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E-Financial

New Vista to Deepen Financial Inclusion Beckons with COVID-19

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The Covid-19 pandemic is forcing companies, especially those in the financial services sector to rethink their strategies. This is because during the Covid-19 complete lockdown of some parts of the country, financial transactions and payments were largely carried out through Digital finance services platforms. Now, some banks are considering focusing more on delivery services much more through the platforms.

However, in spite of its positive impacts on moving the economy while the lockdown lasted, it opened opportunity to develop other aspects of the ecosystem such as reducing the number of financially excluded in the country as well as providing robust digital financial tools.

According to Fasasi Sarafadeen Atanda, managing director, Ecosystem Hybrid Network – a banking agent, “the pandemic provided good opportunity for digital financial services initiatives to achieve its goal as it encourages social distancing as well as discourages the use of cash in transactions which are some of the things DFS guarantee. Unfortunately, we did not optimize that opportunity because we didn’t plan for it.

“What we should have done was to prepare for expansion of digital financial services to serve more people. The crowd witnessed at bank branches immediately the lockdown order was eased means that great number of Nigerians still rely on conventional banking.

“We expected federal government and other stakeholders to have capitalised on the opportunity to open more accounts for unbanked population thereby reducing the number of financial excluded rate.

“When giving financial palliative, instead of giving cash directly to people, they would have been advised to open account at banking agents’ locations that were operating during the lockdown and root the payment through their account. Brazil did it and it worked.

For Emmanuel Okoegwale of Mobilemoney Africa: “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”.

Atanda however, noted some of the flaws experienced with digital financial services during the lockdown which need to be improved upon, among them were long turnaround time for complaints arising from transactions not consummated and poor telecom network. “Except for NIBSS gateway that was itch free with absolutely zero downtimes, telcos had poor network arising from congestion.

“More so, during the period of lockdown customer care service attendants were working remotely and they faced connectivity issues due to congestion as well as power failure at their homes making it difficult for some of them to respond to calls and resolve transaction issues within a record time.”

He decried incessant harassment by law enforcement agents who are not aware of exemption of banking agents from the lockdown as essential service.

On liquidity issue faced by banking agents, he attributed it to the fact that banks and central bank of Nigeria did not make adequate arrangement for designated bank branches to support Agents’ outlets with liquidity.


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E-Financial

Smartcash PSB Launches Access to Instant Motor Insurance via Leadway Assurance

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In continuation of its mission to make financial services simpler, faster, and more accessible, SmartCash Payment Service Bank, a subsidiary of Airtel Nigeria, has announced a strategic partnership with Leadway Assurance to offer Smartcash users an effortless access to Leadway’s mobile-friendly motor insurance service.

Starting from ₦15,000, this new offering provides a convenient and affordable way for motorists to stay protected and compliant with national insurance requirements. With this collaboration, new and existing Smartcash customers can now acquire or renew two types of Leadway Assurance motor insurance: the Third-Party Insurance and AutoBase Comprehensive Insurance, directly on the Smartcash app or by dialling *939#.

While the third-party motor insurance plan offers the legally required minimum cover, protecting motorists from liability for damages or injuries caused to others, the AutoBase Comprehensive Insurance plan extends that protection to cover the user’s own vehicle in the event of accidents.

Commenting on this partnership, Chief Executive Officer, Smartcash PSB, Tunde Kuponiyi highlighted the importance of the collaboration in driving convenient and inclusive insurance access for Nigerians.

“At Smartcash, our goal has always been to bring inclusive financial solutions closer to everyday Nigerians. By partnering with Leadway Assurance, we’re making it easier for motorists to insure their vehicles without stress or delays. It’s insurance that moves at your speed,” he said.

He also noted that Smartcash users can complete the entire purchase process in under three minutes, from plan selection to payment with no physical paperwork or documentation required. Customers receive instant confirmation and their digital policy documents via email, making insurance more accessible than ever.

Also speaking on the partnership, Kike Fischer, Director, Sales, Retail and Partnership, Leadway Assurance, added: “At Leadway, innovation and exceptional service are at the core of our mission to deepen insurance penetration and inclusion.

“This collaboration with SmartCash enables us to deliver real-time protection to more Nigerians via a trusted, everyday platform. It marks a bold step in transforming how insurance is accessed and experienced across the country.”

The insurance integrated service is also fully inclusive, as it works across all types of mobile phones. Users without smartphones or internet access can access the same features via USSD, ensuring nationwide reach, especially in rural and underserved areas.

This partnership reinforces Smartcash’s commitment to delivering digital-first financial services that meet the real-world needs of Nigerians. By simplifying access to essential products like motor insurance, Smartcash continues to empower users with tools that protect, support, and uplift their daily lives.

 


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E-Financial

Fidelity Bank Refutes ₦5 Billion Bail Payment Claim, Labels Report “False”

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Fidelity Bank has dismissed allegations that its Managing Director, Nneka Onyeali-Ikpe, paid ₦5 billion to evade police detention amid an ongoing fraud investigation.

The bank described the report, published by Sahara Reporters, as “malicious” and aimed at misleading the public.

The controversy arose from a recorded conversation in which Onyeali-Ikpe allegedly referenced ₦5 billion in connection with her bail.

However, Fidelity Bank clarified that the amount referenced was a bail bond signed on self-recognizance—not a direct payment to the police.

Authorities later withdrew fraud charges against Onyeali-Ikpe, with the Attorney General of the Federation citing justice, fairness, and lack of evidence implicating her in the matter.

Fidelity Bank emphasized its commitment to strong corporate governance and adherence to ethical standards.


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E-Financial

CBN Suspends Dividend, Bonus Payments for Banks under Forbearance

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Central Bank of Nigeria (CBN) has suspended dividend payments to shareholders and bonuses to directors and senior management staff of banks currently benefiting from regulatory forbearance.

CBN Suspends Dividend, Bonus Payments for Banks under Forbearance

Forbearance refers to the temporary reduction or postponement of payments, such as for loans or mortgages, usually introduced to give temporary relief to individuals, and corporations, including financial institutions encumbered by financial straits.

The directive was contained in a circular dated June 13, signed by Olubukola Akinwunmi, director of Banking Supervision, CBN.

According to the CBN, the move is part of efforts to strengthen capital buffers, enhance balance sheet resilience and promote prudent internal capital retention within the banking sector during what it described as a transitional period.

The regulatory forbearance arrangement, which allows banks some relief in meeting credit exposure and Single Obligor Limit (SOL) requirements, is currently being reviewed by the central bank in terms of capital positions and provisioning adequacy.

As part of this review, the CBN directed affected banks to suspend dividend payments, defer bonuses, and refrain from making investments in foreign subsidiaries or launching new offshore ventures.

“This temporary suspension is until such a time as the regulatory forbearance is fully exited and the banks’ capital adequacy and provisioning levels are independently verified to be fully compliant with prevailing standards,” the CBN said.

The bank added that the measure is to ensure that internal resources are retained to meet existing and future obligations and support “the orderly restoration of sound prudential positions.”

The CBN also said it will continue to monitor developments and engage with institutions as necessary.

The move comes amid efforts to tighten supervision across the financial system following recent banking sector reforms and recapitalisation directives.

 


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