Finance
ALMPO Mobile Money Confab 2019 identifies how to deepen financial inclusion in Nigeria
The burden of delivering financial inclusion to the last mile has become one that needs the strategic participation of all industry stakeholders in the ecosystem, so as to deliver value propositions that will deepen financial services culture for the benefit of the citizenry.
These were the views of participants at the 2019 Mobile Money Conference, organized by Association of Licensed Mobile Payment Operators (ALMPO).
The event themed: ‘Beyond Payments’ was held on Wednesday, 27th November, 2019 at Four Points by Sheraton, Victoria Island, Lagos.
Chinedu Onuoha, chairman, Association of Licensed Mobile Payment Operators (ALMPO), noted that the aims of financial inclusion should not be limited to payments alone, that is, paying and receiving of money.
He stated that financial services should be made to cover areas that are germane for the average citizen if we are to achieve the objectives of financial inclusion.
He explained that financial services should be all encompassing and focused on rendering everyday services that go beyond payments services.
According to him, “The theme of this year’s conference aptly captures the general direction of the industry. We are of the opinion, and rightfully so, that for the objectives of financial inclusion to be realized, we must go beyond payments, as we try to attract more people into formal financial services.
“We are aware that the financial needs of the average citizen are much more than pay and receive. People want to save and earn interest.
“They want to participate in pensions, they need some form of insurance, and many more. We also know that for all of this to realized, there must be adequate security and trust in the system.”
Onuoha called for collaboration of security agencies and other government agencies, which according to him, would create the right synergy that will secure the payment system and provide adequate protection to operators as they go about their business.
Aishah Ahmad, deputy governor, Financial Systems Stability, Central Bank of Nigeria (CBN), stated that Mobile Money (MM) is vital to CBN as a regulator and as such, they are open to suggestions on the way forward, without holding on to rigid regulations.
Ahmad who was represented by Aisha Isa-Olatinwo, assistant director, Payments System Management Department, CBN, noted that since estimated reports show that Nigeria has over 100 million unique mobile numbers, if mobile money operations work, there will be over 100 million subscribers.
She enjoined everybody present at the conference to work together to create a success story that will be beneficial to the ecosystem and the entire citizenry.
Uzo Eziukwu, group CEO, BlueTag Group, in a keynote address said that Mobile Money is fast becoming Africa’s legacy to the world, using Kenya’s MPESA as a typical example, doing about 1.7 billion transactions per year and making up to 50% of Kenya’s GDP.
He revealed that there are over 120 Mobile Money Operators (MMOs) in Sub-Saharan Africa (SSA), and they came into Nigeria in 2010 with a focus to drive financial inclusion and as an adjunct to mainstream banking.
He dissected the journey of MM in Nigeria into four stages, according to him, the first stage was the pilot stage between the years 2010 and 2012, which served as linkage of MM into mainstream banking.
According to the Eziukwu, “this was a time to understand the regulatory environment and regulators. This period saw confusion between collaboration and competition.
“This stage saw operators understanding the peculiarities and challenges of the Nigerian landscape. The need to collaborate and align effectively with telcos was also noticed.This stage had the challenges of integration and knowledge sharing”.
The second stage, according to him began from 2013 to 2015, which saw constructive engagement and alliance, as bank and non-bank MMOs engaged with one another and CBN. Also, partnerships arose between MMOs and banks, as CBN further streamlined MM policies.
“These moves saw growth in MM adoptions and in the number of bank accounts, noting also that this stage saw significant growth in MM acceptance driven majorly by the already banked.
He further revealed that innovation in mobile money operation has to be wrapped around consumer needs and not just payments, needs like micro-credits and service-based lending.
He also suggested products to be created for those at the bottom of the pyramid, products like health insurance, micro-pension, interest-based micro-savings, and rotational savings.
Acknowledging that the theme of the conference was apt, he concluded by sharing that as MM is moved forward, the sound benefits of financial inclusion will be unraveled.
Professor Olayinka David-West, academic director, Lagos Business School, delivering a paper Titled ‘Harnessing New Opportunity Areas for Mobile Money Adoption in Nigeria’, decried that only 4% increase in digital payments was recorded since 2016.
She further revealed that out of the estimated 99.8 million adults in Nigeria, only 3.3 million are MM users, and of the 36.8% excluded, most are women.
She reminded that engaging the bottom of the pyramid does more than gaining financial inclusion, but it also enhances the social and economic development of the society.
She also shared that a compelling value proposition is needed to get the attention of the customers. She argued that if the products and services don’t fill the proposition, MM won’t get to the Promised Land.
She also talked about taxes and levies, cybersecurity and fraud, connectivity and power, sharing how the setbacks and challenges in the sectors affect the adoption of MM by the masses.
Mrs Bunmi Ogunlewe, head of Product, e-tranzact, who spoke about shared services platforms as enablers for Mobile Money Growth, said that with the various needs faced by people at the bottom of the pyramid, collaboration is needed to address them.
She advised that the MMOs should come together and build an informed credit system which will help in the journey of MM through the last mile.
She shared that while each MMO collates data, until collaboration is done the data will be useless whereas with collaboration, fresh, enormous, insight will be gotten.
She opined that shared services and shared infrastructure will help get an additional 50 million customers and without shared platform services, the adoption and growth hoped for by MMOs won’t be attained.
The conference had different panel sessions that proffered solutions on how we can reach the last mile and as well set a new agenda for the next decade which will see the implementation of the solutions achieved in driving financial inclusion in Nigeria and indeed Africa.
Finance
Flutterwave Powers Local Businesses in Ghana Through Pay With Bank Transfer
Reporter: Ikenna Ugwu
Flutterwave, a leading payments technology company in Africa, has broadened its reach in Ghana through the integration of Pay With Bank Transfer, done in partnership with Affinity Bank.
With over 115 million bank transfer payments recorded in Ghana in 2023, this move will ensure that Flutterwave businesses in Ghana can now receive payments seamlessly and securely through a rapidly growing payment method. While Mobile Money leads as the preferred payment type for everyday transactions in Ghana, the recent growth in transactions for Pay With Bank Transfer symbolizes the expanding payment options available for Ghanaian businesses.
Flutterwave has a track record of driving innovation in the African finance ecosystem, and this new development promises versatility, thereby expanding the pool of customers available to businesses. As a preferred payment method, it also promises faster payments while providing access to a more secure process of transacting which benefits both the sender and the receiver (business).
“We are excited to extend our services to the Ghanaian market” says Olugbenga Agboola, Flutterwave Founder & CEO“At Flutterwave, we are driven by the vision of building Africa’s economy. By making payment options like Pay With Bank Transfer available for everyday use, we are expanding access to payments and enabling local businesses to thrive in the economy”
By establishing this strategic partnership, Flutterwave aims to drive the adoption of the Pay With Bank Transfer option in Ghana, using virtual accounts to allow for secure and transparent payments. This will provide enterprises and small businesses with a simpler way to receive payments and give their customers a seamless process of making payments.
Geoffrey Fiador, Manager, Country Operations and Partnerships, at Flutterwave stated: “By delivering essential payment options like Pay With Bank Transfer for businesses in Ghana, we’re providing an easy way for them to increase their revenue opportunities to grow their businesses. ”
This announcement comes at the heels of Flutterwave’s recent approval by the Bank of Ghana to provide inward remittance services. With a track record of success across Africa, Flutterwave continues to be a trusted partner for businesses in over 34 countries, providing the tools and expertise necessary for success in the dynamic African market.
Finance
Stanbic IBTC Capital leads Presco PLC’s ₦82.9 Billion Bond Issuance to drive West African market growth
Reporter: SANDRA ANI
Presco PLC (Presco or the “Company”), has achieved a significant milestone with the successful issuance of its ₦82,896,000,000 7-year 23.75% senior unsecured fixed rate Series I Bonds under its ₦150 billion bond issuance programme (the “Transaction”) with the Securities and Exchange Commission (“SEC”). Stanbic IBTC Capital Limited (“Stanbic IBTC Capital”) acted as the Lead Issuing House on the Programme.
The proceeds from the Transaction will enable the Company fund its acquisition of a 100% equity stake in Ghana Oil Palm Development Company (GOPDC), further supporting its strategic expansion objectives.
Speaking on the transaction registration, Mr Reji George, Managing Director / CEO, Presco PLC commented:
“The successful completion of our Series 1 Bond issuance solidifies Presco’s foundation for continued growth and expansion. Aligned with our strategic objectives of increasing our planted area of palm oil and, to lead Africa in the fully integrated edible oil and fats business in the nearest future, the proceeds from this issuance will be primarily directed towards the acquisition of a majority equity stake in the Ghana Oil Palm Development Company (GOPDC).
This not only enhances our operational efficiencies, It also solidifies our market presence and competitive advantage in the palm oil sector beyond Nigeria. Most importantly, this will enable us to better serve our valued customers and deliver sustainable value to our shareholders. We extend our sincere gratitude to Stanbic IBTC Capital and all our advisors for their support throughout this process.”
Also speaking on the transaction registration, Oladele Sotubo, Chief Executive, Stanbic IBTC Capital, said:
“Stanbic IBTC Capital is proud to have advised Presco PLC on the successful issuance of its ₦82.9 billion Series 1 bond. As the largest local currency corporate bond issuance in the Nigerian market in recent years, this milestone underscores our deep expertise in capital markets and our commitment to delivering innovative, high-impact financial solutions.
Beyond reinforcing Presco’s strategic growth, this transaction enhances funding diversification within the agricultural sector, driving sustainable industry expansion. We appreciate Presco PLC’s trust in Stanbic IBTC Capital and the consortium of advisors who contributed to the successful execution of this landmark deal.
Flutterwave, Africa’s leading payments technology company, has announced today that its online merchants in Nigeria can now accept American Express payments.
American Express Card Members – with consumer, business, or corporate cards – will be able to make payments directly to e-commerce businesses using Flutterwave in Nigeria.
This service will also be available to Flutterwave merchants in other countries including Tanzania, Rwanda, Ghana and Uganda in the near future.
This collaboration facilitates online transactions and offers a range of benefits for both merchants and online shoppers:
- Flutterwave merchants can attract business from a new customer base of American Express Card Members in Africa and around the world. This includes consumers with personal cards and spenders with business or corporate products. Terms and conditions apply.
- For shoppers, there is more choice when it comes to being able to select their preferred method of payment when transacting with Flutterwave merchants. This collaboration strengthens the American Express global network and increases the number of locations across Africa that can be used by American Express Card Members to purchase a range of different goods and services.
Speaking on the development, Olugbenga ‘GB’ Agboola, Founder and CEO, Flutterwave, said:“At Flutterwave, we’re always looking for ways to connect the world to Africa through payments. This is one of our initiatives to ensure that more people across the world can pay using Flutterwave in Africa. We understand the value of providing shoppers with payment methods that work for them, as well as helping businesses to expand their customer bases. This collaboration also provides more options of where to shop and what to buy to American Express card holders across the globe. By offering American Express as a method of payment, Flutterwave will make the payment process faster and simpler for American Express card holders, and improve the experience for e-commerce businesses using Flutterwave, helping them to start locally and sell globally.”
On his part, Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, said: “American Express continues to expand in Africa to enable greater payment choice for businesses and consumers. Through the agreement with Flutterwave, a trusted payment provider, we are giving e-commerce merchants in Nigeria the opportunity to reach American Express Card Members around the world. The collaboration is a win-win because it also increases the number of places where our Card Members can use their Cards in Nigeria.”
Flutterwave and American Express share similar visions; to enable businesses across the world to expand their operations in Africa and other emerging markets through a platform that enables local and cross-border transactions via one Application Programming Interface (API).
Flutterwave has processed over 630M transactions in excess of USD $31B, serves global and African customers like Uber, Air Peace, Bamboo, PiggyVest, and across various industries. On the other hand, American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
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