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Partnerships for Financial Education

Education, specifically financial education, is a critical tool to enable both individuals and communities to prosper

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Manlan Carl

By Carl Manlan, Vice President, Social Impact, Visa CEMEA 

In April 2022, a media company leveraged key partners to make on-demand mobile-based learning accessible to millions of young Africans. The model bets on the success of the entertainment platform to attract young people to take an extra step in strengthening their entrepreneurial skills. This highlights the importance of multi-stakeholder partnerships in ensuring access to skills and educational messages for Africa’s youth. Moreover, the critical importance of experience-based learning and platforms in advancing socio-economic transformation.

Over the years in the fight against AIDS, tuberculosis, and malaria, we have learnt about the effectiveness of purpose-led partnerships. The ongoing COVID-19 pandemic provided us with a sense of urgency in supporting individuals and households to take full advantage of the digital economy. The continent’s response to health emergencies suggest that we have the tools to push forward in creating a more inclusive society particularly in the areas of education and capacity development.

Education, specifically financial education, is a critical tool to enable both individuals and communities to prosper. Entrepreneurship holds some of the answers in alleviating unemployment in Africa, but it needs to come with the right set of skills and opportunities. Trace Academia, has taken the lead in bringing partners to offer a range of skills to millions of young Africans through their media platform. This rich content has re-imagined Visa’s Practical Business Skills to allow young people to learn lifelong transferable skills.

Leveraging the power of technology, both platforms have been able to bring relevant financial education content that changes the way the youth interact with entrepreneurial concepts. Skills development is one step in the right direction as we continue to collaborate with others to create opportunities for young people. The real impact is in the continuous application of these skills, which will help us navigate some of the challenges that affect youth and employment on the continent.

The Covid-19 pandemic accelerated preference for digital commerce and highlighted the opportunity of key stakeholders to come together to collaborate at the intersection of commerce and skills. Research shows 80 million young people will benefit from the rise of digital commerce in Africa by 2030 but this can only be enabled by access to adequate skills and relevant platforms.

Financial education starts at home and the role of parents and guardians cannot be over emphasized. Practical Money Skills is an online resource which provides content for children and youth grades K to 12. The end in mind is the ability to take control of your finances as an individual or as a household. As such, the fundamental habit of careful management of available resources at home builds the framework for financial education and financial consumer protection which ultimately leads to more communities being included in the financial system. As in the health sector, behaviour change communication and prevention are key factors in curbing the spread of a disease. In our case, financial education and protection are key tenants in spreading expertise and leveraging skills required for individuals to sustain their livelihoods and for entrepreneurs to expand their trade from local to global value chains.

Access to healthcare and financial education may, at first, be unrelated but the pandemic has exposed the fragility of the current economic system when skills are lacking. There is evidence suggesting that debt and financial concerns have a serious impact on mental health

Partnerships for Financial Education

. As such, people living in financial hardship are at increased risk of mental health problems and poorer mental wellbeing. Financial wellness is important for individuals and communities to continue to make a sustainable contribution to the continent.

Most critical diseases affecting the continent over the past half-century have been managed through partnerships. Today, more than ever, we can take a cue from the health sector to make financial education accessible to all, it is a life skill that should be valued.

 

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Finance

Scarcity of Naira Worsens at Nigerian Banks as Customers Shun Cash Deposits

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New Naira Notes

Since the Central Bank of Nigeria (CBN) announced the extension of deadline for return of the old naira notes, checks by Investors King has revealed that most Nigerians have refused to deposit money in the banks.

This development was said to have been triggered by the low circulation of the resigned N1000, N500 and N200 naira notes and inability of the nation’s commercial banks to load their Automated Teller Machines (ATMs) with the new notes.

Investors King had reported that CBN Governor, Godwin Emefiele had directed commercial banks to ensure they load there ATMs with the new notes.

However, banks have not lived up to expectations even as reports of naira racketeering rock the financial institutions.

Most ATMs have been witnessing crowds as customers fight their way out on long queues to withdraw cash.

At various banking halls across the country, activities of financial transactions have decelerated drastically as customers complain of lack of cash.

While most banking halls were desolated as a result of paucity of funds in bank vaults, the few banks that were said to be preparing to load their ATMs were beseiged by frustrated customers, mostly operators of Pont of Sales (PoS).

Customers who visited bank counters to withdraw cash said they were given lower denominations such as N5, N10 and N20.

A bank official disclosed that the CBN had restricted commercial banks from to paying denominations lower than N200 notes owing to scarcity of new notes and to also discourage the spending of the larger denominations.

Confirming lack of cash to pay customers, the Chairman of the National Association of Microfinance Banks, Osun State chapter, Tunde Lawal, said the situation has led to the collapse in operations of many of the banks.

There was confusion at a microfinance bank in Osogbo early Thursday when some aggrieved customers threatened protest as bank officials flee. They had claimed that the bank was not attending to them.

Meanwhile, operatives of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have started monitoring the cash disbursement exercise in Bauchi State as the agency noted that the operation would spread across the country.

The joint taskforce comprising operatives of the ICPC and its sister anti-graft agency, the Economic and Financial Crimes Commission (EFCC) and some officials of the apex bank was said to have been necessitated following reports of hawking of the new notes by black marketers.

The Lagos and Ondo States Chambers of Commerce, Industry have said the implementation of the new naira policy introduced by the CBN was designed to run micro small and medium enterprises and the common man out of business.

The spokesperson for the agency, Adeboro Onibalusi said the new policy has caused hardship for Nigerian Masses especially micro small and medium enterprises operators.

In a statement signed by the chambers’ Director-General, Chinyere Almona, the Lagos chapter noted that the CBN’s inability to properly plan and implement the phasing out of old naira notes has caused serious strain on many businesses.

 

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Banking Sector

Kuda Bank Says Customer Deposits Are Safe Despite Mobile App Issues

The fintech company assured that the application glitches will soon be fixed and customers will gain access to their money again.

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Kuda Bank - Investors King

Kuda Bank, a leading digital microfinance bank, has said there is no cause for alarm as their customers’ money is safe despite the mobile application issues.

The fintech company operating in Nigeria further assured that the application glitches will soon be fixed and customers will gain access to their money again.

Investors King gathered that currently, users of Kuda are having difficulties in accessing the bank app. Some have bitterly complained that their account balance reads zero despite having money in the account.

The Kuda bank management has, however, responded to the complaints by its customers through its official Twitter handle.

The digital bank admitted that the application was having issues and apologised to its customers for their inability to access their money or use the application adequately.

It stated that the company is aware of the mobile app malfunctioning, as well as the zero account balance error.

According to its statement, work is ongoing to rectify the issue and when properly completed, customers will be alerted. It stressed that their money has not been tampered with and the glitch will soon be resolved.

The company’s response on its Twitter handle, @joinkuda reads, “We are sorry that you still haven’t been able to use your Kuda app. 

“We are working with our cloud services provider to sort out the downtime, and we will let you know when it’s been fixed. Your money remains safe and you will be able to access it as soon as services are restored.

“We know that the ₦0.00 balance error reported by several people is worrying but we assure you that it’s just what the app is displaying because of the downtime, not the amount of money you actually have. We will keep sharing updates as we make progress.”

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Finance

Black Market Dollar To Naira Exchange Rate For Today 2nd February 2023

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New Naira notes

You can access the black market Dollar to Naira exchange rate for today, 2nd February on Investors King.

This online business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

Note that the exchange rate changes hourly.… it depends on the volume of dollars available and the Demands. It means that…you can buy or sell 1 dollar at ₦745 and ₦750, and the price can change (high or low) within hours.

How Much Is Black Market Dollar To Naira Exchange Rate Today?

Dollar to naira exchange rate today black market (Aboki dollar rate):

Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N750 and sell at N755 as of the time of filing this report.

Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 750
Selling Rate 755

The local currency opened at N755.00 per $1 at the parallel market otherwise known as the black market today Thursday, 2nd February 2023, in Lagos Nigeria, after it closed at N750 per $1 on Wednesday, 1st February 2023.

Even though the dollar to naira opened in the parallel market at N755 per $1 today, Investors King reports that the Central Bank of Nigeria (CBN) does not recognize the parallel market, otherwise known as the black market. The apex bank has therefore directed anyone who requires forex to approach their bank, insisting that the I&E window is the only known exchange.

Investors King reports that in the black market, the players buy a dollar for N750 and sell for N755 on Thursday morning, February 2, 2023, after they purchased N745 and sold for N750 on Wednesday, 1st February 2023.

Meanwhile, Investors King reports that the USD started this week at ₦755 in Parallel Market also known as Black Market after it opened at  ₦757 last week Monday, January 23, 2023.

Factors Influencing Foreign Exchange Rates

Here are some of the causes of the dwindling dollar to naira exchange rate.

Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.

Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.

Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.

Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.

Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.

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