- CBN to Enhance Capacity of MMOs, Super Agents
As part of its financial inclusion objectives, the Central Bank of Nigeria, says it plans to enhance the capacity of mobile money operators and super agents.
It disclosed this in its framework for the operation of the Shared Agent Network Expansion Facility which was recently released.
It stated that the objectives of the facility were to enhance the capacity of Mobile Money Operators and super agents to establish financial services access points in under-served and un-served locations.
The CBN also stated that it planned to increase agents penetration among the unbanked and excluded population, provide platform for achieving the financial inclusion targets, create jobs and promote inclusive economic growth.
In the framework, it said the facility would provide loan limit of N500m and disbursements would be in tranches subject to satisfactory performance
It added that it would have a maximum tenor of 10 years with interest rate of five per cent per annum (two per cent to CBN, and three per cent to PFI).
The framework added that repayments would be quarterly to the CBN with moratorium of two years on principal and one year on interest.
In the framework, the beneficiaries and their agents would be subject to on-site and off-site verification and monitoring by the CBN in conjunction with the PFIs during the loan period.
According to the CBN, access to financial services has remained a major challenge to development in Nigeria.
It said the establishment of bank branches as a strategy to improve access might not be viable due to inadequate infrastructure and huge cost.
Efforts by various governments, policymakers and regulators to increase access to finance had not yielded the desired result, it stated.
In order to enhance the provision of financial services to the excluded population, the CBN in collaboration with the Body of Bank Chief Executives, established SANEF.
It stated, “The facility provided financing to CBN-licensed super agents and Mobile Money Operators, to expand their networks to deepen financial inclusion in Nigeria.
“The facility will enhance the capacity of the operators to roll-out more financial access points across the 774 local government areas in Nigeria particularly in the financially- excluded locations.”