The national ID card developed by the National Identity Management Commission (NIMC) is to be not only a source of accurate identification, but also a tool for financial inclusion.
The card is to have functionalities that allow both the unbanked and under-banked have access to financial services, and ultimately, credit facilities.
“Though the National ID card is to perform a primary function as a means of identification, It would be a national ID card with payment functionality”, says Tunji Durodola, GM, NIMC, representing Chris Onyemenem, DG, NIMC, at the recently concluded 2014 2nd Annual National Credit Reporting Conference held in Lagos.
“If someone in the village has a card and no bank account, money can be sent from one national ID card to his ID card via the ATM”, he explains.
This would allow millions of Nigerians above fifteen, especially the unbanked, participate in the cashless society.
According to him, “The national ID card is to be a single version of truth which drastically reduces fraud and identity theft.”
The card is designed with a chip which contains vital information about the subject, including his/her personal, health, transport and financial details.
NIMC is partnering with MasterCard for the first million and thereafter, Verve, Visa and other financial intermediaries in future releases of the card.
Access Bank would work with NIMC as the pilot bank for the first one million Nigerians, after which the process would be open to other banks.
Speaking on the harmonization of identification processes by different government parastatals, Durodola said, “Enrolment requiring biometrics will be harmonized by January 2015. Harmonization is a core focus of NIMC right now. ”
However, he points out that the one exception is Biometric Verification Number (BVN) initiated by the central bank. Nonetheless, NIMC and the CBN would collaborate on the identification process and data sharing.
According to results of an Enhancing Financial Innovation & Access (EFInA) Access to Financial Services in Nigeria 2012 survey, over 34.9 million Nigerian adults representing 39.7 per cent of the adult population were financially excluded. Only 28.6 million adults were banked, representing 32.5 per cent of the adult population.
A Financial Inclusion Insights (FII) 2013 survey revealed that 44 per cent of the Nigerian adult population have access to a bank account, 38 per cent have a bank account, and 35 per cent are active bank account holders.
Financial inclusion is the provision of a broad range of high quality financial products, such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population, especially the low income segment.
Evidence worldwide shows that access to financial services contributes both to economic growth and wealth creation. For Nigeria it is key to tackling the ‘poverty’ trap, according to EFInA.
SOURCE: Businessday Online (Nigeria)
Apr 23, 2010 26
Jun 13, 2015 0
1 year ago
Jun 17, 2015 0
Jun 13, 2015 0