Economy
Experts Call for Digital Financial Inclusion in Nigeria
By Dipo Olowookere
Stakeholders and experts in the financial system have agreed that Nigeria’s development agenda should incorporate digital financial inclusion.
Consequently, governments and relevant agencies in the country have been challenged to work together and execute policies that will promote this system.
Speaking at the Financial Inclusion Conference 2017 organised by the Lagos Business School (LBS), in collaboration with BusinessDay, Microsave and International Finance Corporation (IFC) on Tuesday, Board Chairman of EfinA, Ms Modupe Ladipo, who is one of the panellists, said that consumer protection was essential in financial inclusion as different consumers have different needs.
“As a matter of necessity, we need to embark on research to know what our diverse population of consumers want. Let us move from office-led practice of operations to a consumer-led practice,” she counselled.
She stated further that Nigeria must meet global standards of operations, urging regulators to be more flexible and drive policies that would satisfy customers.
At the conference, the Sustainable and Inclusive Digital Financial Services initiative of LBS launched the Digital Financial Services in Nigeria: State of the Market Report 2017.
The report contains evidence-based insights on the state of financial inclusion in the country. Using consumer demographic profiles, the report describes the characteristics of potential financial services customers and also presents an examination of the policy and legal statutes guiding financial inclusion, while proffering market-enabling strategies for attaining the Central Bank of Nigeria’s commitment of 20 percent financial inclusion by 2020.
Dean of LBS, Dr Enase Okonedo, who delivered the opening remarks, said that financial inclusion has become a global trend and LBS organised the conference so that Nigeria could achieve the desired objectives of the policy.
On his part, Chairman of the House of Representatives Committee on Banking and Currency, Mr Jones Onyereri, assured that despite the challenges encountered, government would give apt attention to the players by creating a favourable avenue for financial inclusion to thrive in the country.
He highlighted the activities of the legislature to ensure that Nigeria is financially inclusive.
“The Cyber Crimes and Electronic Transactions Act were passed by the legislative body in Nigeria to bolster financial inclusion in Nigeria. It ensured ease of doing business in Nigeria,” he said.
Lory Camba Opem, Program Lead for Responsible Finance at IFC Microfinance and Digital Financial Services, said that, in addition to making all agencies and stakeholders collaborate for the common good of achieving Nigeria’s financial inclusion objectives, digital literacy and financial education were key factors to explore.
“Consumers need awareness to enable them make the right decisions for them to be inclusive, and our policies must encompass all aspects of consumer education and privacy protection,” she stated.
Gregory Chen, Head of Policy, CGAP, said that due to Nigeria’s cultural diversity, adoption of different modules or policies could be beneficial in bridging the gap in financial inclusion across the country.
Dr Olayinka David-West, Project Lead, Sustainable and Inclusive Digital Financial Services (SIDFS) Initiative at LBS, enjoined all stakeholders to roll up their sleeves to make the issues of financial inclusion work in Nigeria.
She thanked the collaborating partners, speakers, delegates and financial experts for pouring out their views and opinions and emphasised the need for a synergy in Nigeria’s financial ecosystem, which the LBS is trying to bring to fruition through the platform.
The 2017 conference collaborators, Frank Aigbogun, Publisher and CEO, BusinessDay Media, revealed the strong interest of the media organisation in the issue of financial inclusion in Nigeria, which explains the reason for the partnership, while Jacqueline Jumah, Senior Analyst in charge of Digital Financial Services, Microsave and Faculty at the Helix Institute, commended LBS for being at the forefront of impacting the practice of management in Nigeria and Africa.
By Dipo Olowookere
About 0.04 per cent was recovered on Friday from the loss recorded by the Nigerian Exchange (NGX) the previous due to profit-taking.
Yesterday, investors were in the market with renewed vigour, mopping up stocks trading at relatively cheaper prices.
According to data, the insurance counter gained 0.41 per cent, the banking sector appreciated by 0.38 per cent, and the consumer goods index grew by 0.14 per cent.
The gains achieved by these three sectors were enough to lift Customs Street at the close of business despite the 0.26 per cent decline printed by the industrial goods segment and the 0.14 per cent loss suffered by the energy industry. The commodity counter was flat during the session.
A total of 43 equities gained weight on the last trading day of this week, while 26 equities shed weight, indicating a positive market breadth index and strong investor sentiment.
Red Star Express increased its share price by 10.00 per cent to N13.20, NCR Nigeria grew by 9.97 per cent to N128.55, SCOA Nigeria inflated by 9.96 per cent to N14.90, Omatek appreciated by 9.94 per cent to N1.77, and Deap Capital expanded by 9.85 per cent to N4.46.
On the flip side, McNichols decreased by 8.81 per cent to N6.00, Legend Internet crumbled by 7.56 per cent to N5.50, Cornerstone Insurance crashed by 6.48 per cent to N6.35, C&I Leasing contracted by 6.29 per cent to N8.20, and Austin Laz slipped by 5.78 per cent to N3.75.
Yesterday, 539.9 million shares valued at N16.7 billion were transacted in 48,023 deals versus the 1.0 billion shares worth N31.6 billion executed in 51,227 deals in the preceding day, implying a shrink in the trading volume, value, and number of deals by 46.01 per cent, 47.15 per cent, and 6.26 per cent apiece.
Zenith Bank was the most active for the day with 54.6 million stocks sold for N3.8 billion, Jaiz Bank traded 41.5 million units worth N359.4 million, Secure Electronic Technology transacted 37.7 million units valued at N39.2 million, Access Holdings exchanged 30.5 million units for N699.2 million, and Lasaco Assurance transacted 27.2 million units worth N68.3 million.
When the market closed for the day, the All-Share Index (ASI) went up by 72.21 points to 166,129.50 points from 166,057.29 points and the market capitalisation gained N31 billion to N106.354 trillion from N106.323 trillion.
By Adedapo Adesanya
It was a positive ending for the Naira this week after it further appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, January 16 by N1.33 or 0.09 per cent to sell for N1,417.95/$1 compared with the previous day’s N1,419.28/$1.
The domestic currency also gained N2.41 against the Euro in the official market to close at N1,647.51/€1 versus the preceding session’s closing price of N1,649.92/€1, however, it suffered a N7.97 loss against the Pound Sterling in the same market window to trade at N1,901.32/£1, in contrast to Thursday’s closing price of N1,893.35/£1.
In the same vein, the Nigerian Naira depleted against the Dollar at the GTBank FX counter by N2 to quote at N1,427/$1 compared with the previous day’s N1,425/$1, but strengthened against the greenback at the black market yesterday by N5 to settle at N1,485/$1 versus the N1,490/$1 it was exchanged a day earlier.
Improved supply conditions helped keep the market within range as exporters’ and importers’ inflows in addition to non-bank corporate supply enhanced liquidity as the Central Bank of Nigeria (CBN) made no visible intervention.
Stronger external inflows from foreign portfolio investors (FPIs) and improving current account dynamics, continue to align with structural support in the wider economy.
Nigeria has seen projections of a stronger economic or gross domestic product (GDP) growth and lower inflation in 2026, with these forecasts citing improved macroeconomic fundamentals and reform impacts.
As for the cryptocurrency market, it was mixed following selloff in precious metals and lower US stocks appeared to be denting crypto sentiment.
Gold and silver, both of which also enjoyed big rallies earlier this week, tumbled 1.2 per cent and 5 per cent, respectively while key US stock indexes — the Nasdaq, S&P 500 and Dow Jones Industrial Average — all reversed from early gains to modest losses in Friday trade.
Dogecoin (DOGE) shrank by 2.2 per cent to $0.1370, Ripple (XRP) slipped by 0.8 per cent to $2.05, Ethereum (ETH) went down by 0.7 per cent to $3,228.56, and Bitcoin (BTC) slumped by 0.6 per cent to $95,086.80.
Conversely, Litecoin (LTC) appreciated by 3.2 per cent to $74.48, Solana (SOL) rose by 0.4 per cent to $143.70, Cardano (ADA) jumped by 0.2 per cent to $0.3942, and Binance Coin (BNB) increased by 0.1 per cent to $935.88, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Oil prices settled higher amid lingering worries about a possible US military strike against Iran, a decision that may still occur over the weekend.
Brent crude settled at $64.13 a barrel after going up by 37 cents or 0.58 per cent and the US West Texas Intermediate (WTI) crude finished at $59.44 a barrel after it gained 25 cents or 0.42 per cent.
The US Navy’s aircraft carrier USS Abraham Lincoln was expected to arrive in the Persian Gulf next week after operating in the South China Sea.
Market analysts noted that it doesn’t seem likely anything will happen soon. However, the weekends have become the perfect time for actions so as not offset the markets.
The market had risen after protests flared up in Iran and US President Donald Trump signalled the potential for military strikes, but lost over 4 per cent on Thursday as the American president said Iran’s crackdown on the protesters was easing, allaying concerns of possible military action that could disrupt oil supplies.
Iran produces approximately 3.2 million barrels per day, accounting for roughly 4 per cent of global crude production, so it was not a coincidence that markets rallied sharply through Tuesday and Wednesday as President Trump canceled meetings with Iranian officials and posted that “help is on its way” to Iranian protesters, raising fears of potential US military strikes that sent prices surging toward multi-month highs.
Weighing against those fears are potential supply increases from Venezuela.
The Trump administration is exploring plans to swap heavy Venezuelan crude for US medium sour barrels that can actually go straight into Strategic Petroleum Reserve (SPR) caverns, since not all all oil belongs in the reserve.
According to Reuters, the Department of Energy is considering moving Venezuelan heavy crude into commercial storage at the Louisiana Offshore Oil Port, while US producers deliver medium sour crude into the SPR in exchange.
Analysts expect higher supply this year, potentially creating a ceiling for the geopolitical risk premium on prices.
Some investors covered short positions ahead of the three-day Martin Luther King holiday weekend in the US.
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