongaPay, a Central Bank of Nigeria fully licensed mobile money platform. They can also use the Konga platform to pay school fees, monthly feeding allowances and pay contractors working for them in Nigeria, etc. and receive alerts that their instructions have been carried out with 100% accuracy.’’
The partnership with NIDCOM comes just as Konga recently signed off on another partnership with the Ministry of Youths and Sports Development to empower millions of Nigerians youths through a job and wealth creation scheme known as Konga Jobs (KJ). The initiative targets the employed, under-employed and unemployed Nigerians. Konga also recently entered a strategic partnership with the Edo State Government to launch the Edo Marketplace(EMP) on Konga as a major platform to take SMEs in the state to the global marketplace and to better serve the unreached and under-reached.
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