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What went Wrong with Stanbic IBTC Esusu Services?
On April 22, it was reported by one of Nigerian dailies, The Punch newspaper that some customers of STANBIC IBTC were allegedly defrauded as active customers of the Bank enrolled for the esusu service which entails savings contributions through roaming agents that are acting on the behalf of the Bank.
The product esusu enables any low income person, traders and others like students to save money and enjoy basic financial services which with the use of a Bank card and a point of sale terminal provided by the Banking agents.
Banking through agents using same channel had recorded significant successes in other climes like Brazil and even some African nations till date.
Stanbic IBTC’s esusu is quite useful in a nation like Nigeria where millions of adult in urban and rural areas do not have access to basic financial services due to challenges of Bank Branch spread, lack of standard Know-Your-customer documentations and many others challenges that low income segments population are faced with when attempting to access basic financial services.
The esusu service was an innovative conception that was quite popular in some parts of Lagos when I conducted an independent assessment of the service to enable me learn more about how mobile financial services agency network can operate in same like manner in Nigeria.
Overall outcomes of the assessment proved beyond reasonable doubt that the Bank’s Brand and trust in the Bank played a key role in convincing the customers to sign up with the roaming agents and use the services with average customer using the services more than twice weekly in the minimum.
In essence, the Bank transferred the trust to the agents and the users trusted the agents as a representative of the Bank.
It could have been difficult for a non bank provider to achieve what was achieved with the esusu product.
The complaints reported by the customers as reported by Punch Newspaper ranged from interest not earned on the savings as promised by the agents and saved balances shortages.
What could have gone wrong with such novel concept that promises to bring financial access to the door steps of millions of Nigerians? An innovation that I secretly understudied and always refer to as ground breaking in Nigeria?
From my experiences of how Banking agency operates for mobile financial services , which is significantly different from what the Bank is offering is the use of roaming agents rather than fixed locations agents.
Roaming agents are more effective in signing users and building trusts in the early days of deployment.
However, providers should endeavor to transit roaming agents to fixed locations in those communities once they had achieved the mandate of signing up minimum users per community and had gained trust of users.
The advantage of fixed location agents is that tariff / service pricing can be placed on a wall in the booth, store or agent locations for customers to verify how much they are expected to pay for the services.
My assumption in the situation above was that the agents were eager to sign up customers and did not clearly educate customers on chargers for the services or interest payable on the savings.
The terms and condition of use of services might had been wrongly communicated or not at all by the roaming agents.
Terms and conditions of services is important to build confidence and manage expectations of the users.
However, most organization get it wrong when they make such prints almost unreadable by using the smallest printable character, not translating such for the benefit of the customer when He / She is not literate to read the print version.
Agents are also not able to educate the customers adequately before they commit to signing up for the service.
Banking services is strongly evidenced based service and it is rather awkward for customers to wait till the following day to get receipt for deposit made a day earlier with the agent as reported by one of the aggrieved customers.
If the service is designed that way, that is entirely wrong.
Depositors should be able to have instant fulfillment upon committing the transaction with agent and a paper based receipted issued in writing or printed out to keep as evidence or for future reconciliation purposes.
It could also be an ingenious method for the agents to short change the depositor by way of manipulating the receipt, given the time lag of 24hours for the receipting.
I know as a matter of fact that the Bank is stable and will be able to meet the demands of the savers on demand and the police was also reported by the Punch newspaper to have stepped into the issue and resolve some by arresting the guarantors of the agents.
However, it is a reputational issue for the Bank and may portend systemic risk for the entire industry that is actively developing agency Banking through the use of agents via recently licensed mobile money providers in Nigeria.
Getting the agents is only the baking of the cake, monitoring the agents is the icing on the cake and that is where most providers will drop the ball.
The lessons to be learnt is that providers should not transfer their trust to agents where control is lax and the only compensatory control over agents is the guarantor whom may not fully understand what they are guaranteeing or compensate the provider adequately when things wrong.
Emmanuel Okoegwale
Principal Associate, MobileMoneyAfrica
[email protected]
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Nedjip Tozun, CEO d.light Named in 2024 TIME100 Climate List for Transformative Impact on Clean Energy Access
Nedjip Tozun, Co-founder and CEO at d.light, has been named one of the world’s most influential leaders driving business to real climate action in the 2024 TIME100 Climate list.
TIME’s annual climate list recognizes the world’s most innovative and impactful business leaders championing climate action and working toward a sustainable future. This honor celebrates Tozun’s visionary leadership and commitment to transforming energy access for underserved communities across Africa and Asia.
Since co-founding d.light in 2007 at Stanford University, Tozun has led the company’s mission to empower lives through sustainable, affordable, off-grid clean energy solutions. Under his leadership, d.light has reached over 180 million people, providing transformative products such as solar home systems, lanterns, and appliances, and connecting households and businesses to life-enhancing solar energy.
With a growing footprint across some of the world’s most energy-challenged regions, d.light’s innovative pay-as-you-go platform, Atlas, enables over 6 million transactions monthly, making clean energy accessible and affordable for millions.
“We are honored to see Nedjip’s dedication recognized by TIME as part of this esteemed Climate list,” said Wayne Keast, d.light board member and Managing Partner of Inspired Evolution. “His passion for bringing clean energy to the most remote communities is reshaping the future of energy, health, and opportunity in regions where the climate crisis hits hardest.”
As a pioneer in clean, off-grid energy solutions, Tozun has not only driven unprecedented growth for d.light but has also challenged and changed the industry landscape.
His work has made d.light a trusted partner in the global climate effort, positioning the company as a model for sustainable development and scalable solutions in emerging markets.
With a goal of impacting 1 billion people by 2030, d.light continues to scale operations and forge partnerships to meet growing demand while addressing critical climate issues head-on.
“I’m truly grateful to be recognized by TIME for our work in advancing clean energy access”, said Tozun. “This acknowledgment underscores the urgent need to prioritize equitable access to clean energy as we tackle climate change.
d.light’s work is rooted in the belief that everyone deserves access to energy, and I am proud of what we have achieved together with our team, partners, and the communities we serve.”
Tozun’s inclusion in the TIME100 Climate list highlights the impact of d.light’s work across Africa and elsewhere. It follows d.light’s recent recognition as a finalist in the 2024 Earthshot Prize, the international environmental award founded by the UK’s Prince William that recognises groundbreaking sustainable solutions for repairing and regenerating the planet.
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Cloud Energy Solar Shines Bright with 200 Watts Street Lighting Bulb
Nigeria’s foremost indigenous Renewable Energy Company, decorated by industry partners as the most Outstanding Energy Provider, Cloud Energy Solar, living true to its appellations, is focusing its renewable energy competencies beyond the home and office.
Cloud Energy has increased its impact in street lighting with the design and production of the 200 Watts street lighting bulb.
The 200 Watts bulb consolidates the reputation of brightness and long lasting for the Cloud Energy range of energy saving bulbs, in the homes and offices.
Spurred by the abundance of the sun, the Cloud Energy Solar Company seems challenged to never let the sun set. The Managing Director of Cloud Energy, Mr. Theophilus Nweke, launching the 200 Watts bulb observed that the times are dangerous in terms of security.
Therefore, the brilliance of the street lighting will eliminate all lurking shadows from the streets and security posts. It is an answer to a call to duty for all patriots to deploy their competencies to enhance national security.
The renewable energy boss said that citizens must be prepared to make sacrifice to give Nigeria its deserved place as the giant of Africa. These sacrifices can come from the kind of opportunities that OEMs give to Nigerians. For example, Cloud Energy, a leading solar practitioner is currently offering rooftop solar panels with a flexible payment plan up to two years or more.
Property owners can now design their buildings with solar panels on the roof and keep paying long after they have completed and moved into the houses.
This flexible payment consideration, the Cloud Energy Boss explains, extends to the entire range of Cloud Energy Solar products – Energy storage products, Inverters, Batteries; Lifestyle products, Fridges, Freezers, Fans Television sets, and solar accessories.
These offers are conveyed in a campaign entitled Bridge the Energy Gap, a clear departure from the traditional way of presenting offers in the market.
The bridge has been used as a symbol to convey a sense of professional support, assistance, and partnership.
The bridge beyond meaning a make-up for a shortfall also provides a thorough fare to the energy transition, without bottlenecks. It deletes all doubts and gives a sense of certainty for a transition.to Solar.
The bridge is the fact that Cloud Energy in partnership with its finance partners offers different kinds of payment plan to ensure a done deal, in electricity, without tears.
Cloud Energy, founded in 2015 has earned respect by installing Solar and Inverter systems for discerning clients, mainly academic, research institutions and multi-nationals across the nation.
In less than a decade Cloud Energy has foot prints in the Banking and Finance sector with ATM installations; Homes and Public buildings with Solar Systems; and is a viable partner to governments through the Rural Electrification Project.
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Airtel HR Director, Adebimpe Ayo-Elias Honoured as HR Leader of the Year
The Director of Human Resources and Administration at Airtel Nigeria, Adebimpe Ayo-Elias, has been awarded as HR Leader of the Year at the 2024 HR People Magazine Awards, organized by Mapelwood Global Resource.
The award ceremony, held recently at the Lagos Oriental Hotel, celebrated the achievements of outstanding HR professionals across Nigeria who have contributed significantly to organizational success and workplace culture.
Speaking on the recognition, Carl Cruz, CEO of Airtel Nigeria, expressed immense pride in Ayo-Elias’s achievement, describing it as a milestone not only for her but also for the company.
“Adebimpe’s impact, dedication, and leadership extend well beyond Airtel, and this award is a well-deserved recognition of her influence in the HR field. We are incredibly proud of her accomplishments and look forward to her continued contributions to the industry,” he said.
Receiving the award, Adebimpe expressed gratitude for the honour, reiterating her commitment to advancing world-class HR practices within her organisation.
“I am deeply grateful for the opportunity to contribute positively to the lives of those we serve within and beyond the organization. Airtel Nigeria creates an environment that nurtures growth, encourages innovation, and prioritizes the well-being of every employee and as such, this award motivates me to continue championing these values,” she said.
This award reaffirms Airtel Nigeria’s commitment to developing and empowering talent, further establishing the company as a leading force in creating an impactful, forward-thinking workplace.
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