Agency Banking Contributes N7tn Annually in Transaction Value – Lawmaker
The Deputy Senate President, Sen. Barau Jibrin says agency banking contributes seven trillion Naira annually in transaction value.
Jibrin said this on Wednesday in Abuja at the 7th Annual Conference of Association of Mobile Money and Bank Agents in Nigeria (AMMBAN).
Speaking at the conference with the theme, “The Future of Agency Banking: Creating Value for Sustainable Relevance” the lawmaker said that the figure was according to
Enhancing Financial Innovation and Access (EFInA).
Agency banking is a model where financial institutions, banks and even businesses use third-party agents, such as retail outlets or individuals, to provide banking services on their behalf
The senator, who was represented by Prof. Bashri Fagge, his Special Adviser on Policy and Monitoring said agency banking was integral to economic growth.
According to him, agency banking served over 60 million customers with limited access to financial services, and has significantly boosted financial inclusion.
“Agency banking is facing headwinds. With over one million agents nationwide, competition is stiff and commissions are being squeezed,’’ he said.
Jibrin said that President Bola Tinubu’s administration was determined to expand financial inclusion using agency banking as a priority.
He said that the Senate was also committed to supporting the growth of the financial services sector
The Minister of State, Federal Capital Territory (FCT), Dr Mariya Mahmood, said that agency banking had emerged as a powerful tool for expanding financial inclusion and providing access to financial services, especially in underserved and remote areas.
The minister, who was represented by a Protocol Officer, Alhaji Adamu Liman, said that the future of agency banking was not merely about transactions.
“It is about creating enduring value, forging lasting relationships and enhancing the socio-economic fabric of our communities,’’ she said.
Mahmood said that it was about leveraging innovation and technology to drive efficiency, improve service delivery and impact lives positively.
“In FCT, we recognise the significance of financial inclusion in our quest for an all-encompassing and equitable society.
“We are committed to supporting initiatives that promote the growth of agency banking while ensuring regulatory frameworks that prioritise consumer protection, transparency, and integrity.
“The challenges we face in this rapidly evolving financial landscape demand collaborative efforts between government, regulatory bodies, financial institutions, and stakeholders.
“It requires collective dedication to leverage the potential of agency banking to its fullest, and ensuring that it remains relevant, sustainable, and responsive to the needs of our citizens,’’ Mahmood said.
The National President of AMMBAN, Mr Victor Olojo, said the conference offered a unique opportunity to explore the transformative power of technology in shaping the future of financial services.
According to Olojo, the agents should delve into innovations like artificial intelligence, and digital currencies in reshaping the landscape.
He expressed gratitude to the regulatory bodies, including the Central Bank of Nigeria, the Nigeria Communications Commission and other sponsors for their steadfast support in navigating the dynamic financial ecosystem.
