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British Envoy Lauds Lagos Govt on Cashless Policy and Financial Inclusion Drive

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Ben Llewellyn-Jones, British Deputy High Commissioner (DHC)
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Ben Llewellyn-Jones, British Deputy High Commissioner (DHC) has lauded Lagos State for driving cashless policy and financial inclusion in Nigeria

He stated this on Wednesday, while delivering a keynote address at the second edition of the Lagos Fintech Week themed “Setting Agenda for Cashless Lagos”.

Speaking on the benefits of a cashless system, Llewellyn-Jones explained that electronic transactions can save time, increase business productivity, safety and tax revenue, reduce corruption and facilitate work against money laundering and terrorism.

He lauded the key role played by Lagos State in developing solutions that are helping to drive broader financial inclusion nationwide, noting that the rate of financial access and inclusion is much higher in Lagos than the rest of the country, but said more remains to be done.

He said: “If there is a silver bullet for financial inclusion, but also cashless Lagos, it is mobile money.

“The new payment service banks will serve people who the traditional banks regard as too poor to be of interest. Mobile money transfers are also suitable for small payments.

“Among our neighbours in West Africa mobile money is gaining traction In Burkina Faso, Cote D’Ivoire, Senegal and Ghana, the proportion of people with mobile money accounts ranges from 33 to 45% (Ghana).

“In Kenya more than 80% of the population has mobile money whereas it is only just starting in Nigeria.

“Based on some recent modelling for UKAid the proper roll out of mobile money could add about 46 million people to the Nigerian financial system, boost GDP by 12% and create 3 million jobs in Nigeria.”

He noted that Mobile money accounts would represent the first step for many towards accessing other financial services – the transaction data would enable them get savings accounts and loans. People can also use mobile money to pay in instalments for their solar home systems – helping the 5m solar energy connections project.

According to him, “Given this, the UK is pleased to see the issuance of the first Payment Service Bank licences (officially launched in August 2020) in Nigeria and hopes with regulator support to see services starting soon in Lagos.

“The expectation is that Nigeria could catch up fast with the support of the regulator, which is a key participant needed to keep consumers and the financial system safe.

“We continue to encourage the Federal Government of Nigeria to lead the way with facilitating electronic payments for Government to consumer services, for the Central Bank of Nigeria (CBN) to approve applications for Payment Service Bank licences, and to set up the “Know Your Customer” arrangements e.g., Bank verification number etc., in ways that are easier for low-income Nigerians to access.

“Removing the caps on digital agent fees is also an important step to ensure that agents who are in remote areas can make money while ensuring that the needs of the underserved are met.

“Increased demand e.g. from mobile money will lead more agents to enter the market and spur competition that would then drive prices down.

Similarly Ben Llewellyn-Jones, said EFInA (the UK financial inclusion entity in Nigeria) can support the regulator and provide examples of KYC for low-income earners, as well as provide best practice regulation for Fintechs.

“With some more reforms building on the exciting Payment Service Bank licence issuance, there are some real strides to be made towards not just a cashless Lagos but also a connected and cashless Nigeria,”he said.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Financial

SERAP Gives CBN 48-Hour Ultimatum to Withdraw ATM Fee Hike

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Socio-Economic Rights and Accountability Project (SERAP) has called on the Central Bank of Nigeria (CBN) to immediately revoke its recent increase in Automated Teller Machine (ATM) transaction fees, describing the move as “Patently unlawful, unfair, unreasonable, and unjust.”

SERAP Gives CBN 48-Hour Ultimatum to Withdraw ATM Fee Hike

In an open letter addressed to Olayemi Cardoso, governor, CBN, and dated February 15, 2025, SERAP warned that the fee hike would worsen economic hardship for millions of Nigerians, particularly those at the lower end of the financial spectrum.

The rights group gave the apex bank a 48-hour deadline to reverse the policy or face legal action.

The CBN’s new directive mandated that ATM withdrawals at off-site locations, such as shopping malls, airports, and standalone cash points, will attract an N100 charge per N20,000 withdrawal.

Additionally, a surcharge of up to N500 may apply for transactions conducted at certain locations. The new fees are set to take effect from March 1, 2025.

In its letter, signed by Kolawole Oluwadare, deputy director, SRERAP criticized the policy, arguing that it would disproportionately affect struggling Nigerians while benefiting commercial banks.

“The manifestly unfair increase in ATM transaction fees will hit hardest those at the bottom of the economy and exacerbate the growing poverty in the country,” SERAP stated.

The organization further argued that financial institutions should bear the cost of banking operations, rather than shifting the burden onto customers, particularly those with limited financial means.

SERAP accused the CBN of prioritizing the interests of banks over the welfare of ordinary Nigerians, many of whom already struggle with the high cost of living.

The group pointed out that banks continue to report record-breaking profits while imposing excessive charges on customers.

“CBN policies should not be skewed against poor Nigerians and heavily in favour of banks that continue to declare trillions of naira in profits, mostly at the expense of their customers.

“The increase in ATM transaction fees will inflict misery on Nigerians and contribute to human rights abuses,” the letter read.

SERAP also noted that the policy contradicts President Bola Tinubu’s commitment to tackling poverty in Nigeria.

The rights group argued that the CBN’s action violates multiple legal provisions, including the Nigerian Constitution, the CBN Act, and the Federal Competition and Consumer Protection Act.

SERAP highlighted specific sections of these laws that prohibit unfair business practices and protect consumers from exploitative charges.

According to SERAP, the increase in ATM fees discriminates against low-income Nigerians who may struggle to afford the higher fees, creates a two-tiered financial system that favours the wealthy, contradicts the CBN’s stated mission to promote national economic well-being, and violates international human rights obligations under the United Nations Guiding Principles on Business and Human Rights,

“The CBN has responsibilities under the UNGPs to take effective steps to avoid or mitigate potential human rights harm and to consider ending any charges or transaction fees where severe negative human rights consequences cannot be avoided or mitigated,” SERAP asserted.

“We would be grateful if the recommended measures are taken within 48 hours of the receipt and/or publication of this letter.

“If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the CBN to comply with our request in the public interest,” the letter warned.

 

 

 


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FG Seeks Fresh $300m Loan from World Bank for Health Security

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Federal government has engaged the World Bank for a fresh $300m loan to strengthen Nigeria’s health security infrastructure.

FG Seeks Fresh $300m loan from World Bank for Health Security

Information obtained from the World Bank showed that the loan, which is under consideration, will be implemented by the Nigeria Centre for Disease Control (NCDC) with the Federal Ministry of Finance acting as borrower on behalf of the Federal Government.

According to information on the World Bank website, the loan project is expected to “increase regional collaboration and health system capacities to prevent, detect, and respond to health emergencies in the Federal Republic of Nigeria.”

The project is currently in the pipeline stage, with the disclosure date scheduled for February 6, 2025.

The World Bank board is expected to give its approval on July 30, 2025, following necessary assessments. The appraisal is set for April 14, 2025, and implementation will commence in the 2026 fiscal year.

According to a document on the concept of environmental and social review, the Nigeria Health Security Programme aligns with broader government efforts to enhance disease surveillance, diagnostic capabilities, emergency response, and laboratory networks across the 36 states and the Federal Capital Territory.

The programme’s primary objective is to enhance regional collaboration and strengthen Nigeria’s health systems to deal with emergencies. It falls within the World Bank’s investment in health, nutrition, and population sectors across Western and Central Africa.

According to the Environmental and Social Review Summary of the project, HeSP will expand molecular laboratory capacity, upgrade primary healthcare centres, establish emergency operation centres, and construct warehouses.

It will also deploy mobile laboratories and install water, sanitation, and hygiene facilities alongside solar energy systems to support health infrastructure improvements.

Although the total project cost is yet to be determined, the World Bank has committed $300m to the initiative. The funds aim to bolster Nigeria’s pandemic preparedness and improve response mechanisms for public health threats.

The initiative comes as Nigeria strengthens its public health infrastructure following lessons from previous outbreaks, including COVID-19.

If approved, the loan will support the NCDC in improving disease surveillance, diagnostics, emergency response, and laboratory services.

Nigeria has previously secured funding from international financial institutions to boost healthcare resilience, including financing for vaccine procurement, emergency medical services, and infrastructure development.

However, the project, categorised as a high-priority public health intervention, carries substantial environmental and social risks due to potential health, safety, and ecological concerns associated with infrastructure expansion.

Identified risks include increased medical waste, occupational hazards, and heightened energy and water demands.

Social risks range from potential grievances from stakeholders to concerns over land acquisition and implementing health interventions in conflict-prone areas.

 


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CardinalStone Acquires Radix Pension Managers

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Multi-asset management firm CardinalStone Partners Limited has announced the successful acquisition of a majority equity stake in Radix Pension Managers Limited.

 

Following this acquisition, Radix Pension Managers Limited has been rebranded as CardinalStone Pensions Limited, a statement from the firm read over the weekend.

CardinalStone Partners Limited thus solidifies its position as a key player in Nigeria’s financial landscape, leveraging its expertise and resources to enhance CardinalStone Pensions’ operations and service delivery. This transition represents a significant milestone in the firm’s strategic expansion in the pension industry.

CardinalStone Partners Limited, renowned for its comprehensive financial services catering to institutional and high-net-worth clients, boasts a team of seasoned investment professionals with a proven track record of visionary leadership.

On the acquisition, the Group Managing Director of CardinalStone, Michael Nzewi, said, “Our collective strength provides us with the pivotal opportunity to strengthen our position in the pension industry and broaden our range of services for our valued clients.

“By integrating the expertise and resources of all businesses in the CardinalStone Group, we are poised to deliver even greater value and innovative solutions to our customers across the board.”

Despite the change in ownership and brand identity, there will be no disruption to the operations of CardinalStone Pensions.

The firm will continue its business operations as a Pension Fund Administrator, the statement further highlighted.

 


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