Branch banking services create wealth for more Nigerians

High unemployment, economic hardship and the quest for survival are some of the factors now pushing many Nigerians to take advantage of the opportunities created by the Financial Inclusion Initiative led by the Central Bank of Nigeria. The current economic difficulties of many Nigerians have clearly awakened their survival instincts in the face of a certain desperation.

With the sudden reality of unemployment and the need for survival after graduating from college about four years ago, Abuja-based point of sale operator (POS) Adamu Abubakar said it was obvious that he had to think outside the box to survive in an atrocious economic situation, caused by insecurity, poor governance and later the coronavirus pandemic that has ruined the world economy since its onset in 2019.

“After I graduated there was no job for me at the time, so I had to do something to survive,” he said. Abubakar ended up as a sales representative in a kitchen utensil store, a business he ran for two years in Kaduna state.

The realization that his monthly salary of N 25,000 cannot effectively cope with his growing responsibilities forced him to set up a SIM card sales and registration business with meager capital. “But I later thought of a business I could do with it. Then I created the POS business because I could use the same kiosk.

Abubakar raised 100,000 N in start-up capital to start his activity as a banking agent. He applied to one of the commercial banks and then started his business as a banking agent in a slum in the Jabi region, in the Federal Capital Territory, Abuja.

Depending on the flow of transactions or the rate of customers in his 2 by 2 meter kiosk that looks at shallow, smelly drainage, Abubakar said “I make between N3,000 and N5,000 per day.” This means that Abubakar earns an average of N75,000 per month through his agent banking activities.

The CBN, under the circumstances and in collaboration with key stakeholders in the digital financial ecosystem, such as the Nigerian Communications Commission, commercial banks, mobile money operators and telecommunications companies have made several trips to study in other jurisdictions that have made significant progress in driving financial inclusion.

The main objective of the establishment of PSBs is to improve financial inclusion by increasing access to deposit products and payment / remittance services to small businesses, low-income households and businesses. other financially excluded entities through low value, high volume transactions in secure technology. -managed environment.

In view of the challenges posed to effective sensitization of rural communities as well as the

need to complement the services provided by other authorized entities, the CBN

The show approved the licensing and operations of Payment Service Banks (PSBs) in Nigeria, in line with its National Financial Inclusion Strategy (NFIS) which aims to ensure that more than 80% of bankable adults in Nigeria Nigeria have access to financial services.

In addition to wealth creation, more jobs are emerging in the sub-sector. About 200,000 jobs have already been created thanks to the bank agent operation.

Another operator who simply identified herself as Chiamaka said the need to increase income as a hairdresser gave birth to the idea of ​​getting a point of sale machine to participate in “the spinning business. money “because she found out” it’s interesting and profitable, “she told our reporter.

“Sometimes I earn more money than SALOON itself. So I really appreciate it, ”said Chiamaka enthusiastically. She has been with the company for a year. His plan is to make it bigger and make more money.

According to some of the operators who spoke with our reporter, the fees charged by the approved financial institution for each transaction depend on the amount of the transaction carried out at each stage. On each N1000 to N10,000 transacted at the point of sale, a fixed amount is automatically deducted by the host institution.

The goal or wallet machine is given by an agent. In each transaction there is a flat rate of 25% per deposit. 10,000 N equals 25 naira, 20,000 N equals 37 N. He told this newspaper that N80 is charged by banks on every transaction from 20,000 to 80,000 N.

The business is not without risks and dangers. There are various experiences that some operators have been victims of fraud and criminality, including armed robbery. Like Abubakar, another operator, Emmanuel Endurance said some experiences could be frustrating. He quickly points to his experience of a fake transaction alert that was sent to his cell phone number by a suspected fraudster. Endurance, he received a credit notification from the fraudster to authenticate a 10,000 N electronic funds transfer. never entered my account, ”he said.

Some operators have also complained of a pervasive network outage for electronic transactions. In Nigeria, high speed internet connectivity is always at a low rate resulting in interruptions in calls and financial transactions. “It’s very stressful and boring because some customers can be very frustrating,” Emmanuel said.

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