Financial inclusion: CBN Licenses Innovectives as Super-Agent

Central Bank of Nigeria (CBN) has granted an approval-in-principle [AIP] to Innovectives, a leading provider of secure and affordable transaction channels for the unbanked and underbanked members of the public, to operate as a Super-Agent in the Nigerian financial services system. 
 
With this license, Innovetives would leverage on the Nigerian Inter-Bank Settlement System [NIBSS]’ switching infrastructure to enable inter-scheme Cash-In-Cash-Out (CICO) at all its agent locations.
 
Emmanuel Agha, MD and CEO of Innovectives, said the CBN expects the company and its partners to deploy, operate, and manage a robust, efficient, interoperable agency banking and mobile financial payment network with selected retail outlets operating as agents under the framework as approved by the CBN.
 
According to the CBN's Regulatory Framework for licensing Super-Agents in Nigeria, the Super-Agents shall be responsible for monitoring and supervising the activities of the agents; have information on the volume and value of transactions carried out for each type of service by each agent.
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The CBN said this volume and value of transactions should be made available to the principal; monitor effective compliance with set limits and establish other prudential measures in each case and take all other measures such as onsite visits and ensure that agents operate strictly within the requirements of the law, guidelines and the contract.
 
The apex bank said the AIP is not transferable and is valid for a period of six months after which a review of performance would be conducted to determine if the super-agent should be awarded a full license. 
 
He explained that the company’s financial inclusion strategy “is to ensure that all categories of informal workers in Nigeria have access to affordable financial services through its agent network”.
 
He added that the proposed suite of services would address critical social challenges of informal workers such as saving culture, access to credit, wage payment, health insurance, and informal pension.
 
Other services the company would roll out include dues payment and collection, thrift and credit, conventional financial services such as funds transfer, withdrawals, deposits, purchase of goods and services, bills payment and airtime top-up among others.‎