…as NIMC appoints Lagos-based SecureID as first manufacturer
The upscaled National Identity Card in the works by the Federal Government throws up prospects of boosting micro loans administered in the country, as well as consumer credit through the reduction of default rate. It also displays the instrumentation to strengthen identity verification and reduce financial crimes committed under false pretext.
Also, with the centralised registry, the nation will benefit in terms of higher productivity occasioned by reduced loss of man-hours from frequent data capturing from government institutions such as for telecoms, Bank Verification Number (BVN), INEC, among others, The Nigerian Observer analysis shows.
The new identification project was announced by the National Identity Management Commission (NIMC), which stated that only registered citizens and legal residents with the NIN will be eligible to request the card.
NIMC also announced it has appointed SecureID, a Lagos-based company, as first manufacturer of National Domestic Card Scheme, AfriGo Card, an innovative identity solution with payment functionality for all types of social and financial services.
“The Federal Government of Nigeria, through the National Identity Management Commission (NIMC) in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), has launched an innovative identity solution with payment functionality for all types of social and financial services to be powered by AfriGO, a national domestic card scheme,” NIMC said in a statement at the weekend.
“The National ID card, layered with verifiable National Identity features, is backed by the NIMC Act No. 23 of 2007, which mandates NIMC to enroll and issue a General Multipurpose card (GMPC) to Nigerians and legal residents. This card will address the demand for physical identification enabling cardholders prove their identity, access government and private social services, facilitate financial inclusion for disenfranchised Nigerians, empower citizens, as well as encourage increased participation in nation-building,” it said.
Nigerians have longed for a centralised system such as the new project proposed by the Federal Government to save them from the difficulties and cost in time they face during frequent and multiple registrations as demanded by the authorities.
Elaborating on the features of the card, NIMC said the card, which will be produced to ICAO standards, will be useful for payment, loan administration, promotion of financial inclusion and give citizens access to government’s social services.
“Cardholders will also be able to use the cards as debit or prepaid cards by linking same to bank accounts of their choice. The card shall enable eligible persons especially those financially excluded from social and financial services have access to multiple government intervention programmes,” NIMC said.
Additional features, according to the statement, include travel, health insurance information, microloans, agriculture, food stamps, transport, and energy subsidies, among others.
In terms of the likely impact on micro loans, there is still a huge market unmet by the existing players because the loan requests of the people in need of such services fall below the tickets of commercial banks in Nigeria.
“With an estimated 39.9% of the adult population excluded from financial services and about 40.1% of the Nigerian populace living below the poverty level, the demand for microfinance services has maintained an upward trajectory over the last five years,” Agusto & Co stated in a report, adding that the demand for micro loans is driven by a high prevalence of economically active poor population, the low literacy level, and the relatively high level of financial exclusion.
The National Bureau of Statistics (NBS) estimated that about 103 million Nigerians were multidimensionally poor in 2022, and with food inflation high at 37.9 per cent, the World Bank has warned that more Nigerians would slip into poverty.
A 2023 survey conducted by the Enhancing Financial Innovation and Access (EFInA) found poverty as the major driver of financial exclusion, with the northern parts of the country the most financially excluded.
“EFInA’s A2F 2023 survey reports that poverty is a major driver of financial exclusion. Nearly 50% of unbanked adults have no financial account because they have no, little, or irregular income,” the body stated.
According to the survey, 33.9 million adult Nigerians or 32 per cent were financially excluded.
Not too long ago, the Federal Government introduced Tradermoni to provide microfinance loans and other support services to the financially excluded. Other empowerment schemes of this nature include the soft loans for rice farmers in the country. Notwithstanding, the new scheme is set to bring the best out of micro loan administration in the country.
As of the end of March 2024, there were 61.16 million Bank Verification Numbers (BVNs) in the country, up from 59.9 million as of December 2023. An average adult Nigerian has about two to three bank accounts, requiring the use of multiple ATM cards.
