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The Impact of Central Bank Digital Currencies on Financial Inclusion and Retail Banks: What Does it Mean for Africa?

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Central Bank Digital Currencies

More than half of African citizens, around 95 million people, do not have a traditional bank account.  With 57% of the African population currently unbanked, challenges have arisen as to how these citizens can access economic opportunities. Bringing the unbanked into the financial mainstream is one of the principal advantages that a Central Bank Digital Currency (CBDC) offers—particularly to less developed countries with large percentages of unbanked in their population. A key feature of many retail CBDC projects is the ability of individuals to access a digital currency account offline as well as online.

“This is important as it effectively decouples financial inclusion from access to the internet,” says Marion Laboure, Senior Strategist at Deutsche Bank Research and co-author of a recent white paper on digital currencies. Thus, people will be able to make CBDC transactions over basic mobile devices, using stored value cards, for example, or even text messages.

However, the financial inclusion benefit is not a given, warns Ashlin Perumall, Partner at Baker McKenzie in Johannesburg. “To lay claim to this feature, the system for a CBDC needs to be designed with inclusion in mind.”

Offline access is one such design element, but there are more. For example,  the system must be interoperable with the diverse payment mechanisms used in an economy, and it must be accepted by merchants. It also requires simplified KYC (know-your-customer) and AML (anti-money laundering) processes.

“Such a design will not only foster inclusion, but also a competitive environment where private sector companies—banks and merchants—can both interoperate with the CBDC and compete among themselves to drive down the prices of services to individuals,” says Perumall.

So far, one country in Africa has launched a CBDC – Nigeria, and three others have CBDCs in pilot – Ghana, South Africa and Tunisia. Globally, as of June 2023, 11 countries or their currency unions had fully launched digital currencies, 21 had embarked on pilots, 32 had them under development and another 46 were at earlier stages of researching them. Some initiatives are exclusively for retail CBDCs (including the 11 already launched), some for exclusively wholesale ones, and several large economies (such as China, the US, and the Eurozone) are exploring the launch of both.

For Nigeria, says Perumall, one impetus for launching a CBDC is to shore up the use of its own currency in domestic payments, thereby reducing use of the dollar, as well as to increase the visibility and traceability of money flows. “There, and in other African countries, CBDCs could solve problems that aren’t currently being solved,” Perumall says.

With the exception of Nigeria, all of the 11 that have launched CBDCs thus far are small economies in the Caribbean region. According to Laboure, the major motivation for these countries was to expand financial inclusion, as most have large numbers of un- and underbanked citizens.

The world’s central banks

The world’s central banks understand that the future of money is digital. As payments shift online, the use of cash declines and the fortunes of crypto assets rise and fall, central bankers realise that their ability to command the use of money in their economies could weaken and that the financial exclusion of un- and underbanked citizens could be cemented. While the widespread introduction of central bank digital currencies (CBDCs), especially in the world’s major economies, is not imminent, the groundwork being conducted in this area is detailed and in-depth, such that many central banks will be ready to launch when their governments deem the circumstances to be right. Before that time comes, central banks have choices to make about the design of their CBDC systems, particularly those earmarked for retail use.

There is currently less urgency in larger, wealthier economies to move toward CBDC launch. Singapore is a case in point. After completing a pilot in late 2022, its central bank, the Monetary Authority of Singapore (MAS), stated that: “The use cases for a retail CBDC are unclear, given that electronic payments … are pervasive, and households and firms … are already able to transact digitally in a fast, secure and seamless manner today.”

Speaking of wealthy economies more broadly, Perumall also cites the travails of cryptocurrency markets as a reason for central banks to hold off. “Crypto threats to sovereign liquidity have receded somewhat in the past year,” he says.

Nonetheless, several major economies are expected to launch CBDCs this decade. “It’s a question not of if but of when,” says Laboure.

Where the private sector fits in

Implicit in the above—and an altogether new departure in the history of banking—is the existence of a direct relationship between individual citizens and their country’s central bank, in which the former hold a CBDC account with the latter. In some countries’ designs, citizens may use a mobile app to access that account directly, but it is more likely that private sector banks will play the role of intermediary in a two-tiered digital banking system.

There are nevertheless concerns that central banks could compete with retail banks for CBDC transactions, especially if the former opted to offer interest-bearing accounts. While not excluding that possibility, Perumall downplays disintermediation concerns. “Private sector banks not only provide the mechanism for distribution of money into an economy,” Perumall says, “but they also provide the services and the management of such services that go along with it—things that no central bank has the capacity to do.”

Concerns also exist that CBDC accounts could exacerbate a banking crisis if customers began shifting funds from their retail banks to the safer haven of the central bank. In Perumall’s view, however, the two-tiered system of most CBDC designs, along with non-interest-bearing accounts and limits on CBDC holdings, provide a safeguard of sorts against the possibility of bank runs.

Laboure similarly sees no CBDC threats to financial stability due to the same factors: their two-tiered design, zero interest accounts and caps on holdings. “Moreover, looking at countries where CBDCs are live, current adoption rates are low,” Laboure says.

Preparing for the day

As the example of Singapore suggests, the possibility of an extended wait for the widescale introduction of retail CBDCs is real. There is, after all, ample scepticism among politicians, and even some central bankers, about the very need for CBDCs. “A solution in search of a problem?” is a recurring question about CBDCs asked in recent months and years by authoritative sources who posit the view that a digital currency offers more risk than reward.

Private sector banks should not, however, assume that launches will be delayed indefinitely. Singapore’s MAS, for one, has made clear that it could bring forward the launch of its digital currency if “innovative uses emerge or there are signs that digital currencies not denominated in [Singapore dollars] are gaining traction as a medium of exchange locally”.

Retail banks will need to make preparations. That means, for example, readying their technology systems to be able to process CBDC transactions at scale; creating electronic wallets or other end-user interfaces so their customers can begin making CBDC transactions; and developing ideas for new services associated with the management of CBDCs. It is not too early for banks to begin taking such steps.

Central bank digital currencies launched or in pilot

Launched (all retail) In pilot
Anguilla

Bahamas

Eastern Caribbean

Antigua and Barbuda

Dominica

Grenada

Montserrat

Saint Kitts and Nevis

Saint Lucia

Saint Vincent and the Grenadines

Jamaica

Nigeria

 

 

Australia (retail, wholesale)

China (retail, wholesale)

Ghana (retail)

Hong Kong (retail, wholesale)

India (retail, wholesale)

Israel (retail)

Iran (retail)

Japan (retail, wholesale)

Kazakhstan (retail)

Malaysia (wholesale)

Tunisia (wholesale)

Russia (retail, wholesale)

Saudi Arabia (wholesale)

Singapore (wholesale)

South Africa (wholesale)

South Korea (retail)

Sweden (retail)

Thailand (retail, wholesale)

Turkey (retail)

United Arab Emirates (retail, wholesale)

Source: Atlantic Council Geoeconomics Center, Central Bank Digital Currency Tracker (data sourced September 1, 2023)

Baker McKenzie’s  Ashlin Perumall and Deutsche Bank’s Marion Laboure were interviewed as part of the global law firm’s The Next Decade in Fintech series.

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The Power Trio: How Sales, Finance, and Marketing Rescue PR from the ROI Dilemma

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The Power Trio PR from ROI Dilemma

By Philip Odiakose

Over the years, the conversation around PR measurement has evolved, yet one persistent challenge remains — how to prove the financial return on investment (ROI) of public relations efforts. I have shared my thoughts on this topic across multiple LinkedIn posts, and I felt compelled to provide a structured education on the subject.

Measurement education is a core pillar of AMEC Measurement and Evaluation , and as a strong advocate for data-driven PR, I believe it is crucial to guide PR professionals through this recurring challenge.

The reality is simple: If sales are not part of your key performance indicators (KPIs), then Return on Objective (ROO) should be your holy grail, not ROI. However, for PR campaigns where sales are indeed a primary goal, PR professionals cannot work in isolation — they need to engage with the “three wise men”: Sales, Finance, and Marketing.

A fundamental mistake many PR practitioners make is attempting to justify PR’s success using ROI without understanding the financial principles behind it. ROI, in its true form, is a financial metric that calculates the profitability of an investment using the formula: ROI (%) = (Net Profit / Cost of Investment) x 100.

For PR professionals aiming to showcase ROI, collaboration with the Finance team is essential to align media metrics with revenue generation. However, in most cases, PR is not a direct sales function, which means using ROI as a blanket metric leads to misinterpretation and misplaced expectations.

This is why AMEC’s Barcelona Principles (which emphasize outcome-based measurement over outdated methods) encourage PR professionals to focus on measurable objectives rather than vanity metrics like Advertising Value Equivalency (AVE). For those unfamiliar with these principles, I strongly recommend exploring them as a foundation for modern PR measurement.

One of the most misleading approaches in PR measurement is relying on AVE to demonstrate ROI. To put this into perspective, AVE in PR is like measuring the quality of a meal based solely on the price of its ingredients. Just because a dish contains expensive components does not mean it tastes good or satisfies the customer.

Similarly, AVE assigns a monetary value to media coverage based on ad rates but fails to measure the true impact, sentiment, or effectiveness of PR efforts. If a PR professional presents AVE as ROI, they are essentially equating visibility with tangible business outcomes, which is a flawed and outdated perspective. The goal should always be to measure what matters — impact, sentiment, engagement, and business outcomes — rather than placing a fictitious monetary value on earned media.

As a PR measurement specialist with over a decade of experience, I have consistently advocated for the prioritization of ROO over ROI for PR campaigns that do not have direct sales objectives. PR’s role is often about shaping perception, building credibility, and enhancing reputation — elements that do not always have an immediate or direct financial impact.

ROO provides a structured framework for evaluating PR performance based on predefined, measurable objectives. By aligning PR efforts with specific business goals — whether it be increasing brand awareness, driving website traffic, improving customer sentiment, or strengthening stakeholder relationships — PR professionals can provide meaningful insights without force-fitting sales metrics where they do not belong.

For PR to demonstrate true ROI when necessary, it must integrate seamlessly with Sales, Finance, and Marketing. Without correlating PR metrics with their data, PR teams cannot accurately tell the story of their contribution to revenue generation.

Marketing provides valuable insights into lead generation, Sales tracks conversions, and Finance ensures financial accountability. When these three functions work together, PR professionals can move beyond justifying their efforts with media impressions and start proving their impact in terms of business growth. This is why aligning client or executive expectations from the onset is critical.

By setting realistic measurement parameters, PR professionals can avoid the trap of being asked to prove ROI on campaigns that were never designed to drive direct sales in the first place.

The path to effectivePR measurement is rooted in education, collaboration, and the right frameworks. We must continue advocating for methodologies that reflect PR’s strategic value — beyond press clippings, beyond AVEs, and certainly beyond misaligned expectations.

Measurement is not about justifying PR’s existence; it is about demonstrating PR’s impact with the right metrics that align with business goals. As PR professionals, our focus should always be on setting SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) objectives that align with organizational priorities. This way, measurement becomes a tool for strategy rather than just a reporting mechanism.

As we move forward, I encourage PRprofessionals to embrace continuous learning, engage in industry conversations, and challenge outdated measurement methods. PR measurement is not static — it evolves with trends, technology, and business needs. Let us elevate our practice by ensuring that measurement is not an afterthought but an integral part of our communication strategy from the start.

Would love to hear others’ thoughtson this!

Philip Odiakose is a leader and advocate of PR measurement, evaluation and media monitoring in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMECNIPR, AMEC Lab Initiative and AMCRON

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Reducing Solar Panel Importation: A Path Toward Sustainable Energy in Nigeria

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Solar panel importation Nigeria

Nigeria, a country blessed with abundant sunshine, faces a significant challenge in its solar energy sector. Despite its vast potential for harnessing solar power, the sector struggles with high importation costs, slow adoption rates, and a reliance on foreign technology. In 2023, Nigeria imported over 4 million solar panels, valued at more than $200 million annually. This dependency on foreign imports not only inflates prices but also delays projects, stifling the growth of the renewable energy sector. The key challenge, therefore, lies in solving the gap in accessibility, quality, and cost-efficiency of solar energy products, while simultaneously driving local production and job creation.

A major part of the solution lies in reducing the importation of solar panels and fostering local production. By locally manufacturing Grade A solar panels, Nigeria can drastically lower procurement costs, improve delivery timelines, and create jobs for its growing population. This transition to local production could revolutionize the solar industry, making clean, affordable energy more accessible to Nigerians and accelerating the country’s progress toward energy sustainability.

The Impact of Import Dependence:

This heavy reliance on imported solar panels slows down the adoption of renewable energy technologies across Nigeria. The financial burden of import-related costs makes solar solutions less affordable for both businesses and households. Additionally, extended delivery timelines associated with international procurement delay critical solar infrastructure projects, hindering efforts to improve energy access, especially in rural communities.

Imported solar panels also pose quality control challenges. Products designed for different climates may not always meet Nigeria’s unique environmental conditions, leading to reduced efficiency and shorter lifespans. Moreover, dependency on foreign supply chains makes Nigeria vulnerable to global market fluctuations and geopolitical uncertainties, further threatening the stability and growth of its renewable energy sector.

The Local Solution: Manufacturing Grade A Solar Panels in Nigeria

To address these challenges, a strategic shift towards local manufacturing of Grade A solar panels is essential. By establishing local production facilities, Nigeria can significantly reduce procurement costs. This not only eliminates hefty shipping and import-related expenses but also stabilizes pricing, mitigating the impact of currency fluctuations.

Local manufacturing ensures faster delivery of solar products, cutting down project lead times. This agility allows for more efficient implementation of solar projects, enhancing the speed at which communities and industries gain access to reliable, clean energy. Additionally, local production can foster innovation, with products tailored to Nigeria’s specific climatic and environmental needs, ensuring higher performance and durability.

Driving Economic Growth and Job Creation

Beyond cost and efficiency, local solar panel manufacturing has the potential to stimulate Nigeria’s economy. It can create thousands of jobs across the value chain—from manufacturing and logistics to installation and maintenance. Developing local expertise in solar technology fosters a skilled workforce, reduces dependence on foreign technical support, and promotes sustainable economic growth.

The establishment of solar panel manufacturing plants can also attract foreign direct investment, as international companies seek partnerships with local firms to tap into Nigeria’s growing renewable energy market. This influx of investment can spur technological advancements, infrastructure development, and capacity building, positioning Nigeria as a regional hub for solar energy solutions.

Government’s Role in Accelerating the Transition

For Nigeria to fully harness the benefits of local solar panel production, the government must play a proactive role. Implementing supportive policies, such as tax incentives for local manufacturers, subsidies for renewable energy projects, and favourable regulatory frameworks, can encourage investment in the local solar panel industry. Additionally, public-private partnerships can drive innovation and expand access to financing for solar panel businesses.

The government should also invest in research and development to advance solar panel technologies tailored to Nigeria’s unique needs. Establishing training centres and technical programs can help build a robust workforce capable of supporting the solar industry’s growth, from engineering and design to installation and maintenance.

Conclusion

The solution to Nigeria’s solar energy gap lies in reducing the country’s dependence on imported solar panels and increasing local production. By manufacturing Grade A solar panels locally, Nigeria can lower costs, speed up delivery timelines, and create new jobs, contributing to both economic growth and energy sustainability. While there are challenges to be addressed, such as the need for raw materials and skilled labour, these can be overcome with strategic investments and partnerships. As Nigeria seeks to expand its renewable energy sector, local solar panel assembly stands as a critical opportunity to reduce costs, increase energy access, and pave the way for a greener, more sustainable future.

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Sen Babangida @61: A Catalyst of Northwest Sustainable Development

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Babangida Hussaini

By Ahmadu Dansardauna

Giant strides made by man are usually relieved with pomp and pageantry .While some roll out the milestone amidst glass clinging. Some play the breakthrough low but all in praise and in anticipation of a better future ahead.

In this momentous instance, the success story always overshadows the nauseating hurdles and barricades accompanying such feats. Naturally some people excel in various ways of life, they stand out in anything they venture into, they are shining light, and they shape their environment and their world.

Such individuals of unique poise are celebrated everywhere, an action which encourages them to reach their peak .thereby, serving as an impetus to the younger generation. How else can one describe a super public administrator and dynamic legislator  of no mean repute , Senator Babangida Hussaini(Jigawa Northwest), newly appointed Chairman Senate Committee on North West Development Commission as he clocks the age of 61.

Sen Babangida Hussaini is a leader with an impressive background in administrative affairs, educational planning and community development service delivery. His expertise spans various domains, including public administrative affairs, policies, strategic matters, human resources development and educational administration. Over the years, he has made significant contributions to the nation’s development through his work with administrative and educational consultants, donor-funded organizations, NGOs/CBOs and international/national bodies.

Babangida Hussaini who was born on February 6, 1964 in Kazaure, Jigawa State, holds a BSC and MSC degrees in Public Administration from Ahmadu Bello University Zaria and the Nigerian Defence Academy, Kaduna, respectively.

He began his public Service career in 1987 with the Kano State Government in 1991. In 2011 he transferred his service to the Federal Civil Service and rose to the position of a Permanent Secretary in 2020. He assumed office as the Permanent Secretary, Federal Ministry of Defence in September, 2020 before his redeployment to Federal Ministry of Works and Housing as the Permanent Secretary in December, 2020.

Babangida Hussaini played a pivotal role in various national assignments, showcasing his dedication to public service and knack for excellence. He is currently serving as the senator representing Jigawa North West, where he contributes to legislative duties of making laws, committee duties, oversight on the executive and ensuring accountability.

As permanent secretary of Federal Ministry of Works and Housing from Dec 2020-Feb 2022 as chief accounting and administrative officer he has facilitated policy implementation ,financial management and planning .He was earlier at the Ministry of Defence as Permanent Secretary  where he provided policy direction and support to the defence Minister from September 2020-December 2020.

Mr Babangida’s foray into the volatile political terrain after the serene confines of his public service has set a new research trend on the professionals in politics as his actions and utterances have redefined politics from the pejorative sense of the word.

He has completely rubbished the beautiful and well researched theory of the English philosopher and social analyst, New Clive, who claimed that “What politicians lack is not shortage of towering promises; what they appear to have in abundance is a congenital capacity to default on their promises”.

In his success story, few people erroneously tend to view it as if he employed underhand tactics to achieve them and in the process underestimate his Midas touch. The fact remains that he attained his present height through dint of hard work and unparalleled exhibition of moral discipline.

Senator Babangida perfectly described the words of Ralph Waldo Emerson, when he postulated (to be yourself in the world that is trying to make you something else is the greatest accomplishment). A man who is tall, his accomplishments are taller than him. A man of lofty ideals, humility and generosity; he paradoxically has a simple philosophy of life and corresponding approach to challenges.

In recognition of his hard work, philanthropic activities and community engagement, Senator Babangida was conferred with the traditional title of Wali Kazaure by the Kazaure emirate council.

When the Senate Leadership began searching for the name of the Senator to Chair the important committee on Northwest Development Commission, one name kept ringing that is Dist Senator Babangida Hussaini (Walin Kazaure).

In his acceptance of the role he noted that role presents a significant responsibility to drive sustainable development, enhance infrastructure, and address key socio-economic challenges affecting the region.

“As we embark on this crucial task, I am committed to ensuring that the Commission fulfils its mandate efficiently and transparently, fostering inclusive growth and improving the livelihoods of our people.

“Through strategic policies, legislative oversight, and collaborative efforts, we will work towards unlocking the full potential of the North West region.

“I look forward to engaging with stakeholders at all levels to advance initiatives that will have a lasting impact. Together, we will insha Allah build a stronger, flourishing and more advancing North West which will contribute to a progressive Nigeria,” Senator Babangida posited.

His legislative priorities are education, health, good roads, and water. Also accredited to him are the following: sponsorship of students scholarships, infrastructural development which includes: solar street lights, hand pump and motorized boreholes, renovation of primary healthcare centres, building of skills acquisition centres, lobbying for the construction of roads and renovation of secondary and primary schools.

He is an advocate for Youth Empowerment and poverty alleviation. He has achieved these through: issuing of grants to the Youths and providing welfare packages to the less privileged long before his election for political office.

Walin Kazaure commands a lot of respect from his colleagues, largely due to the way he articulates his ideas and thoughts each time he speaks on the floor of the house as his colleagues listen with rapt attention whenever he contributes to any debate or table a motion which comes in regularly. His calmness and maturity has earned him the nickname “the stabilizer”, amongst friends and colleagues, many of whom consult him for advice which has come in handy more than a few times.

As a parliamentarian, Dr Babangida Hussaini (Walin Kazaure) has brought new meaning to representation by positively impacting on lives of the people he swore to serve diligently and honestly. His love for the people is expressed in the most outstanding unique people-centred legislation and selfless service.To borrow from the Greek writer Homer,” he is both a speaker of words and doer of deeds .benevolent and highly spirited.”

The story of the red chambers’ point man is that of triumph of human vicissitude. His life is proof that with strong will to succeed in life and divine nod to one’s actions, one can turn all obstacles to blessings. The journey through life is often one that carries with it a very strong desire for self-fulfillment, fulfillment of one’s dreams, desires, aspirations or even goals. Sometimes, this manifest celebration over accomplishments or bowed heads over dashed hopes. The visionary parliamentarian should be celebrated by all and sundry as he clocks 61 years of valuable contribution to humanity, constituency, Jigawa, Northwest region and Nigeria as a whole.

Dan Sardauna wrote in from Abuja

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