By Elvis Eromosele

Nigerians love cash. Despite the best efforts of the Central Bank of Nigeria (CBN), the bulk of transactions in Nigeria are still cash-driven. It is not surprising. Cash embodies power, it breeds a sense of security and many swear it has aphrodisiac properties.

It is all too convenient to talk of electronic payment but when push comes to shove – cash is king. Ask any businessman.

Of course, the slow adoption of electronic payment has been blamed on a lot of things. Experts talk of poor awareness of digital and e-payment solutions, lack of trust, widespread illiteracy, and the largely mediocre banking culture.

While talks of financial inclusion have become rampant in recent years, progress has noticeably been slow. When the Nigerian government launched the National Financial Inclusion Strategy in 2012, objective was to reduce the financially excluded to 20 percent by 2020.

Today, the country is still a long way off the set objective. Studies show that only about one in five adults and 38 percent of households’ report having a formal bank account.

According to the World Bank, “Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.”

The understanding is that access to financial products and services may well be the first step towards broader financial inclusion. For most people, to be able to save money and send and receive payment, would mark unprecedented progress.

Technology has proven a real ally in this effort. Today, in the quest to boost financial inclusion technology is being employed in different ways and across a myriad of platforms.

This COVID-19 driven lockdown provided me an opportunity to assess what is working. From a precursory study, agent banking is emerging an unlikely winner.

“Agent banking,” as explained by the CBN, “is the provision of financial services to customers by a third party (agent) on behalf of a licensed deposit taking financial institution and/or mobile money operator (principal).”

In practice, agent banking is essentially a type of branchless banking. It, more than anything else, demonstrates that with the most basic technology, any merchant shop can be transformed into a mini-bank (I do not know if mini-bank is a real word). Today, agent banking is proving an effective way to improve financial inclusion.

It would appear that the lockdown has reinforced the position of agent banking as an important and maybe even indispensable part of the financial service ecosystem.

It is no surprise that agents are becoming the channel of choice for many; they are close, convenient and cost-effective.

The number one proof of the growing acceptance of the agent banking model, particularly during the lockdown is the queue of people waiting to either collect cash or transfer fund.

The biggest beneficiaries appear to be agents with stores that sell provisions and packed drinks. They always have cash to transfer. But when people need large sums, the filling stations are the undisputed champions. I’ve seen people collect as much as N100, 000 at one time from one filling station.

So, in the lockdown, when one would expect e-payment to gain some foothold, cash still reigns. I don’t have the figures, perhaps when all this is over, the CBN would make them available. For now, as far as it is obvious from close observation, the bulk of transactions are still cash-based.

Tomorrow, e-payment may gain ground but today cash is king.

For those who may doubt, here is a simple test:

Consider the number of transactions that you have done during this period, how many of them were cash and how many e-payment? I came up with 95 to 5 in favour of cash.

But it is not all bad. The massive volume of cash transactions shows clearly that digital and e-payment still have a long way to go in this clime. They are not yet ubiquitous or widely accepted. This rather than discourage should help the players in the sector see the gap and opportunities.

So, now the thinking should be how to fill this identified gap, take advantage of the opportunities and possibly harness the potential. Post COVID-19, players in the digital and e-payment space definitely need to up their game.

COVID-19 may not reinvent payment in Nigeria, but it would expose the failings, reveal the gaps and provide actionable insights for the discerning. Yes, it would shape the operations and focus of players in the ecosystem. COVID-19 would have a say on the future of payment in Nigeria and globally.

For now, cash is still king.

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

Dr. Sylvanus Jatto

Amidst the outbreak of the coronavirus (Covid-19) in the country,Stanbic IBTC Holdings PLC, a member of the Standard Bank Group has urged Nigerians to maintain a strong mental attitude, which is a major prerequisite for overcoming the global pandemic.

In a live video podcast on YouTube sponsored by Stanbic IBTC, the “Blue Talk Show”, Dr Sylvanus Jatto, a medical expert with the firm, said the lockdown offers us as a nation, the opportunity to reevaluate and restructure our daily routines, goals, and expectations.

To relieve the psychological and mental concerns associated with the lockdown, he advised Nigerians to deliberately create a routine that enables them to go through what they have been doing before the lockdown and this routine could be spaced, to allow mental and physical relaxation. As a pre-requisite for good mental health, he also advised Nigerians to exercise while staying at home and maintain a positive mindset, because this pandemic is but for a while.

Dr. Jatto further advised Nigerians to maintain a strong connection with their loved ones, even employers should consistently maintain communication with their employees, reassuring them of their commitment to their well-being.

He further advised citizens to limit the amount of information being consumed especially from the social media space, as this information could affect them negatively.

On the economic impact of the Covid-19 pandemic, Dr. Jatto cautioned Nigerians to be financially prudent. “During this period, Nigerians must be financially frugal in their spending, with much emphasis on priority rather than impulsive spending, to build resilience in this tough time,” he said.

On the home-front, he urged parents and guardians to relieve anxiety in the home by avoiding domestic violence and chaos. He tasked parents and custodians to spend quality time with their children and wards, teaching them all they need to know about the pandemic and instilling family values in them.

On measures taken as a corporate organisation to protect the lives of its staff, Dr. Jatto said:

“Stanbic IBTC has a mobile application which connects all staff of the organisation. Once logged in with the necessary details, the application provides regular updates on current happenings within the organisation and information on the coronavirus pandemic. We also have an employee assistance programme which provides employees a “Safe Space” where all staff can talk to a professional therapist without being judged and/or criticized. A toll-free number which offers 24-hour counselling, for staff to reach out to concerning medical assistance or advice.”

Jatto encouraged Nigerians to continue to adhere to the approved safety guidelines, while commending the efforts of health workers who have committed their time, knowledge and lives to ensuring a Covid-19-free-Nigeria.

“Nigerians will never forget their sacrifice,” he said.

Ecobank Nigeria has donated food items to several state governments across the country as contribution to various initiatives aimed at cushioning the effect of the current lockdown on citizens. These palliatives are targeted at the most vulnerable members of the society who have been the hardest hit economically as a result of the current crises.
Speaking in Lagos, Executive Director Commercial Banking, Ecobank Nigeria, Carol Oyedeji said this action would also go a long way in supporting members of the community who earn a daily wage and may not have the opportunity of working under the present environment.

She noted that the donations are part of the bank’s Corporate Social Responsibility (CSR) and focused on providing support as best as possibleShe remarked that “as a bank we give strong priority to people’s welfare. We are determined to assist ordinary Nigerians during the current difficulties and this is one of the ways we are achieving this. We are also offering concessions to our SME Lending customers at this time given the strain on their cashflows and creating ease for the general public to transact digitally while at home”.
Ecobank Group has so far contributed over US$3 million to the fight against COVID-19 across its footprint in Africa in line with the Bank’s commitment to the Region. The Institution is supporting governments, the World Health Organisation (WHO) and partnering with private sector operators to alleviate the effect of the pandemic on citizens.

These have been in the form of cash, healthcare equipment, donation of supplies, awareness campaigns while also using digital platform to provide funds to beneficiaries of various funds being distributed. The Bank is particularly mindful of the needs of its communities and remains committed to providing the appropriate support required.

Remittances to Sub-Saharan Africa registered a small decline of 0.5 percent to $48 billion in 2019. Due to the COVID-19 crisis, remittance flows to the region are expected to decline by 23.1 percent to reach $37 billion in 2020, while a recovery of 4 percent is expected in 2021.

The anticipated decline can be attributed to a combination of factors driven by the coronavirus outbreak in key destinations where African migrants reside including in the EU area, the United States, the Middle East, and China.

These large economies host a large share of Sub-Saharan African migrants and combined, are a source of close to a quarter of total remittances sent to the region. In addition to the pandemic’s impact, many countries in the Eastern Africa region are experiencing a severe outbreak of desert locusts attacking crops and threatening the food supply for people in the region.

Remittance costs: Sending $200 remittances to the region cost 8.9 percent on average in the first quarter of 2020, a modest decrease compared with the average cost of 9.25 percent a year before. The most expensive corridors are observed mainly in the Southern African region, with costs as high as 20 percent. At the other end of the spectrum, the less expensive corridors had average costs of less than 3.6 percent.

Global remittances are projected to decline sharply by about 20 percent in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown. The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country. Remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.

Studies show that remittances alleviate poverty in lower- and middle-income countries, improve nutritional outcomes, are associated with higher spending on education, and reduce child labor in disadvantaged households.

A fall in remittances affect families’ ability to spend on these areas as more of their finances will be directed to solve food shortages and immediate livelihoods needs.

“Remittances are a vital source of income for developing countries. The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” said World Bank Group President David Malpass. “Remittances help families afford food, healthcare, and basic needs. As the World Bank Group implements fast, broad action to support countries, we are working to keep remittance channels open and safeguard the poorest communities’ access to these most basic needs.”

With the growing adoption of digital channels and with more people practicing social distancing due to the Covid-19 virus outbreak, Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holding PLC, has urged Nigerians to remain vigilant for online scams related to Covid-19.

This rapid migration necessitates an understanding and constant review of safe banking habits in the digital age. When banking on digital channels customers should adhere strictly to digital hygiene factors.

Customers are increasingly switching to digital channels to shop, communicate and bank and cybercriminals may take advantage of the current situation to send emails with malicious attachments, or links, to fraudulent websites, to trick victims into revealing sensitive information or donating to fraudulent charities, or causes.

As the banks adapt and improve their anti-fraud technology, fraudsters may employ alternative techniques to deceive people. If they find it harder to hack into banking systems, then their attention may move to an easier target: the customer.

Stanbic IBTC has, on its Social Media platforms, shared tips on how customers can protect themselves online during the Covid-19 pandemic. It is advised that customers exercise caution in handling any email with a Covid-19-related subject line, attachment, or hyperlink, and be wary of social media pleas, texts, or calls related to Covid-19.

Below are some important precautions to protect yourself online:

• Avoid clicking on suspicious links in unsolicited emails and be wary of email attachments.
• Use trusted sources—such as legitimate, government websites—for up-to-date, fact-based information about COVID-19.
• Do not reveal personal or financial information in an email, and do not respond to email solicitations for this information.
• Do not log onto your digital banking on public WiFi.
• Do not share any links online which do not come from official or reputable sources.
• Be wary of spoofed websites that claim to be the legitimate website of an organisation andare set up to mimic the original website.
• We recommend that you download and use the Stanbic IBTC mobile banking app rather than using your phone browser to access Internet Banking.
• Do not share personal information such as your ID number, bank account details or PIN online. Similarly, do not share it with someone on the telephone.
• Do not allow anyone to access your computer remotely. Someone from your bank will never ask you for Remote Access Control to update your information.
• Make 100 percent sure that the email you are reading comes from a real company, person or organisation. If you think someone or something is suspicious, trust your intuition and rather practice caution.
• Remove emotions when working online. Be measured and responsible when it comes to managing your online profile. Contact your bank immediately if you think you have been compromised.

Left: Special Adviser to the Lagos State Governor on Agriculture, Ms Abisola Olusanya; Lagos State Commissioner for Agriculture, Prince Gbolahan Lawal; Head, Agribusiness, Ecobank Nigeria, Moji Oguntoyinbo and Regional Head, Lagos Mainland, Ecobank Nigeria, Christopher Olusola during the presentation of food items by Ecobank Nigeria to the Lagos State Government at Ikeja on Monday

The Lagos State Governor, Babajide Sanwo- Olu has commended Ecobank Nigeria for donating food items to support the state government’s relief efforts to mitigate the effects of the lockdown on citizens due to the coronavirus.

The Lagos State Commissioner for Agriculture, Prince Gbolahan Lawal, who received the items and spoke on behalf of the governor, said Ecobank has always been a good corporate citizen of the state. He assured that the items would be deployed for the purpose they are meant for.

“I want to place on record that as a government, we are pleased with Ecobank, the pan-African bank for identifying with the good people of Lagos State at this moment of need. We will ensure the distribution is transparent and the items get to the indigent people who are vulnerable and therefore most affected by the lockdown. I enjoin Lagosians to continue in their co-operation with the state government’s several initiatives at checking the spread of the global pandemic such as the lockdown and social distancing campaign. There is light at the end of the tunnel”, the Governor stated.

Earlier, Managing Director, Ecobank Nigeria, Patrick Akinwuntan who was represented by Head, Agribusiness, Moji Oguntoyinbo, said the donation is part of the bank’s Corporate Social Responsibility (CSR) initiatives to support those in need within the environment where the bank does business. He disclosed that the Bank is doing similar donation to other states across the country.