Currency swap crisis: Osinbajo seeks deployment of more Fintech

Currency swap crisis: Osinbajo seeks deployment of more Fintech

As Nigerians continue to experience difficulties in accessing cash, Vice President Yemi Osinbajo, has urged major players in the FinTech space, to explore more possible ways of mitigating the current hardships Nigerians are encountering.

This is as Osinbajo expressed displeasure over the difficulties experienced by Nigerians in getting the new naira notes.

Despite President Muhammadu Buhari’s assurance on Friday that the issue is receiving his attention, several Nigerians have continued to besiege the Automated Teller Machines (ATMs) and Point of Sale (PoS) cash operators to access funds without success.

As at Saturday, at many of the POS points in Abuja, cash scarcity still persists as many of the operators were shut down due to the unavailability of cash to dispense.

At the few cash points where money was available, those who collected N5000 (five thousand) were made to pay an extra N1000 to access their money.

But the Vice President, who met some of the regulators, urged them and the banks to deploy more FinTechs and money agents to the hinterlands to address the worrying situation.

“You need cash to pay for transport. For instance, in Abuja how do you take drop or use a Keke NAPEP without cash, or buy foodstuff on the road or in canteens, or even buy recharge cards?

“Parents with kids in public schools give money daily to their children for lunch, most commerce are informal, so you need cash for most things,” Osinbajo pointed out.

During the virtual interactive session with a number of FinTech investors and ecosystem players, the Vice President said that the Central Bank of Nigeria and the commercial banks should work with all FinTechs that have mobile money agents, not just some of them, in order to reach the farthest places in the country.

According to him, “It seems to me that banks must engage their mobile money operators – FinTechs with mobile money licenses and many of them have micro-finance bank licenses now and already have a network of mobile money agents or human banks or human ATMs (as they are sometimes called) who are responsible to them and they can supervise by themselves. They can do currency swaps and open bank accounts.”

Osinbajo’s statement came on the heels of Friday’s meeting between President Muhammadu Buhari and some All Progressives Congress (APC) governors at the Presidential Villa.

The President had after the meeting assured the nation that the challenges are being addressed and would be solved very soon.

Speaking further about some of the concerns arising from the redesign of the new naira notes, Osinbajo stated that “more disturbing is the fact that after depositing your old notes, there are no new notes, so people everywhere in the urban areas and rural areas simply have no money.”

The Vice President acknowledged that “there are logistical challenges that have to be addressed by the CBN and the banks, especially from the point of view of the average Nigerian and those in the hinterland who hardly use any electronic platforms.”

He also observed that while there has always been a certain failure rate in online banking and money transactions, they have become even more difficult now with the increase in the number of transactions congesting the system.

Read also: Fintechs must create value beyond facilitating payments to be competitive – Flutterwave CEO

His words: “so where in the past you used POS or any of the electronic platforms, you had maybe 20-30 percent failure rate, now because everyone is trying to get on those platforms, obviously, the failure rate is much more and the problems are much more pronounced.”

He thanked the participants at the meeting for their commitment and contributions, noting that “it has really been revealing hearing all your thoughts about what is going on, our country just simply needs to have the quality of advice that I have received, today.

“We really need to make progress even as we make efforts to deal with some of these issues confronting us today.”

In separate remarks, some of the players made valuable suggestions on how to address the current situation in the country and offered to support the government at all levels with the required expertise to address the bottlenecks.

They suggested that USSD fees and the cost of data be reduced, while regulators should remove floor prices and called for relieving choke points in online transactions by cutting out some of the technical procedures.

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