News
‘Digitization of Social Protection, Humanitarian Payments Enhancing Financial Inclusion in Nigeria’
A joint report from FSD Africa, Enhancing Financial Innovation and Access (EFInA) and the GSMA, and conducted by Strategic Impact Advisors (SIA), has revealed that a gradual transition from physical cash transfers to digital would improve the recipients’ usage.
The report noted that although this transition will not be immediately possible everywhere due to limited network connectivity, low mobile phone ownership levels, and low literacy rates among other barriers, it outlined different opportunities for social protection and humanitarian actors, and the private sector, to work together to support increased access to digital payments for poor and vulnerable recipients of assistance.
The Central Bank of Nigeria (CBN) has been championing the government’s efforts by designing policies that could enhance the transition from physical cash transfers to digital. The CBN is committed to achieving their 95% financial inclusion target set for 2024.
The report, “Opportunities and Barriers to Digitising Social Protection and Humanitarian Payments in Nigeria,” highlighted the opportunities within digitisation of cash transfers and presented a roadmap for its actualisation.
The study reinforces the need to create an ecosystem in which recipients could eventually access cash transfers on a permanent digital wallet through their mobile phones, leading invariably to multi-choice usage, which they can then use to transact to meet all of their needs and help to reduce reliance on physical cash.
Also, the report offers recommendations to improve Nigeria’s capacity to deliver digital payments to the poor.
It points out the need for humanitarian and social protection organizations to work in partnership with the Government and financial service providers to support an enabling environment to reach last mile recipients, the importance of coordination to promote a more cohesive use of cash transfers wherever appropriate, and efforts to better inform the development and extension of relevant services by payment providers wherever feasible.
The report noted that there are pockets of digital transaction-ready recipients who could support the development of digital payment ecosystems and help to advance financial inclusion. Although digital payments will not be enough to bridge the financial inclusion gap in Nigeria, access to digital payments is an integral component and this report charts out practical next steps.
Commenting on the report, Director – Digital Economy at FSD Africa, Juliet Munro said: “Cash transfers are a vital source of income for many underserved households.
“We are delighted about the ongoing conversations with our partners on the existing possibilities to digitise cash payments. Once the systems are in place, the targeted households will be able to access the much-needed aid faster and more efficiently.”
CEO at EFInA, Ashley Immanuel said: “Fintech Innovation is a key driver of financial inclusion and very useful in providing access to financial services, especially for the underserved. Digitising cash transfers will help reduce the burden for cash disbursement and support recipients’ application of healthy financial habits like saving.”
On his part, Development Director at FCDO Nigeria, Chris Pycroft, said: “Really encouraged to see this report highlight principled and important opportunities for development actors to support increased access to payments among the poor, lay the foundations for financial inclusion, and harness Nigeria’s growing Fintech scene.”
Nigeria is to phase out solar panel imports to promote local manufacturing and advance Nigeria’s shift towards clean energy, according to Uche Nnaji, minister of Science and Technology.
Uche Nnaji, minister of Science and Technology
Nnaji who spoke at the unveiling of the NEV T6 electric buses in Abuja, stated that the decision aligns with a presidential directive prioritising local content in science, engineering, and technology.
He highlighted Nigeria’s capacity to produce its own solar panels, with the National Agency for Science and Engineering Infrastructure (NASENI) playing a key role in local manufacturing.
He projected that as domestic production grows, more households and institutions would transition to off-grid solar power solutions.
“We have lithium in abundance here in Nigeria, so Mr. President is already taking action. We are adding value to our raw materials. The lithium we have here will be processed and used as batteries for these vehicles,” Nnaji said.
Addressing the country’s power challenges, the minister revealed that the government is developing mini-grid solutions to provide reliable energy for hospitals, institutions, and homes.
“If you look at our budgets, we have what is called mini-grids all over the place. In less than three or four months, you will start seeing our hospitals and institutions being powered by solar,” he stated.
Nnaji emphasised that the government’s approach focuses on sustainability and environmental protection.
“Again, we are saving the environment; we are putting in place non-carbon emission infrastructure. So, we are creating power everywhere. It is not about using diesel, it is not about using PMS, it is not about generating the kinds of power that will pollute the environment.”
He pointed out that NASENI and private companies have already begun producing solar panels locally, making it feasible to discontinue imports.
“With NASENI here, you know that we have panels. It has a factory that has started producing solar panels, and other private individuals are also producing solar panels as we speak.
“So, all we need to do is, even through science and technology, through our Presidential Executive Order No. 5, we will stop all these importations of solar panels.
“We will support our local industries to grow, and very soon, most houses will go off-grid. Personally, I have been off-grid for over three years, and it is working.”
Federal government of Nigeria has said that it has received a N1 billion grant from Airtel Africa Foundation to boost its 3 million Technical Talent initiative (3MTT).
Championed by Dr. Bosun Tijani, minister of Communications, Innovation, and Digital Economy, as part of President Bola Ahmed Tinubu’s strategic talent-building initiatives for the tech sector, the 3MTT programme aims to bridge the digital divide and position Nigeria as a key player in the global technology landscape.
Tijani said the grant will be deployed towards training and empowering over 25,000 Nigerians with in-demand technical skills under the 3MTT program.
“Today we received a N1 billion grant from the Airtel Africa Foundation for our 3MTT Nigeria program.
“The grant will cover hands-on training, community engagement, and job placement initiatives, all with the objective of enhancing Nigeria’s digital workforce in alignment with H.E President Bola Tinubu’s Renewed Hope Agenda.
“Grateful to the Airtel Africa Foundation for collaborating with us as we work to position Nigeria as a key player in the global technology landscape,” the Minister stated.
Tijani noted that the 3MTT program is a cornerstone of the government’s commitment to building a robust digital economy in Nigeria.
In his remarks, Dr Segun Ogunsanya, chairman, Airtel Africa Foundation, highlighted Airtel’s dedication to the growth of Nigeria’s economy through the support of its key levers.
He stated that Airtel believes in the power of technology and digital skills to unlock new opportunities, drive economic growth, and uplift communities.
According to him, the 3MTT programme is a bold step towards ensuring that Nigerian youths are not just participants in the digital revolution but leaders in it.
“Our N1 billion support is a strategic investment in Nigeria’s future workforce and prosperity,” he said.
Dr. Bosun Tijani, minister of Communications, Innovation, and Digital Economy, on Wednesday, after receiving the cheque from the Foundation’s Chairman, Dr Segun Ogunsanya.
The Senate on Tuesday deplored what it described as violations of the principles of federal character in the appointments, recruitments and promotions in some key federal institutions and agencies.
Specifically, the upper legislative chamber fingered the Nigerian National Petroleum Company Limited (NNPCL), Pension Commission (PENCOM), the Nigeria Deposit Insurance Corporation (NDIC) and several other Ministries, Departments and Agencies (MDAs) as culprits.
The matter was a subject of debate at plenary as Senator Osita Ngwu called the Senate’s attention to the alleged violations through a motion.
Ngwu’s motion, entitled “Urgent Need to Address Systemic Abuse and Ineffective Implementation of the Federal Character Principle in Nigeria’s Public Sector,” got the attention of the lawmakers.
Ngwu, who led the debate, cited Sections 14(3) and 14(4) of the 1999 Constitution, which explicitly prohibit the dominance of individuals from a few states or ethnic groups in federal institutions.
He observed that while recruitment opportunities are limited, promotions are often based solely on years of service rather than merit, leading to the continued marginalisation of certain regions.
According to him, the lack of accountability in enforcing federal character principles has compromised fairness in the public sector, with senior-level recruitments often influenced by cronyism instead of competence.
Ngwu further observed that while the federal capital principle aims to balance merit with equitable state representation, its poor implementation has negatively affected discipline, morale, and institutional efficiency.
According to him, “The federal character principle, entrenched in the 1999 Constitution of the Federal Republic of Nigeria, mandates fair representation in federal appointments to reflect the linguistic, ethnic, religious, and geographic diversity of the nation.”
He continued, “Section 14(3) and (4) of the Constitution unequivocally stipulate that ‘no predominance of persons from a few states or a few ethnic or sectional groups’ should exist within the federal government or its agencies.”
Ngwu listed the NNPCL and its subsidiaries, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the National Agency for Food and Drug Administration and Control (NAFDAC), the Nigerian Ports Authority (NPA), PENCOM, NDIC, the Federal University of Technology Akure (FUTA), the National Library of Nigeria (NLN), the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Energy Commission of Nigeria (ECN), the Solid Minerals Development Fund (SMDF), and the Nigerian Nuclear Regulatory Authority (NNRA) as non comliant entities.
He accused them of consistently failing to adhere to federal character Mandates, and often bypassing regulations in their recruitment exercises.
Ngwu warned that unchecked violations of federal character laws would continue to erode the effectiveness of key legislative provisions.
He listed the affected legislative provions to include Section 14(d) & (e) of the Legislative Houses (Powers and Privileges) Act, 2017, Part I(1)-(2) of the Subsidiary Legislation 23 of 1997, and Section 11(2) of the Freedom of Information Act, 2011.
He also raised concerns about the lack of independence of the Federal Character Commission (FCC).
Ngwu observed that despite the Commission’s constitutional mandate, it remains weakened by underfunding, political interference, and a lack of enforcement power.
While approving the probe of the affected entities, the Senate directed its Committee on Federal Character and Inter-Governmental Affairs to conduct investigative hearings into their activities.
The committee is expected to submit its findings within four weeks.
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