E-Financial
Covid-19: Opportunity for Govt Payment Digitization and Financial Inclusion in Africa
By Emmanuel Okoegwale
Since the beginning of 2020, the World had been gripped by the unprecedented COVID-19 pandemic crisis affecting millions of people across all the continents including Africa with global Health institutions and National governments mandating partial or full closure of economic, transportation, social activities which then necessitated governments interventions to reduce impacts to the vulnerable segments of the society through different programs.
In different forms across Africa, citizens are getting cash from their governments via diverse programs such as Public Works for unemployed persons, social pensions, child support, old age persons and disability grants, social relief, unemployment grants, cash transfer programs, disaster reliefs etc
Governments across Africa often lack the capacity and systems to deliver benefits digitally, to final recipients and cash is the de-facto standard to achieve the three Rs: Paying the RIGHT person, the RIGHT amount at the RIGHT Time whereas digital payment, can guarantee payment certainty with better outcomes.
Due to the contagion nature of the Covid-19, the World Health Organization is encouraging and advising citizens to switch to digital and contactless mode of payments to reduce the risk of face to face transactions. Physical cash had not been proven to transmit the virus, but the physical activities associated with cash, can be a risk.
In most parts of Africa, millions of people do not have access to basic financial services due to many factors such as low literacy, low mobile device ownership, lack of acceptable identification, limited bank branches, low economic activities which presents a compelling opportunity for government interventions (emergence, short or long term) as a leverage for payment digitization and financial inclusion which can address all the issues militating against the access to formal financial services since governments can provide or waive some requirements and address the low economic activity of intended beneficiaries through the government grants payment.
Digitization will help governments to scale their coverage and reach, in an effective and efficient manner such that millions can be reached instantaneously and simultaneously.
It will save governments enormous cost, improve citizen’s trust, improve accountability, transparency of interventions, reduce physical barriers especially in many parts of Africa with significant infrastructural deficiencies across urban and rural areas.
Aside the scale that can be achieved by going digital, it will also improve economic empowerment of the beneficiaries by enabling access to other basic financial services such as saving, credit, insurance, remittances etc and improve overall economic participation of excluded groups.
Building a digital ecosystem is desirous however care must be taken to ensure the right human and technology capacities are available to transition from cash to digital platforms with the right regulatory environment and support, required to implement such while putting the beneficiary as the central focus when designing the digital systems and processes in highly fragmented digital ecosystems in many parts of Africa.
Some positives already emerging across Africa with financial regulators reducing or removing transaction fees like in Ghana and Kenya while South Africa’s Social Security Agency recently tested registration via WhatsApp and USSD for R350-per-month Covid-19 unemployment grants due to be paid to about six millions people over the next six months and will displace physical food parcels delivered as part of normal relief-of-distress grants.
Malawi will soon launch an emergency cash transfer program targeting about 1 million people and small businesses affected by the coronavirus pandemic with eligible households receiving 35,000 Malawi kwacha ($40) monthly payment through mobile cash transfer starting in May while Namibia already paid the first batch of 147,000 grantees, digitally in April.
New approaches in making government to person payments require diverse approaches due to different segments of the community targeted however with proper community and beneficiary segmentation, National governments will be able develop and deplore appropriate payment mechanism that can replace the use of cash and foster financial inclusion which will enable millions to exit the poverty trap.
When governments move their social grants to digital platforms, it creates a platform for access to other basic financial services which are beneficial to the governments, businesses, and the beneficiaries.
Emmanuel Okoegwale can be reached on emmanuelok2007@gmail.com
Sterling Bank has launched a ₦2 billion scholarship initiative to support Nigerian students in private universities. The program, Beyond Education, was unveiled on Democracy Day and aims to remove financial barriers to higher learning.
The bank will fully sponsor 600 students from across Nigeria’s 36 states and the FCT to study Technology, Finance, Sales, and Public Health at Miva University, founded by Sim Shagaya. The selection process is merit-based, with candidates nominated by themselves or others, and final selection determined through public voting open to Sterling account holders.
Sterling Bank’s CEO, Abubakar Suleiman, described the initiative as an investment in Nigeria’s future, aligning with the bank’s commitment to Health, Education, Agriculture, Renewable Energy, and Transportation. The bank has already deployed over half a trillion naira in financing across these sectors.
According to Obinna Ukachukwu, Growth Executive at Sterling Bank, the program is about creating opportunities beyond education. The bank is shifting from short-term philanthropy to long-term ecosystem development, with investments in digitized healthcare, school financing, agricultural cooperatives, solar energy, and transport systems.
“Nigeria’s progress requires action,” Suleiman said. “We are funding the future architects of the country—those who will build the businesses, institutions, and innovations needed for national prosperity.”
Nominations for the Beyond Education scholarships are now open at www.sterling.ng/FUTURE. The initiative sets a precedent for private-sector-driven education investment, where success is measured not just in profit, but in people empowered.
Federal Government of Nigeria has signed a Memorandum of Understanding (MoU) with Investonaire Academy to train 100,000 young Nigerians annually in forex trading, financial planning, and risk management.
The agreement, signed in Abuja, was announced by Omolara Esan, Director of Information and Public Relations at the Federal Ministry of Youth Development. According to her, the initiative is part of the government’s broader strategy to reduce youth unemployment and enhance financial inclusion.
At the signing ceremony, Minister of Youth Development, Comrade Ayodele Olawande, described the partnership as a milestone in the ministry’s efforts to equip young Nigerians with practical financial skills. He emphasized that the programme would foster critical thinking, improve digital literacy, and expand access to global economic opportunities.
Speaking on the collaboration, Dr. Enefola Odiba, International Programme Director at Investonaire Academy, highlighted the importance of empowering youth with relevant financial and digital skills. He described young people as essential drivers of innovation and national development.
The ministry assured that the programme would be implemented with transparency and measurable outcomes, ensuring that participants gain practical expertise in forex trading and financial planning.
The Federal Government has recently intensified efforts to boost skill development across various sectors. A separate plan aims to train 100,000 artisans nationwide, following the successful upskilling of 29,000 individuals in previous phases. This initiative seeks to professionalize vocational trades, eliminate quackery, and introduce licensing systems.
Additionally, technicians from specialized institutions will receive industry-standard training to strengthen Nigeria’s labor force and increase self-reliance in skilled professions.
Through these efforts, the government hopes to position Nigerian youth for economic success both locally and globally.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
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