Nigeria FinTech Landscape - Impact Assessment

Despite the progress made in the Nigerian FinTech ecosystem, there are still gaps that stakeholders need to make concerted efforts to address (4/9) 3 Regulator- Infrastructure Progress Mobile phone penetration of 87% of the population i.e. 170 million mobile subscribers leading to democratization of access BVN policy created a digital identity that enabled FinTech properly identify users and signup users remotely - NIP by NIBSS enables online real time payments significant reach as NIP accounts for 70% of ~ 120 million monthly transactions processed by NIBSS Flutterwave, a B2B FinTech was the first company to offer instant settlement to merchants once NIBSS allowed for this Current gaps & Lack of widely used Digital ID While there are many different identity systems, there is under penetration of a reliable digital ID e.g. only 40 million accounts are currently linked with BVN (most reliable ID system) There are many different identity systems with various data collection standards making reliability an issue Broadband coverage " Limited data affordability. E.g. Data prices of some providers have remained the same for about 3 years Cost to serve of Network providers is high due to cost of laying Fibre cables etc. Suboptimal coverage and where there is coverage, quality is often poor Inadequate Credit Data Infrastructure Lack of central credit data repository Lack of national asset register to enable asset finance ■ NIBSS Global Standing Instruction (GSI) still in progress Opportunities Creation of reliable widely used Digital ID ■ NIMC to incentivise those in underserved areas to get digital IDs by providing rewards for enrolment or making it a condition for certain services e.g. registering a mobile sim Adopt common standards of capturing data across all identity systems e.g. BVN, NIN etc. to ensure reliability in using any of the IDs Fasttrack broadband coverage & quality ■ ■ Allow for shared fibre infrastructure between Telcos and network providers Explore concessions of specific geographies to different providers Provide incentives for Telcos to expand to rural areas Reduce cost to serve in undeserved areas for Telcos Standardization of credit infrastructure through: ◉ Creation of central credit data repository by CBN. E.g. central credit register by the Bank of Ireland Creation of national asset register Implementation of proposed GSI ■ SOURCE: Expert Interviews, Press Search EFINA 169

View entire presentation