BusinessDay 24 May 2017

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24 BUSINESS DAY C002D5556 Wednesday 24 May 2017 Financial Inclusion & Innovation Weekly Supported ANALYSIS Targeted solutions needed to break financial inclusion gender gap PATRICK ATUANYA A recent World Bank report presents evidence that policy measures to increase financial inclusion need to be countryspecific, based on each country’s gender gap and specific challenges and opportunities. To eliminate the persistent gender gap and expand access to financial services for both women and men, policies should be adapted and integrated in national financial inclusion strategies and other policy initiatives. Alliance for Financial Inclusion (AFI) and Women’s World Banking developed a study to examine the experience of Nigeria, where there are currently many approaches to gender-focused financial inclusion policies. Nigeria is the largest country in Africa, with a population of 177.5 million, which is almost double the population of the second most populous, Ethiopia. With a per capita GDP of $3,203 (significantly higher than Ghana and Kenya), Nigeria is classified as a lower-middle income country, however much lower oil prices continue to pose challenges for public finance at all levels of government. A 2013 household survey revealed the per capita national poverty rate (based on the official poverty line) was 33.1 percent, but a large share of Nigeria’s population live not far above the poverty line. According to Global Findex data, Nigeria has made some progress in increasing the percentage of women who have access to an account in a financial institution. However, the gender gap has increased significantly in the last three years, from 7.3 percent to 20.7 percent (see table). NEWS BALA AUGIE Businesses and banks in Africa’s most populous nation will save money to a tune of N2.60 trillion ($8.53 billion) from digital financial service through reduced theft, error and improved cash management, according to McKinsey Global Institute (MGI). This figure is equivalent to 1.30 percent of the country’s gross domestic product of N150.02 trillion ($495 billion), based on the exchange rate of N305/$. The September 2016 report by the global institute says financial institution will save through reduced account costs, cash in, cash out CICO costs, transaction costs, loan issuance costs, and opportunity costs of currency. Savings in each category With banks perceived as less accessible to women, the expansion of mobile financial services is seen as a particularly valuable opportunity to foster financial inclusion for women. Although Nigeria has challenges— a vast population, geopolitical divisions and social norms that constrict women’s activities—it has seen meaningful policy change under the 2012 National Financial Inclusion Strategy (“the Strategy”). Digital financial services can save Nigeria N2.60 trillion showed the country will save N260.77 billion ($791 million) in reduced shrinkage, N91.50 billion ($300 million) in improved cash management, N238.81 billion ($783 million) in accounts cost reductions, N2.01 trillion ($6.81 billion) in CICO costs reduction. The role of digitalization in saving costs for financial institutions and companies cannot be overemphasized as lenders have lost huge sums of money to fraud. This ranges from bank robberies across the length and breadth of the country. According to a 2015 report by the National Deposit Insurance Corporation (NDIC), banks lost N18 billion to fraud. The corporation said there is an increase in the cases of ATM fraud. An explicit focus on women was undertaken recently with a Special Interventions Working Group of the Technical Committee implementing the National Financial Inclusion Strategy. With numerous changes underway, the coming years are expected to be one of significant policy change, particularly in terms of the regulation of mobile financial services. The World Bank report notes that it From year 200 to 2014 alone, Nigerian banks have lost a total of N199 billion to e-fraud between, mostly due to inappropriate and reckless management of customers’ data. Nigeria and emerging markets use cash for transaction will be important to focus on mobile financial services and outreach to rural women (mutually reinforcing objectives) if more progress is to be made in expanding financial services to Nigerian women. However in Nigeria’s fragmented market, the use of digital financial services has not yet become popular. While there are now 21 fully licensed mobile money operators (MMOs) able to offer mobile financial compared with countries in the Europe, Asia and the United States of America (USA). According to the Central Bank of Nigeria (CBN), digital financial services are estimated to reduce the cost of providing financial services by 80 to 90 services, mobile money usage is still extremely low (0.3% when the Strategy was being prepared and only 0.8% by 2014),and is primarily limited to bank account users who use mobile money as an additional product. Development financial institutions such as the Bank of Agriculture provides opportunities to reach out to women, and the MSME Development Fund, an initiative of the Central Bank of Nigeria (CBN), also has programs aimed at women. The informal sector is an important part of Nigeria’s financial inclusion landscape. According to the National Financial Inclusion Strategy, 17.4 percent of Nigerians (14.8 million people) only use informal financial services, such as esusu (rotating savings and credit groups), village savings groups and savings collectors, with slightly higher percentages of women using these services. The report notes that as they currently stand, none of the financial institution models in Nigeria are a driving force of financial inclusion for women. One explanation for the persistent gender gap is that progress in financial inclusion to date has been with groups who have been traditionally easier to reach—primarily urban men. Efforts to expand financial inclusion now face, in the words of one interviewee, “stubborn demographics,” with overall trends moving in the right direction, but there is now a need to focus on more difficult to reach groups, especially women in rural areas. In addition to the geographical distinction, women represent a large percentage of the young, have less education and lower incomes. The report concludes that this calls for different tactics to close the gender gap. percent compared to the cost of a traditional bank branch. Digital financial service can also help break the barriers to financial inclusion and promote economic growth through the creation of millions of jobs. “Digital financial services can also bring about substantial benefits for financial services providers, and the economy as a whole, beyond financial inclusion. It can boost a country’s GDP significantly and more sustainably,” said Godwin Emefiele, Nigeria’s central bank governor. “It can boost a country’s GDP significantly and more sustainably. For instance, the same McKinsey study postulates that digital financial services can increase Nigeria’s GDP by 12 percent or US$88 billion by the year 2025,” said Emefiele.
Fiat debuts in Nigeria weekend Page 26 Page 26 General Motors to pull out of South Africa BUSINESS DAY Wednesday 24 May 2017 C002D5556 ExecutiveMotoring TNL receives new look Coaster bus …A combination of functionality, safety and comfort MIKE OCHONMA Toyota Nigeria Limited (TNL) has taken delivery of the revamped version of the Coaster commercial passenger bus. This was presented to the motoring journalists at the company’s headquarters in Lekki, Lagos recently. The new Coaster bus retains all the DNA and trapping of its predecessors with improved head and leg room, safety and comfort features. This is coming at a time when the global leader in automotive business is opening another chapter in its history after the launch of the completely redesigned Toyota Coaster at Toyota dealers (Osaka Toyopet dealers in the Osaka region) nationwide across Japan in 2016. It would be recalled that the Toyota Coaster was first launched as the “Light Bus” in 1963, in response to increased demand for a minibus that could approximately seat 25 passengers comfortably. Six years after, the vehicle underwent a partial redesign and was later renamed Coaster; a name which it has continued to use for over the past 50 years. It supports the movement of people around the world. At present, it is for sale in over 110 countries and regions, and total sales have now exceeded 550,000 vehicles. Since its world-wide introduction, Coaster has become a household name not only in Nigeria where Toyota Nigeria Limited is the principal manu- The Federal Road Safety Corps (FRSC) has revealed that its patrol team had apprehended and impounded a vehicle along Badagry Seme Border for seatbelt violation and driver licence violation, only to discover that the said vehicle was conveying a large quantity of Indian Hemp into Nigeria. Bisi Kazeem, Head, Media Relations and Strategy, FRSC, the team of Badagry Unit Command of FRSC on patrol facturers’ representatives, but it is also regularly seen in almost every market and continents across the globe. It is used in a variety of situations including the transportation of passengers and workers as staff buses, and other commuters from one location to another including going and coming back from restaurants, hotels, and tourists including beach goers and kindergartens among other utility functions. The current, third-generation Coaster was launched in 1993. While this model has received praise for its outstanding reliability, there have been growing calls for a new design that incorporates the full safety features package. In addition, since revitalization of the tourism industry in Nigeria is expected operations along the route intercepted the vehicle with vehicle number, EPE 237 XC in the morning hours and had to lead to increased demand for minibuses, Toyota Motor Corporation (TMC) is aiming to develop a vehicle that will be cherished and ridden for many years to come. This complete redesign marks a significant evolution from the current model, and features a full range of safety functions, improved comfort, outstanding reliability, and a design appropriate for a new generation of minibuses. The Coaster is the first vehicle to undergo a complete redesign under the supervision of the (Commercial Vehicle) CV Company, which was established last year April to carry out the development of commercial vehicles from the planning to production stages. The CV Company is an inhouse company that oversees the development of vehicles already established the two offences before making the discovery with the collaborative effort of the Nigerian Customs that continue to support the lifestyles of people from various regions around the world. Company sources states that going forward, the company will continue to engage in the creation of ever-better commercial vehicles. Flaunting outstanding body rigidity and full range of safety equipment, the bus utilizes a ringed body frame which unifies the roof, sides, and floor frame sections. The use of high-tensile steel plates further contributes to a rigid body that complies with the ECE2 Regulation 663 (Rollover) global safety-performance standard. The vehicle also provides passenger safety and a peace of mind for our customers in the event of an emergency through the use of pre-tensioners, which instantly takes up seatbelt slack and secure who were equally on the same route with their patrol team. The vehicle is presently with the Comptroller Custom Seme for further investigations before it would be handed over to the appropriate drug law authority for contravening the law against drug peddling. Bisi Kazeem stated that it is in view of this great mark of achievement which is targeted at keeping the society sane as a security outfit that the FRSC passengers, as well as the use of force limiters, which reduces the force applied to passengers’ chest regions. The cabin space has been heightened by 60 mm, and the windows have been moved outwards by approximately 40 mm, thus providing enough space for passengers to rest their elbows. In addition, the side windows have increased in height by 50 mm, which creates a comfortable and open passenger space. Apart from its quiet interior, a stable and comfortable ride, it has improved body rigidity due to the ringed body frame, adjustments to engine cover structures, enhanced body-seal structures. The optimal distribution of soundproofing materials all contribute to improved cabin quietness. FRSC discovers large Indian hemp in contravened vehicle Corps Marshal, Boboye Oyeyemi, continues to call for a stronger collaboration with sister agencies. Recall that not long ago, the Corps had intercepted a vehicle convening children (minors) through Kaduna with some suspected child traffickers who were consequently handed over to the relevant authorities. And in the same Kaduna, the FRSC rescue team had equally recovered five locally Mombasa-Nairobi rail SGR set for commissioning Page 27 25 Volvo to assemble trucks in Kenya Swedish truck maker, AB Volvo, is to start assembling vehicles in Kenya, the company said. Claes Nilsson, President of Volvo Trucks, said in a statement that the move was part of series of investments aimed at boosting the company’s presence in the region. Nilsson said Volvo would also open an office in Kenya to serve East Africa, open 20 workshops around the region and a parts warehouse. He said it was partnering with local firm NECST in the plan which will create about 300 direct jobs. “There is a significant potential for the premium truck business as regional economies grow, infrastructure investments expand and the business environment remains investment friendly,” Nilsson said. The East African nation undermined what was a thriving local assembly industry in the 1990s with policies that encouraged cheap second hand imports. It is now seeking to attract manufacturers back to help create jobs and support growth. Volvo is only the latest vehicle maker to announce plans in recent months to start assembling locally, following moves by Volkswagen, PSA Peugeot and CNH Industrial’s Iveco. made AK 47 rifles from a man whose vehicle was involved in a crash. Against this backdrop, Kazeem stated that the Corps Marshal is pleased to see that the officers and men of the Corps have so far been demonstrating the willingness to make the rules of engagement with sister agencies viable and more diligent in their duties combined with maintenance of security and safety as it relates to the motoring public.
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BusinessDay 24 May 2017

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