2019 BC Retreat Brochure

11th Annual

Bankers’ Committee Retreat

DELIVERING INCLUSIVE GROWTH:
LEVERAGING DIGITAL FINANCE

DATE
Friday 13th and Saturday 14th December 2019
VENUE
TCC Resort and Conference Centre, Ogere, Ogun State

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CONTENTS

Central Bank of Nigeria Governor’s Address 3
Subcommittee Chairman’s Address 7
Retreat Agenda 8
Host Governor’s Profile 14

2019 RETREAT OBJECTIVE

To define a clear program of advancing digital and mobile to impact sustainable
economic growth and development.

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GOVERNOR’S ADDRESS

The 2019 BANKERS’ COMMITTEE Retreat. is the 11th in a
series of strategic reviews of critical developments in the
Nigerian financial system, in particular and the
macroeconomy, in general. Accordingly, this year’s
Retreat titled “Delivering Inclusive Growth: Leveraging
Digital Finance” comes at a critical time in our nation’s
history, when efforts are being made by the monetary
and fiscal authorities to structurally rebalance and
diversify the Nigerian economy. This can be achieved by
leveraging digital finance tools in supporting growth
across key sectors of our economy including agriculture,
manufacturing and the creative industries.

Digital finance refers to the use of mobile phones, electronic cards and the internet to
facilitate the movement of funds between individuals, governments and businesses. When
properly deployed by banks and other financial institutions, it could be used towards the
development of savings, insurance and investment products for consumers. Additionally, it
can provide Nigerians with a faster and more efficient payment service, as well as improved
access to credit. Access to credit in particular is often recognised by small-holder farmers
and MSMEs as a strong constraint to their expansion and growth.

For the monetary policy authorities, improved access to finance for a majority of Nigerians
through digital channels, enhances the efficacy of monetary policy actions, by aiding our
ability to influence credit conditions in the economy. It could also enhance fiscal buffers by
increasing tax revenues and minimising waste in government intervention programs.

Notwithstanding the gains that are available to Nigerians from improved access to finance,
close to 36 percent of eligible Nigerians do not have access to formal financial services.
These individuals often access finance and credit at an exorbitant price. It also acts as a huge
deterrence to the growth of their businesses. In addition, the high cost of maintaining bank
branches in rural communities, which are less dense in population relative to urban
communities, also limits the supply of banking services in many rural communities.

Given our large population size of almost 200 million, a report by McKinsey and Company
notes that improved access to finance and credit could bolster Nigeria’s GDP by about 10–
12 percent by 2025. Supporting policy measures that improve access to finance and credit
through digital channels is therefore imperative, as part of our efforts to boost Nigeria’s
economic growth.

With increased usage of mobile phones by over 87 percent of Nigerians and its ability to
support financial transactions through USSD and mobile app channels, the Central Bank of
Nigeria has implemented policy measure that will enable underserved Nigerians access
finance and credit via mobile devices. Individuals are now able to open bank accounts and e-
wallets from their mobile devices or through the internet. This alternative has resulted in a
significant reduction in the cost of providing financial services, relative to traditional brick
and mortar system of opening accounts at bank branches.

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GOVERNOR’S ADDRESS

Customers are also able to save time and money by conducting transactions on mobile
devices, relative to travelling to distant bank branches.

Advancements in technology such as data analytics, cloud computing, artificial intelligence
and cybersecurity are also working to improve the speed, quality as well as security of
financial transactions conducted through digital channels. Businesses have better visibility
on their income and expenses. Banks, credit bureaux and other financial institutions are also
able to leverage these advanced tools in assessing the credit worthiness of customers, by
analysing income and payment patterns in e-wallets and bank accounts. These
advancements are also helping to reduce the reliance on collaterals by some financial
institutions when providing loans to their customers.

Increased usage of digital finance tools can also support the development of online
platforms, that will enable farmers and SMES to sell goods and services to customers. Along
with an efficient logistics system, safeguards can be put in place to authenticate buyers and
sellers, as well as the quality of products being offered. Such platforms can support the
growth of our farmers, small businesses and by extension financial institutions. Farmers,
agro processors, and MSMEs should be able to enter in contracts with off-takers for the
purchase of their produce without engaging in physical contact with the other party. Credit
can then be provided on the back of such transactions to support the growth of our farmers
and small businesses. This will ultimately lead to the expansion of their business activities as
they will be in a better position to meet the needs of prospective customers.

In order to further our efforts at building a more inclusive financial system that will support
the growth of our economy, it is important to highlight the requisite building blocks that are
needed in order to harness the gains from the use of digital finance tools. These building
blocks include:

• Unique Identification Numbers: This is important in order to verify the identity of
individuals and to avoid duplicity. It enhances the comfort level of financial
institutions in providing services to verifiable entities through digital channels.
Even when they possess mobile devices, individuals in rural communities may be
unable to provide unique identification numbers that are required to open
accounts and e-wallets. In addition, the cost of enrolling individuals in rural
communities has often undermined access to financial services for rural dwellers.

• Financial Access Points – As noted earlier, building bank branches in rural
communities often comes at a high cost relative to the income generated from
such branches. As a result, cash payment still remains the dominant form of
payments in rural communities with limited uptake of digital tools. Even though
cash usage imposes safety concerns, higher pecuniary costs, and tangible
consequences relative to conducting transactions via digital channels.

• Robust Payment Infrastructure – Development of robust digital tools that enable
safe and secure financial transactions at a lower cost, are required in order to
enhance the gains from the use of digital finance tools..

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GOVERNOR’S ADDRESS

Such tools should improve the speed and reliability of financial transactions
conducted through digital channels. It should also provide for a robust cyber
secure system that prevents theft, phishing, money laundering and other forms of
financial crimes. Such systems should also be accompanied by a strong dispute
resolution framework. These measures are needed in order to increase the
confidence of underserved Nigerians in conducting digital financial transactions.

It is in light of these factors that the CBN has implemented several initiatives which will
ultimately support improved access to finance and credit through digital channels. Some of
these initiatives include:

1. Issuance of the regulatory framework for Agent Banking and Agent Banking
Relationships in Nigeria: This framework was issued in 2013, and it was the
Bank’s signal to the industry of our commitment towards simplifying banking
services for financial inclusion. The framework was aimed at providing minimum
standards and requirements for agent banking as a delivery channel for offering
banking services in a cost-effective manner. The overall objective was promoting
financial inclusion. Agents were permitted to conduct cash deposits and
withdrawals, bill payments, funds transfer services, mini statements
provisioning, cash disbursements, mobile agent services, collection of loan
repayments and a lot of other services.

2. Introduction of the Super Agent License: The Bank introduced a license
category for Super Agents in 2016 in the payments ecosystem. The super-
agents were expected to complement the efforts of the Mobile Money Operators
and banks, by hiring and managing sub-agents and also extending financial
services to the unbanked at a minimal cost. The Super-Agents are expected to be
effective at extending the reach to locations where bank branches may not be
available. Under this category and working with the Bankers Committee and the
Nigeria Postal Service, we enabled the creation of Nirsal MicroFinance Bank in
2019, which has begun to provide financial services across all NIPOST outlets
nationwide. This measure will enable individuals in underserved locations to
access financial services at a reasonable cost.

3. Mobile Money: To further address observed absence of a wide-spread agent
network, and concentration of agents in the urban areas, the Central Bank of
Nigeria released the Guidelines for Mobile Money Services in Nigeria, with the
intention of bringing Mobile Money Operators on board by utilizing their network
spread. We have so far provided 15 licenses to several mobile money operators
who are working to increase access to finance using digital channels.

4. Shared Agent Network Expansion Facility (SANEF): The Shared Agent Network
Expansion Facilities (SANEF) project was introduced in 2018. It is a joint initiative
of the Central Bank of Nigeria (CBN) and the Bankers’ Committee. SANEF is
expected to result in a rollout of 500,000 agent touch points by 2020. The
services to be delivered at such touch points, include Cash-in, Cash-out, Funds
Transfer, Bill Payments, Airtime purchase, Government disbursements as well as

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GOVERNOR’S ADDRESS

remote enrollment of BVN to an estimated 60 million Nigerians that are currently
under-banked or unbanked. Consequently, licensed Mobile Money Operators and
Super Agents are expected to deploy financial services agents’ outlets in under-
served urban, semi-urban and rural areas in Nigeria, with higher priority in the
Northern geo-political zones where financial exclusion rates are higher.

5. Issuance of the Regulatory Framework for the use of Unstructured Supplementary
Service Data (USSD) in the Nigerian Financial System: This Regulatory Framework
was issued in 2018, by the Bank, to promote the efficient use of the USSD for Financial
Services in Nigeria. The USSD is a low-cost channel being utilized predominantly for
low value transactions, but sometimes for relatively high value transactions as well.
The framework, developed with the support of the TELCO regulator and stakeholders,
established uniform rules and risk-mitigation considerations for operators
implementing USSD for financial services offering in Nigeria.

6. Creation of Payments System Management Department (PSMD): In furtherance of
our efforts to support greater use of digital finance tools, the Payment Systems
Management Department was created in 2018 to license, regulate and supervise the
activities of all Payments Service Providers (PSPs).

7. Payment Service Bank licenses: In order to leverage on the distribution network of
FMCGs and telecommunication firms, as well as the innovations associated with
fintech, the CBN instituted a Payment Bank License regime in 2019, which enables
these companies to provide limited banking services in underserved communities. So
far 3 payment service bank licenses have been awarded, and we expect this measure
to support our efforts at building a more financial inclusive society.

8. Minimum Loan-to-Deposit Ratio and Global Standing Instruction: The increase in
the minimum loan-to-deposit ratio to 65 percent and the new policy measure which
enables banks to impose standing instructions on the accounts of customers in other
banks, has led to a rise in the provision of loans to customers by banks. Between May –
October 2019, over 1.16 trillion worth of loans were provided to bank customers.
Several banks leveraged digital analytic tools in the provision of loans to customers
during this period.

In furtherance of these efforts, this Bankers’ Committee Retreat is rightfully focused on
strategies to address current constraints that inhibit the use of digital finance tools.
Distinguished participants, I welcome you to this Retreat and I look forward to a robust
discussion and far-reaching outcomes that will actualize our collective intent of ensuring
the financial sector plays a key role toward supporting greater growth and employment
generation in our country Nigeria.

I thank you for your participation.

Godwin I. Emefiele, CON
Governor, CBN
December 2019

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SUBCOMMITTEE
CHAIRMAN’S ADDRESS

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RETREAT AGENDA

DAY 1, Friday 13th December 2019
8:30 – 9:00am Opening speech and welcome address

Mr. Godwin Emefiele
Chairman, Bankers’ Committee

Host Governor’s opening address

9:00 – 9:45am His Excellency Prince Dr. Dapo Abiodun
Executive Governor, Ogun State

Status/Feedback on 2019 Bankers’ Committee Economic
Development Plan

Mrs. Hamda Ambah Mr. Herbert Wigwe Mr. Kennedy Uzoka
Chairman, Chairman, Chairman,
EDSG Subcommittee Creative, Services, & IT Export Facilitation
Sectors Enablement Subcommittee
Subcommittee

Program overview and agenda walk through

Mrs. Hamda Ambah
Chairman,
EDSG Subcommittee

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DAY 1, Friday 13th December 2019

9:45 – 10:45am Presentation:
Trends in the Global Economy and Implications for Nigeria

Topic Overview:
A discussion on trends and emerging considerations in the global economy and
implications for the Nigerian economy and financial system

10:45 – 12:00pm Dr. Amine Mati
Senior Resident Representative,
International Monetary Fund

Presentation:
Bank 4.0 – The Future of Financial Inclusion

Topic Overview:
To encourage disruptive thinking – challenging participants to produce innovative
solutions that transform the financial system and drive inclusive economic growth.

12:00 – 1:15pm Mr. Brett King
Founder, Moven

Plenary Session I
Diversifying the Nigerian Economy: Digital Finance Potential

Topic Overview:
A discussion on the opportunity to optimise digital finance and realise
sustainable diversification of Nigeria’s economy

Mr. Olugbenga Mr. Obi Mr. Hussaini Dr. Gbenga Mr. Premier
Agboola Emetarom Yakubu Odegbami Oiwoh,
CEO, Flutterwave CEO, Appzone CEO, Linkifin CEO, Youverify CEO, NIB9SS

DAY 1, Friday 13th December 2019

1:15 – 2:30pm Country Case Study:
Alternative Worlds: Lessons learned for the Nigerian Context

Topic Overview:
A success story to inspire on the driving inclusion and transformation leveraging
digital technology

Mr. Chris Wang
Partner & Head of Fintech,
KPMG China

LUNCH 2:30 – 3:30pm

3:30 – 5:00pm Plenary Session II:
Streamlining Taxation through Digital Technology

Topic Overview:
To identify the opportunity to leverage digital technology to optimise the
effectiveness of fiscal revenue collections and administration

Mr. Albert Ms. Nike James Mrs. Ifueko Sir. Ndukwe Mr. Taiwo
Folorunsho Partner, Tax, Omiogui-Okauru
Partner, KPMG Managing Partner, Osogho Ajala, OON Oyedele
Pedabo Compliance Managing Director, Head, Tax,
Professionals Soulmate Industries PwC Nigeria

BANKERS’ COMMITTEE MEETING 5:00 – 6:30pm

GALA DINNER 7:30pm

7:30 – 8:30pm Presentation:
The Nigeria Humanitarian Fund Private Sector Initiative

8:30 –8:45pm Mr. Edward Kallon
UN Resident/Humanitarian Coordinator and UNDP Resident Representative
Ms. Edem Wosornu
UNDP Resident Representative

Sustainable Banking Award

DAY 2, Saturday 14th December 2019
8:30 – 8:40am Day 1 Recap

Photo

TBD

8:40 – 10:10am Plenary Session III:
Cybersecurity – Protecting the Financial System

Topic Overview:
A discussion on effective strategies to mitigate cyber security risks and key
essentials to counteract growing cyber threats.

Mr. Justin Arnoldi Ms. Confidence Mr. Seun Mr. Opeyemi Mr. Tope Aladenusi

Head, Digital Staveley Ogunpolu Onifade Cyber Security Lead,
Transformation, Cybersafe Sales Manager CEO, Afenoid Deloitte West Africa
Blue Turtle Foundation West Africa,
Symantec

10:10 – 11:40am Plenary Session IV:

Digital Ecosystems for SMEs

Topic Overview:

A discussion on the rise of the platform economy and the potential

opportunities for value added solutions and offerings

Obi Ozor Mr. Iniabasi Mr. Bolaji Ms. Adia Juliet
CEO, Kobo360 Sowho Anammah
Akpan Akinboro MD, Mines.io CEO, Jumia

Country Manager, CEO, Cellulant 11

OPay Nigeria

RETREAT AGENDA

DAY 2, Saturday 14th December 2019

11:40 – 1:40pm Break Out Session

Discussion Topics
BVN 2.0: A Digital Identity Revolution
Topic Overview:
To deliberate on extending the BVN model to enable a seamless digital identity

for the financial system and economic development.

Cyber Security
Topic Overview:
To review the current state of cybersecurity structures and mechanisms that

protect the financial system and discuss the role of the government and

financial industry in combatting cyber threats

Optimising Taxation through Digital
Topic Overview:
To determine and propose suggestions on how the Bankers’ Committee, in

collaboration with Government, can leverage digital technology to improve the

effectiveness of tax collections and administration

1:40 – 2:10pm Breakout Session Debrief
2:10 – 2:40pm Day 2 and Retreat Recap

Photo

TBD

Conclusions and Close

2:40pm Mr. Godwin Emefiele
Chairman, Bankers’ Committee

Media Briefing

CBN Committee of Governors, Members of Economic Development
Subcommittee

Prince Adedapo Oluseun Abiodun, MFR, Governor of Ogun
State, Nigeria, was born on Sunday, 29th May, 1960 into the
family of Dr. Emmanuel and Mrs. Victoria Abiodun of Iperu-
Remo, in Ikenne Local Government of Ogun State. Both
parents are teachers.

He attended Christ’s School Ado Ekiti in 1972, St. Joseph’s
College, Ondo in 1977, and later Ondo High School, in 1978.
His education followed the movement pattern of his
parents who served in different parts of the then Western
Region. Dapo Abiodun proceeded to the prestigious

University of Ife, Ile-Ife Osun State (now Obafemi Awolowo University) where he studied
Civil Engineering but later transferred to the Kennesaw State University in Atlanta, Georgia,
United States and where he graduated with a BBA in Accounting in 1986.

Dapo began his career with Glock Inc. USA as Cost Accountant and worked between 1989-
1991. Thereafter, His passion for the motherland made him return to Nigeria and he
immediately embarked on the entrepreneurship voyage. He founded a number of successful
businesses. Until his election as Governor of Ogun State, he was Chairman and / or Chief
Executive of several
reputable companies which included Crestar Hydrocarbons Limited, OMSHeyden
Exploration and Production Limited, Heyden Petroleum Limited, Alarmnet and Innovative
Ventures Limited, and First Power Limited. As a result of his vast wealth of experience in
boardroom activities, corporate governance and finance, Prince Abiodun became a regular
face at Board Meetings of several blue-chip companies.

His experience transcends the private sector. He also served as a member of various
Presidential Committees like the Presidential Think Tank set up by President Olusegun
Obasanjo in 2001. He was appointed Chairman, Oil and Gas Committee of Ogun State in
2009 and served as Chairman of Depot Chairman of Depot and Petroleum Product
Marketers Association (DAPPMA) from 2012 till 2019. Prince Abiodun, in 2018, was
appointed Chairman of Corporate Affairs Commission (CAC) by President Muhammadu
Buhari and led a number of reform initiatives that standardized and improved the business
registration process in the country, leading to a higher ease of doing business ranking for the
country.

In 2014, he was honoured by President Goodluck Ebele Jonathan with the prestigious
National Award of Member of the Order of the Federal Republic of Nigeria (MFR).

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In 2018, he was awarded with a Doctor of Science in Business Development and
Administration (Honorary Causa) Degree from the Adeleke University and Doctor of Finance
(Honorary Causa) Degree from the Ekiti State University as a consideration of significant
positive impacts and immense contributions to the development of humanity and the
nation.

Political Antecedence
On his return from the U.S.A and in line with his commitment to the development of the
State, and love for his people, he contested and won the Ogun East Senatorial seat way back
in 1998 on the platform of the defunct United Nigeria Congress Party, emerging as the
youngest senator-elect in the country. The victory was, however, truncated by political
developments in thecountry that aborted the Third Republic and the assumption of office of
the elected political office holders. He later joined the Peoples’ Democratic Party in 1999 as a
founding member on which platform he contested for the governorship ticket in Ogun State
in 2002. He emerged as the runner-up to the winner of the ticket and also eventual winner at
the general elections.

Undaunted, he threw himself into the Ogun East Senatorial race as the flagbearer of the All
Progressive Congress (APC) in 2015 losing narrowly to the winner.

Whilst his previous political journey might have been a mixed bag, his love for his people,
commitment to serve them and passion for the development of Ogun State never waned a
bit. Therefore, in 2018, he made a comeback and contested for and won the governorship
ticket of the APC in Ogun State in what was arguably the most celebrated governorship
contest in the 2019 general elections.

His message of Building our Future Together resonated across the State and energized the
people resulting in a resounding victory at the 2019 polls, thus emerging as the 5th elected
Governor of Ogun State. Prince Dapo Abiodun was sworn in on the 29th May, 2019,
coincidentally his 59th birthday.

Governor Dapo Abiodun is happily married to his childhood sweetheart, Bamidele, and the
union is blessed with wonderful children.

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