Explainer: What you need to know about the shared agent project

Recently, specifically in March this year, the Central Bank of Nigeria (CBN) in collaboration with the Bankers Committee established the Share Agent Network Expansion Facility (SANEF).
A lot of Nigerian consumers and businesses have been asking questions about this project and how it can help improve the economy.
Here are what you need to know about this project
Shared Agent Network Expansion Facility is a project powered by the Central Bank of Nigeria, Deposit Money Banks (DMBs), Nigeria Inter-Bank Settlement Systems (NIBSS), licensed Mobile Money Operators (MMOs) and Shared Agents with the primary objective of accelerating financial inclusion in Nigeria.
Financial inclusion
The CBN in collaboration with stakeholders launched the National Financial Inclusion Strategy on October 23, 2012 aimed at further reducing the financial exclusion rate of adult population from 53.0 percent in 2008 to 20 percent by 2020.
Several policies and initiatives have been introduced by the CBN to ensure that the target is met. The CBN introduced the cash-less policy in 2012 as part of efforts to reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach. In collaboration with other key financial sector regulators, the CBN in 2006 conceptualized the Financial System Strategy 2020.
Also to further ensure that the financial inclusion target is met, the CBN, in 2017, inaugurated the Financial Inclusion State Steering Committee ( FISSCO) as well as the Financial Inclusion State Steering Committee (FISSCO).
Why introduction of SANEF
The initiative involves on-boarding 40 million low income and unserved Nigerians into the financial system, increasing financial access points from the current 50,000 to 500,000 by 2020 and deepening access to mobile and digital financial products and services such as savings accounts, micro loans, insurance, pensions by Nigerians.
The project seeks to deepen financial inclusion in Nigeria through an integrated ecosystem with strong regulatory oversight, consumer protection and interoperable payment systems with limited concentration risk.
It will create a platform for Nigerian owned financial services companies to grow, whilst empowering and creating jobs for Nigerians. So, wherever the SANEF sign is, a customer can perform basic financial services such as account opening, cash deposits, cash withdrawals, funds transfers and bills payments.
What do Nigerians stand to benefit from the project?
It will reduce transaction cost, provide convenience, job opportunities and increase adoption of digital financial services.
It provides a platform to handle government social disbursements and initiatives. In addition, it promotes Financial Inclusion and empowerment, positive social impact and development. 500,000 new jobs will be created through SANEF by 2020.
To the financial sector
The initiative will Increase adoption of digital payments, agility and flexibility, lower operational costs. It will reduce the barriers of lending to individual and small businesses, as well as help in Integration of the formal and informal economy, social impact and development.
To the CBN and the government
The project will promote financial inclusion and social economic development. It will help in integration of the formal and informal economy, inclusive growth and development. It will enhance the ability to drive digital payments; improve tax collections, reduce crime and make social disbursements. The initiative will reduce cash dependency and improved data gathering.
What has been done so far?
There has been the creation of over 70,000 new financial access points, and nine operators are currently party to SANEF with N4.5 billion disbursed.
The stakeholders have carried out trainings in different region, including Anambra, Kebbi and Kano among others. Also market storm has been done in Kaduna, Kano and a few other states, sensitising and awareness creation.
Risks
Conflict of interest and customers’ complaints are seen as part of the risk factors but the project committee chairman has explained that conflict resolution mechanism has been incorporated in the project plans, while assuring that there would be no conflict.
Future plans
There are plans to scale up Bank Verification Number (BVN) to 70 million by 2020 from 33 million currently. Already, 10,000 remote BVN devices have been ordered by NIBSS and are currently being deployed to Banks, MMOs and Super Agents.
NIBSS and the banks are committed to enrolling 40 million new unique BVNs between now and year 2020, of which 10 million would be enrolled in 2018, 15 million in 2019 and 15 million in 2020, and NIBSS will pay agents N100 for every unique BVN enrolled.
The SANFE project will see new product design that will help deepen financial inclusion such as a savings account bundled with an array of features (insurance, pension, micro credit). This will create a pull factor to attract the financially excluded into the system.

HOPE MOSES-ASHIKE