The Deputy Senate President, Barau Jibrin, has revealed that agency banking contributes a staggering seven trillion Naira annually in transaction value, serving over 60 million Nigerians who have limited access to traditional financial services.
Mr. Jibrin made this disclosure on Wednesday in Abuja at the 7th Annual Conference of Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), themed “The Future of Agency Banking: Creating Value for Sustainable Relevance.” He cited Enhancing Financial Innovation and Access (EFInA) as the source of this figure.
Agency banking operates on a model where financial institutions, banks, and businesses utilize third-party agents, such as retail outlets or individuals, to provide banking services on their behalf.
Represented by Prof. Bashri Fagge, his Special Adviser on Policy and Monitoring, the senator emphasized the integral role of agency banking in driving economic growth. However, Mr. Jibrin also acknowledged the challenges facing the sector, including intense competition among the over one million agents nationwide and the downward pressure on commissions.
Highlighting the government’s commitment to expanding financial inclusion through agency banking, he praised President Bola Tinubu’s administration for prioritizing this initiative and assured the Senate’s support for the growth of the financial services sector.
Dr. Mariya Mahmood, the Minister of State, Federal Capital Territory (FCT), underscored the significance of agency banking in expanding financial inclusion, particularly in underserved and remote areas. Represented by a Protocol Officer, Adamu Liman, she emphasized that the future of agency banking transcends transactions; it is about creating enduring value, fostering relationships, and enhancing the socio-economic fabric of communities. Dr. Mahmood also stressed the need for leveraging innovation and technology to drive efficiency, improve service delivery, and positively impact lives.
Acknowledging the challenges of the rapidly evolving financial landscape, Dr. Mahmood called for collaborative efforts between government, regulatory bodies, financial institutions, and stakeholders to fully harness the potential of agency banking, ensuring its relevance, sustainability, and responsiveness to citizens’ needs.
Victor Olojo, the National President of AMMBAN, affirmed that the conference provided a unique platform to explore the transformative power of technology in shaping the future of financial services. He urged agents to embrace innovations such as artificial intelligence and digital currencies to reshape the financial landscape, expressing gratitude to regulatory bodies and sponsors for their unwavering support in navigating the dynamic financial ecosystem.
As agency banking continues to play a pivotal role in driving financial inclusion and economic growth, it is imperative for stakeholders to collaborate, innovate, and adapt to ensure its sustained relevance and impact on the Nigerian populace.
