On Thursday, the National Agency for Science and Engineering Infrastructure (NASENI) entered into partnership with the Israeli, Japanese and Nigerian companies to develop electric vehicles.

The partnership came as part of the memorandum of Understanding (MoU) the Federal Government of Nigeria signed with Israeli and Japanese companies to commence assembling and manufacturing of environmentally friendly vehicles by 2023.

The event, which took place in Abuja, marks the boldest step the Nigerian government has taken to create a path for the building of smart and green energy-based automobiles.

Isreali Ambassador to Nigeria, Michael Freeman, said that the partnership, which combines Israeli, Japanese and Nigerian technologies, would help address the many challenges affecting the transport and environmental sectors in Nigeria. He added that the partnership would provide cheap and safe transport system to Nigeria and eventually, the rest of Africa.

“It is a project that is a partnership with Israeli, Japanese and Nigerian companies taking place in Nigeria. What is special about this project is that it is a timely project that combines Israeli technologies, Japanese technologies, Nigerian entrepreneurship and innovation together to create a project that is going to work fabulously.

“We are talking about bringing electronic Motorcycles into Nigeria which will be a programme that is green, environmentally friendly.

“It offers people a cheap way and safe way of transport and even has a technology to ensure that the motorcycles are only used for legal and appropriate purposes.

“When we look at what the problems are in the world and in also in Africa and in Nigeria, we are talking about issues of fuel scarcity, we are talking about green technology, we are talking about the need to provide cleaner, cheaper, easier transport.

“And here we are, having Israeli and Japanese companies coming together with Nigerian partners to provide cleaner, greener, newer, exciting technology that is expected to move people, population across the country.

“I believe that a programme that is going to start in Nigeria will be successful and will go across Africa,” Freeman said.

The partnership was unveiled at the same time Nigeria’s Energy Transition Plan, which has been lauded as investors’ choice, was launched. Michael Bloomberg, the billionaire founder of Bloomberg, said the Plan sends the right signals to investors and hopefully, it will inspire more countries to join the fight against climate change ahead of COP 2027.

The Nigeria Energy Transition Plan is designed to help the country to achieve net-zero emissions by 2060. Part of its objectives is to achieve carbon neutrality, end poverty through economic growth, and bring modern energy services to the entire population. The Plan also seeks to mobilize new partners by showcasing existing support for data-driven energy transition planning from international partners, including Sustainable Energy for All, The World Bank, The Rockefeller Foundation, and the Global Energy Alliance for People and Planet.

While both the MoU between Nigeria, Israel and Japan and the Nigeria Energy Transition Plan have been lauded as key steps in achieving the net-zero goal, concern remains over the dilapidated state of the needed infrastructure in the country. For instance, Nigeria is still grappling with epileptic electricity supply. Stable electricity supply is a prerequisite for successful transition to environmentally friendly automobiles.

The partnership is billed to go into effect by 2023, which is not farfetched, while Nigeria is not yet close to achieving the 40,000 megawatts needed to enable uninterrupted power supply in the country. With its current 5,000MW of electricity supply, Nigeria’s hope of achieving net-zero emission goal by 2060 is very much in doubt.

Good People, why are ALL Nigerian politicians meeting these days outside Nigeria? From APC to PDP to LP to all, every weekend, all the important rumours now emanate from London. In other words, these men coordinate in Abuja to travel to London and have meetings. Fellow citizens, these meetings diminish Nigeria. Yes, they could be discussing extremely important national issues in hotel rooms bugged by spy networks.

Statistically, Nigeria has 3 key men with one to become a president next year, and three of them were meeting in London hotels this week. Do not bet that London has not created a database for them, chronicling their playbooks ahead of 2023.

Nigeria does not value “information” and ”knowledge” in an age where both drive competitiveness of nations.

Comment on Feed:

Comment 1: They swept the room for bugs before saying the opening prayer….lol.
But seriously, do we take espionage seriously? Wasn’t there some talk about data from the gifted AU building been transmitted to some location in Asia? It didn’t seem to bother anyone, so why should politicians care about “walls that hear”?

Comment 2: The trend is really worrisome.

I’m just wondering when politicians from the UK, US or other countries will come to Nigeria for their private meetings.

More annoying for me is the fact that in 2022, discussions about Africa development are still consistently being held outside the continent. We certainly need collaborations and strategic partnerships but not handouts. We have to look inward for homegrown solutions to our problems.

Comment 3: I would say they are not technologically conscious neither are their team members or advisors tech savvy enough to know the risks involved in holding important meetings in unsecured locations. If anyone successfully eavesdrop on that meeting, he is a rich man because he can sell that information to opposition.

The introduction of the Central Bank of Nigeria Guidelines For The Regulation of Agent Banking & Agent Banking Relationships in Nigeria was designed as a very effective method of position disruption in Nigeria’s Banking & Finance sector aimed at :-

– the provision of minimum standards and operation requirements for agency banking operations as a simplistic but effective tool of extending the reach of banking services in Nigeria;

– the enhancement of Financial inclusion in Nigeria;

– the proper provision of agency banking as a cost-effective banking platform.

Agency Banking as a concept has successfully led to very high levels of financial inclusion & financial literacy as well as an overwhelming level of convenient banking services leveraging on the nature of communal living in Nigeria and Financial technology, giving rise to another type of value stakeholder in the Finance Industry – the Super-Agent, a rather new Fintech offering that will be the focus of this article which will be looking at:-

– The definition of Agency Banking as a concept & the categories of Banking agents in Nigeria.

– The Regulatory Framework governing Agency Banking in Nigeria.

– The licensing requirements for Super Agents in Nigeria.

– The permissible and non-permissible activities for Super-Agents in Nigeria.

– A basic idea of the operational guidelines for Super Agents in Nigeria.

What is Agent Banking?

Agency Banking involves the provision mainly via Financial Technology of banking services to customers on behalf of a licensed deposit taking Financial Institution or Mobile Money Operator(known as “The Principal”) by a 3rd party known as “The Agent”.

What is the Regulatory Framework governing Agency Banking in Nigeria?

Agent Banking is regulated mainly by the Central Bank of Nigeria (CBN) through Banks and Other Financial Institutions Act (BOFIA) and The Guidelines For The Regulation of Agent Banking & Agent Banking Relationships in Nigeria (or ‘The Guidelines’).

What are the categories of Banking Agents allowed under the Guidelines?

The categories of Banking agents allowed under the Guidelines are :-

1. The Super Agent :- This is an agent contracted by an MMO or Financial Institution (Principal) who may subcontract other agents in a network over a wide geographical area and retaining overall responsibility for the operation of the agency relationship.

2. The Sub– Agent :- A person to whom some or all aspects of the agent banking service delivery have been delegated by a Super-Agent.

3. The Sole Agent :- An agent who does not delegate agency operation powers to other agents but assumes agency by himself.

Who is in charge of licensing Super Agents?

Super Agent licensing falls under the jurisdiction of the Central Bank of Nigeria through the Regulatory Framework for licensing Super Agents in Nigeria even though it is set in motion by an Agency agreement with either a Financial Institution or Mobile Money Operator.

What are the requirements for  Super Agent licensing in Nigeria?

The requirements for a Super Agent license in Nigeria are :-

– Being a registered company with a minimum shareholders fund of 50 Million Naira unimpaired by losses.

– Sending an application as a registered company through your lawyer for a Super Agent license to the Central Bank of Nigeria through the Director, Banking & Payments System Department.

– Evidence that the company has been a company with an existing business operational for at least 12 months before the application.

– A Certificate of Incorporation of the applicant company along with its Memorandum & Articles of Association.

– A documented referral from a Financial Institution/Mobile Money Operator.

– Proof of having at least 50 agents.

– A copy of the company’s board resolution approving its Super Agent application.

– The company’s profile and functional contact emails, telephone numbers, office and postal addresses.

– A documented shareholding structure of the company.

– A Feasibility report.

– An organogram of the company.

– The IT policy of the company. 

– An Enterprise Risk Management Framework.

– A Contingency & Disaster Recovery Plan.

– A documented outline or the company’s shared agent network including current and potential engagements, geographical spread and benefits to be derived.

– Qualifying criteria for engaging agents.

– Draft SLAs (Service Level Agreements) with sub-agents and Financial Institution/Mobile Money Operator Agent Banking contract.

– An Anti-Money Laundering/Combating the Financing of Terrorism/Know-Your-Customer (AML/CFT/KYC) Compliance Policy.

– Fraud detection plan.

– Risk Management policy.

– Consumer Protection Policy & Policy.

Can a Super-Agent have agency contracts with more than 1 Financial Institution or Mobile Money Operator?

Yes, the Guidelines prohibit exclusivity of agent banking relationships, putting Super Agents at the liberty to have agency Agreements with several Financial Institutions and Mobile Money Operators.

What are some of the post-operating Compliance requirements/ permissible and non-permissible activities for Super Agents?

Permissible Activities

– Super Agents can accept Monetary deposits and withdrawals from customers.

– Utility Bills payment services.

– Salary payment services.

– Local money value transfer services.

– Balance Enquiry services.

– Mini-statement generation & issuance services.

– Collection and submission of account opening & other related documentations.

– Agent Mobile payments / Banking services.

– Cash disbursement & Cash repayment of loans

– Collection of Bank mail/Correspondence for customers.

– Any other activity as the Central Bank of Nigeria may from time to time prescribe.

Non-Permissible Activities

– Charging the customer any fee.

– Giving any guarantees.

– Carrying out transactions where a receipt or acknowledgement cannot be generated.

– Offering Banking services of its own accord.

– Carrying out a transaction when there’s communication failure with the Financial Institution ( The Principal).

– Continuing with the agency business when it has a proven criminal record involving fraud, dishonesty, integrity or any Financial impropriety.

– Rendering Banking services not specifically mentioned in its Agency Banking contract.

– Undertaking cheque deposits & encashment of cheques.

– Providing cash advances.

– Being run or managed by a Financial Institution’s employee or associate.

– Transacting in Foreign currency.

– Subcontracting another agent to operate on its behalf without being a licensed Super Agent.

Conclusion :- While the above write-up is definitely not exhaustive, it can be seen regardless that Agency Banking is a potentially very lucrative Fintech offering that can be leveraged on to provide positively disruptive Financial Inclusion services despite its rather strict Regulatory Framework. It is thus advised that anyone seeking to go into Agency Banking should further consult with his Solicitor going forward.