Category: Niger Delta

A group, APC Delta State 3is Forum has urged President Bola Tinubu to address marginalisation in Delta South.

In a letter addressed to the President and dated August 4, the forum noted that requirement for  fair representation in government, from the federal to the state, is enshrined in Section 14(3) of the Constitution and the zoning practice of the  party.

It said the equitable principle of zoning had  been disregarded in the state, with two ministerial nominees,  Hon Stella Okotete and Festus kayemo (SAN) from Delta Central.

The group urged Tinubu to expedite action in addressing the marginalisation of Delta South as  the two Delta State ministerial nominees are from the Central Senatorial District as well as the  party chairman and governorship candidate.

Read Also: ‘I joined APC because of Tinubu’s leadership qualities’

Quoting the constitution, the group said : “The composition of the Government of a State, a local government council, or any of the agencies of such Government or council, and the conduct of the affairs of the Government or council or such agencies shall be carried out in such manner as to recognise the diversity of the people within its area of authority and the need to promote a sense of belonging and loyalty among all the people of the Federation.”

The letter was written and jointly signed by the following,

Chief Lucky J. Esigie, JP;​          Amb Felix Datuowei​​​ ;   Mr Evans Omatsoguwa;

      (Chairman/Isoko)​​​(Co-chairman/Ijaw)​​    ​   (Co-chairman/Itsekiri)

    Dr Ogaga Ifowodo;​​       Prof. Moses Adagbabiri (Secretary);​      Wilson Alatsha, a lawyer;

    Mr Tony Osauzo;​​               Hon. Ebiakpor Ezebri​​​ ;      Bishop Victor Omunu;

Rear Adm. John Kpokpogri (rtd)​ ;  Chief Augustine Seibi​​​  and  Mr Charles Omadeli.

    Elder Jonathan Ugu​​     ​    Engr. Jude Ebikefe​​​  Mr Omatsoguwa T. U. Ereku

   Elder Emmanuel Adoluaji​   ​Mr Oroupade Akpomelade​​      Hon Omatseye Akatakpo

Read Also: Tinubu promises to reduce fleet of cars – Joe Ajaero

• By, Olaleye Akerele

Someone ought to advise Philip Shaibu that a sitting governor’s unavailability to answer telephone calls does not equate to “trying to impeach him”. His recent act of seeking a legal injunction against an impeachment that, apparently, nobody was pursuing is a startling demonstration of a self-inflicted narrative that seems to be spun from thin air.

Indeed, the actions and statements emanating from the Deputy Governor himself seem to be driven more by personal ambition and childish indignation than by any substantive allegations of wrongdoing. His fears, intensified by his move to seek legal protection against a contrived impeachment, underscore the type of person that he truly is.

In what mature political environment would a deputy take umbrage to the point of litigation over something as trivial as unanswered phone calls or perceived slights at official functions? Let’s take a closer look at this supposed injustice that has been paraded before our revered courts. Mr. Shaibu details in his complaint a series of events that are perfectly normal within the context of governance. Yet, he has chosen to inflate these incidents into a full-fledged legal drama, exploiting the judiciary for personal gains and painting them with the dark brush of conspiracy.

Read Also: I’m disappointed Philip Shaibu betrayed me, says Oshiomhole

This legal misadventure should be called out for what it is — nothing more than a spectacle, a grandstanding move to gain public sympathy and to create a narrative that fits his personal political agenda. It is upon these coattails that he hopes to ride into the position of governor of Edo State.

This, instead contributes constructively to alleviating the sufferings of the common man during these very trying times.

The allegations levelled by Shaibu read like the script of a tawdry political drama, filled with petty grievances and gross exaggerations. To turn to the courts without so much as a sensible claim is an abuse of court process, and an insult to the serious legal matters that our judicial system must contend with.

The mention of impeachment, in particular, is puzzling. Where is the evidence of any plan to unseat him? Where are the plots, the witnesses, and the factual foundation for this severe claim? It appears that the very mention of impeachment has been thrown into the mix merely to sensationalise a situation that is otherwise unremarkable.

In addition, the content and spirit of his inane petition reveal him for who he is: a childish, delusional character seeking attention that ought to be completely ignored. It is not immediately clear what he seeks to achieve with the false alarm, other than to draw attention to himself.

Read Also: VIDEO: Edo Deputy Gov Philip Shaibu trains with Super Eagles

What is clear, though, is that he does not understand the gravity of the office he holds, nor does he respect an electorate that is struggling for survival in the face of the prevailing harsh economic situation in Nigeria today.

At the end of the day, Philip Shaibu’s brazen sense of entitlement is more than a political misstep; it’s a threat to the very democracy that gave rise to his position. A presumption that he should naturally succeed to the governorship without consideration for competence, public opinion, or democratic procedure reveals a mind that misunderstands the core principles of governance.

This is not a monarchy; political office is not a birthright but a fair contest where public trust must be earned. Indeed, the tale of Philip Shaibu is a cautionary one, a vivid example of how personal ambition can corrupt and how misplaced trust can lead to discord. It is a lesson for all in politics that character matters, that loyalty must be genuine, and that power should never be sought for its own sake.

* Mr. Akerele wrote in from Ekpoma, Edo State

• By, Ifeatu Agbu

The rapid development of the Niger Delta region, which is the core mandate of the Niger Delta Development Commission, NDDC, got an impetus when the current Management, led by Dr Samuel Ogbuku, mounted the saddle at the Commission’s headquarters on January 5, 2023.

From day one, Ogbuku and his team were confronted with the daunting challenges of development in the Niger Delta region. However, the challenges spurred them to begin to look for new ways of achieving results. That inexorably led to the decision by the Commission to begin to do things differently.

In charting a new course, the Commission had to use new strategies, which emphasized transparency and accountability.

The new trajectory takes into account the vision of the NDDC, which is to create an enabling environment for the sustainable development of the Niger Delta region. The Management is also guided by the Commission’s mission, which is: “to facilitate the sustainable, even and rapid development of the Niger Delta, into a region that is socially stable, politically peaceful, economically prosperous and ecologically regenerative.”

The paradigm shifts at the NDDC did not come by chance. It came from good leadership. According to General Collin Powell, former Chairman of the US Joint Chief of Staff [1989-93] and the first African American to be appointed Secretary of State, you have to appoint the right calibre of people to deliver good results.

For him, “the organisation doesn’t really accomplish anything. Plans don’t accomplish anything either. Theories of management don’t matter. Endeavours succeed or fail because of the people involved. Only by attracting the best people will you accomplish great deeds.”

The Executive Management team in NDDC today appears to be hitting the right notes. This started with the solid foundation laid during a four-day Board and Management Retreat at the Ibom Icon Hotels and Golf Resort, Uyo, Akwa Ibom State. This set the tone for a new and re-invigorated journey.

Indeed, the management signaled that it would not be business as usual as it would enthrone transparency in its operations and reverse the resource-curse syndrome in the Niger Delta region.
At the end of the retreat, participants resolved that the NDDC should prioritize key sectors that would have huge impact on the standard of living of the people of the Niger Delta, namely: infrastructure, education, health and agriculture; the NDDC should pay particular attention to the security of lives and property and the protection of the poor and weak in the society; the NDDC should improve its youths and women empowerment programmes; the NDDC should consider implementing legacy projects that have the potential to benefit the people of the region, reduce poverty and improve the conditions of living of the people.
The stakeholders resolved to intensify efforts towards fast-tracking the development of the Niger Delta region. Along this line, they agreed to revisit and review the Niger Delta Regional Development Master Plan, which expired in 2020, to provide sustainable focus for the region.
They further resolved: “That the NDDC in its determination to take the region to greater heights shall engage in Public Private partnership arrangements with State Governments, International Oil Companies (IOCs) as well as International Donor Agencies with a view to executing mega projects for the region.”

To truly make a difference, the management adopted new methods to effectively drive sustainable development in the region. Thus, it decided to espouse the Public Private Partnership, PPP, model to provide alternative sources of funding for key development projects and programmes.

Consequently, a Management Committee on Public Private Partnership was constituted by the NDDC on January 18, 2023. The Commission observed that the only outstanding partnership it has entered into since inception was with respect to the construction of the Ogbia-Nembe Road. The 27-kilometre road, which connects 14 different communities of Bayelsa State, was constructed in partnership with Shell Petroleum Development Company, SPDC.

That multi-billion flagship project illustrates the kind of challenges confronting the Niger Delta. It cuts through the mangrove swamps with many bridges and 99 culverts.

To further explore the possibilities presented by a PPP model, the Commission organised a PPP summit in Lagos on April 25. At the Summit, with the theme: “Rewind to Rebirth,” the Commission signed a Memorandum of Understanding, MOU, with a United States-based firm, Atlanta Global Resources Inc., AGRI to build a railway network that will connect the nine states of the Niger Delta region.

The NDDC management had previously engaged the Nigerian National Petroleum Company, NNPC, Limited to propose a partnership for speedy development of the Niger Delta.

The Group Managing Director of NNPC Limited, Mr. Mele Kyari, agreed to co-fund some of NDDC’s projects tailored towards infrastructural development of the Niger Delta region. The partnership overture to the NNPC came on the heels of similar moves to get the hands of the Shell Petroleum Development Company of Nigeria Limited.

Again, the Commission engaged the members of the Oil Producers Trade Section, OPTS, of the Lagos Chamber of Commerce and Industry during their recent meeting in Lagos. According to Ogbuku, the management “recognizes that the OPTS, which embodies the IOCs, is a critical stakeholder of the NDDC, that is second only to the people of the region.”

Obviously, the NDDC alone cannot handle the task of developing the Niger Delta region. The Commission needs the support of all stakeholders to achieve the goal of developing the region. NDDC funds alone cannot fully develop the region. It needs the partnership of IOCs to achieve this.

Apparently, this prompted the management to step up the collaboration with various stakeholders, including the state governments to end the era of duplication of projects and promote harmony.

The NDDC boss noted that it was important to enhance collaboration between state governors, the NDDC, and other critical stakeholders to drive development through the monitoring and execution of regional projects.

Interestingly, steps are already being taken to strengthen the relationship between the Commission and the State Governments of the Niger Delta, to make them partners and not competitors.

These engagements have improved the visibility and broadened the scope of NDDC’s partnerships. In recognition of this fact, Ogbuku said that “stakeholders’ engagements were critical to the commission’s effectiveness. “We have, therefore, met with the civil society groups, traditional rulers and community leaders.

The traditional institution, being a highly revered group, was given due attention. Thus, the management visited the Olu of Warri, Ogiame Atuwatse III, in his palace in Warri, Delta State and the Amanyanabo of Okochiri, King Ateke Michael Tom in his palace in Okochiri, Okrika Local Government Area

To consolidate on the engagements, the management inaugurated a 2024 Budget Committee to interface with stakeholders in the budget process. The committee was charged with identifying the vision of the NDDC as an interventionist agency in order to prioritise the allocation of available resources.

Ogbuku assured that the Commission would produce a budget that would capture the present realities in the region, insisting that the document must have a clear vision. “This way, in implementing the it, there will be proper guidelines and it will not be distorted when it gets to the National Assembly. To achieve this, the NDDC must have a stakeholder’s conference to reach an agreement,” he said.

The NDDC boss maintained that the 2024 NDDC budget will be an inclusive budget that largely accommodates the interests of stakeholders in the Niger Delta region.

He said: “Stakeholders will have an opportunity to tell the NDDC the kind of projects they want in their areas of operations, so that they can be included in the budget. That is the plan for the NDDC budget for 2024. Henceforth, NDDC will capture every stakeholder in its budget; state governments, the IOCs, traditional institutions, everybody should be included in it. It will be an all-inclusive budget of the people of the Niger Delta.”

However, before coming up with the all-inclusive 2024 budget, the Commission had to deal with what the Managing Director described as a dysfunctional situation. “We met a situation where the Commission had no approved budget for 2021 and 2022.” Thankfully, the budgets for the two years, as well as that of 2023 have now been passed by the National Assembly.

With the budget in place, more projects and programmes will begin to roll out. In the light of this, the new concept developed by the Commission to work with the Niger Delta Chamber of Commerce in the training of youths and young entrepreneurs in the Niger Delta region, has every reason to succeed.

The plan, according to the NDDC boss, was to collaborate with the Niger Delta Chamber of Commerce to support Small and Medium Enterprises in the Niger Delta region.

He said: “For the new scheme to be successful, it will revolve around a Niger Delta Chamber of Commerce that will strengthen young entrepreneurs in the region. The goal is to stop a situation where youths will be at home and be receiving stipends. Hence, the Commission is changing its Youth Volunteer programme to Youth Internship Programme where youths will be attached to organisations for one year to learn skills.”

In the area of education, the NDDC under Ogbuku interacted with Vice Chancellors of four universities in the Niger Delta region and the dominant issue on the table was how to begin partnerships that will encourage research to help in finding solutions to some of the problems bedevilling the society.

Ogbuku said that partnering with universities in academic research will make it possible to produce life-saving vaccines, as well as finding lasting solutions for medical and social problems.

Read Also: ‘Reconstruct Niger Delta’s image for democratic dividends’

The Management also held a meeting with contractors working for the Commission and called for cooperation from them to resolve issues around the burgeoning debt profile of the Commission.

To find a solution, the NDDC leadership says it is willing to accept solutions that will lead to the reduction of the Commission’s debt profile.

As part of the measures taken to address the challenges posed by a huge debt profile, the Commission started reviewing all disilting contracts before payments were made.

Today, the NDDC has sufficiently watered the grounds for public, private partnerships to flourish alongside contributions from stakeholders to bring about economic prosperity, as well as ensure social and political stability in the Niger Delta region.

According to Ogbuku, the NDDC is assuming its rightful position as a vehicle to drive the socio-economic development of Nigeria’s oil-rich region.

A group, Coalition of Ex-Agitators of Niger Delta (CEND), has apologised to the Managing Director of the Niger Delta Development Commission(NDDC) Dr Samuel Ogbuku over a five-day ultimatum to vacate the agency or face their wrath. 

They withdrew the threat, saying it was hasty and not intended to ridicule the hard-earned reputation of Ogbuku. 

A statement jointly signed by the national coordinator chief Gershom M Gbobo and the spokesman Mr Ellington Bakumor of the coalition apologised for the stance. 

They acknowledged Ogbuku has made a lot of sacrifices for the region and promised to support his drive to develop the oil -rich States. 

The ex-agitators thanked him for graciously forgiving them, pointing out he has proven himself as a true, listening father. 

According to them: “We are glad to inform you that the Nddc boss Dr Samuel Ogbuku hold no ill feelings towards the ex-agitators and as a man of his words has pledged that the commission will sponsor the training of Niger Delta youths and has also rolled out different empowerment programs for the region.

Read Also: Bayelsa elders to NDDC: tackle flood

“He has also promised to partner with the Amnesty office to ensure ex-agitators are properly reintegrated to society through entrepreneurship empowerment and other programmes. 

“We the coalition of ex-agitators of Niger delta, is hereby appealing to youths of the region to sheath their sword and give the Dr Samuel Ogbuku led NDDC board administration their support and assistance to actualise the set targets, for the development of the area and human capacity building, this is no longer the time to pull down our own. 

“We as a coalition will from henceforth support and give the necessary assistance to your administration.”

• By, Okungbowa Aiwerie, Asaba 

No fewer than 300 youths from Delta State attended a career/ leadership mentorship  programme by industry leaders.

The event ,which is a collaboration between Foundation for Partnership Initiatives In the Niger Delta (PIND) and Young Professional (YP) Asaba, was held in Asaba, Delta Capital.

The one day event had young university graduates within the 30 years age bracket mentored by lawyers, accountants, medical doctors and the members of the business class.

Chief Executive Officer, Unboxed and Convener, Young Professional (YP) Asaba, Mr. Wale Adenuga, in an interview, said the event is a career mentoring programme that provided participants with opportunity to connect with industry leaders.

According to him, the programme would afford  young people the opportunity to gain insights, ask questions and connect with mentors from different areas of human endeavour.

Adenuga said the mentoring programme which started since 2015 has berthed in different cities including Lagos, Calabar and Asaba.

He said over 65% of youths participating in the event in Delta state are interested in digital media technology, stressing that business leaders who have distinguished themselves have been selected to be mentors at the occasion.

Adenuga stressed that the event was a mentoring and not an empowering event that offers starter packs to participants.

He said insights gained by mentees at such occasions have  transformed the lives of many mentees.

Patrick Ekpe, Youths Employment Pathways Project (PIND), said PIND is a non profit organization working within the Niger Delta region to impact on economic development and peace building.

Ekpe noted that PIND has been collaborating with Young Professional as a career mentorship programme to help support young persons build their skills within the region.

He said that PIND’s youth employment programme (YEP) is to ensure that all skills that are market relevant including ICT, Building Construction and Renewable Energy in the Niger Delta are captured.

Executive Director PIND, Tunji Idowu, expressed happiness at the youths who according to him, “turned up early and in huge numbers” to participate at the event.

He said despite the negatives associated with youths of the Niger Delta region, “every year, we have been able to prove that if we invest in young people, they can rise up to the occasion if we channel their (youths) energies correctly.”

Tunji went on, “About 300 youths showed up on time,showed up prepared and the level of engagements with their mentees.”

Read Also: ‘Reconstruct Niger Delta’s image for democratic dividends’

On funding for entrepreneurs, Mr Idowu maintained that funding is available from multiple sources including equity and loans, adding that only efficiently run businesses are eligible.

He said PIND had trained and built the capacity of over six thousand youths in PIND’s youth employment programme (YEP) with a 95% success rate.

Idowu noted that PIND did not give starter packs but rather engaged participants in a “challenge fund” that requires them to pitch their business ideas.

Chuks Ofulue, Advocacy Manager (PIND) the organisation works solely with partners, adding that PIND through its YEP scheme have collaborated with the Delta state wealth creation scheme since 2017.

The highpoint of the occasion was the pitching of business ideas by four selected participants. 

Miss Chinwe Unique Abujai and Mr Solomon Chigozie emerged winners carting home the sum of N125,000 each.

A Civil Society group, Delta State Comrade Assembly (DSCA) has joined the league of groups asking former Delta Governor Senator Ifeanyi Okowa to account for over N200bn education funds received under his administration.

The group, in a statement, gave the former Governor and the successor Sheriff Oborevwori, a 14-day ultimatum to disclose to Deltans how the said N200bn was spent on projects across the state.

DSCA, in the statement by its Chairman, Comrade Emmanuel Ogbebor also commended Socio-Economic Rights and Accountability Project (SERAP) for taking up the case and exposing alleged corruption in the Okowa-led government.

The Federal High Court sitting in Lagos has ordered the Delta State Government to disclose details of how over N200bn in education funds was spent under the administration of Ifeanyi Okowa.

The funds were collected by Okowa’s government from the Universal Basic Education Commission (UBEC) between 2015 and 2019.

On July 17, Daniel Osiagor, the presiding judge delivered the ruling, following a freedom of information (FIO) suit marked FHC/L/CS/803/2019 filed by the Socio-Economic Rights and Accountability Project (SERAP).

SERAP had asked Okowa’s government in 2019 to account for the spending of the UBEC funds but his administration declined at the time.

The anti-corruption group subsequently filed an FIO lawsuit, among other things, seeking to compel the Delta government to “explain the disparity between budgetary allocations to primary education and the reality that several of the 1,124 primary schools across the state are in shambles, and with very poor teaching facilities”.

In the judgment, the court ordered Sheriff Oborevwori, Governor of Delta, to “disclose details of budgetary allocations and actual spending by the Okowa government between 2015 and 2019, including specific projects carried out to improve primary education in Delta state, and the locations of such projects.”

Read Also: ‘Reconstruct Niger Delta’s image for democratic dividends’

Comrade Ogbebor, while applauding SERAP for helping to expose corruption in Delta State, tasked Senator Okowa to come down from his high horse and explain to Deltans what he did with over #200b education fund or they will mobilize Deltans to protest and occupy Government House Asaba until their request is attended to.

According to DSCA: “SERAP petition has proven to all that the Okowa-led administration in Delta State was characterized with monumental corruption, This has always been our position and it is left for Okowa and Oborevwori to tell Deltans how over #200b of their money was spent.

“We the members of Delta State Comrade Assembly by this statement give Senator Okowa and his stooge to account for the said #200b within 14 days, if not we will have no other option but to mobilize Deltans to occupy Delta Government House until our request is met.

“We are not going to accept the very weak and laughable explanation from his spine doctor that Delta did not get up to #200b from UBEC without telling how much the state got under Okowa and what it was for.

“Let’s assume, without conceding that Governor Okowa didn’t get up to #200b, is it not proper that he tell Delta how much he got, or is Senator hiding something?

“We, therefore, called on Deltans of goodwill to come out there and put pressure on the current governor to give us an account according to available records, anything short of this is unacceptable to Deltans.”

Former Delta Commissioner of Finance and prominent leader of the APC in Delta State, Olorogun Bernard Okumagba has commended President Bola Tinubu for his timely national broadcast in which he not only allayed the fears of Nigerians but also laid out a robust plan of actions to re-boot the economy and make lives more meaningful for the majority of Nigerians.

In his first national broadcast to address the current economic challenges titled: “After darkness comes the glorious dawn,” Tinubu highlighted the reasons for the policy measures his government has taken so far to combat the economic challenges the nation has long faced, which according to him is to “reform the economy for the long-term good by fighting the major imbalances that had plagued our economy” by ending fuel subsidy and the preferential exchange rate system.

In a statement, Olorogun Okumagba applauded President Tinubu for re-affirming his commitment to “help and not hurt the people and nation,” by rolling out measures like utilising N75 billion between July 2023 and March 2024 to fund 75 enterprises at 9% per annum; a commitment to spend N125 billion to energise micro, small and medium enterprises, out of which N50 billion will be given to one million nano businesses between July 2023 and march 2024 as conditional grants, and firm commitment for an upward review of salaries of workers, amongst other far-reaching measures.

According to Okumagba, by keeping true to his promise to address the nation’s economic problems, Tinubu is well on the path to “remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty. 

“His well-thought out national broadcast also reinforces the President’s remarkable focus on growing the economy and tackling multi-dimensional poverty which would boost Micro, Small and Medium Enterprises (MSMEs), and thereby create a robust middle class that will drive our country’s economic rebound.” 

These will be achieved through additional measures announced by President Tinubu which include his directive for the release of over 200,000 metric tonnes of grains to families in the 36 States and the Federal Capital Territory, Abuja; and the President’s approval to remove all restrictions on the Students’ Loan, making it available to any student or household in need.

Part of the programme is also to roll out buses across the states and local governments for mass transit at a much more affordable rate with a provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses. According to the President these buses will be shared to major transportation companies in the states, using the intensity of travel per capital. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.

Read Also: Okumagba hails Tinubu for ‘inclusive’ ministerial list

Other commendable initiatives as announced by President Tinubu in his national broadcast include the plan to support cultivation of 500,000 hectares of farmland and all-year-round farming practice. The President further specified that N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows – N50 billion for cultivating 150,000 hectares of rice; N50 billion for cultivating 150,000 hectares of maize; N50 billion for cultivating 100,000 hectares of wheat; and N50 billion for cultivating 100,000 hectares of cassava

The former Commissioner of Finance recalled that earlier in the month of July, President Tinubu also took the bold initiative to fast track the re-boot of the nation’s economy for the benefit of all Nigerians by reducing the tax burden on Nigerians and businesses effected through the signing of four Executive Orders deferring and suspending the commencement of certain taxes paid by individuals and companies in the country to ensure the achievement of the desired tax law reforms, harmonization of taxes and revenue administration, all of which will boost investor confidence.

Okumagba  applauded President Tinubu for his resolve to steer the economy in the right direction, stating further that the work is just beginning and all stakeholders within the private and public sectors must be ready to support the administration’s effort through effective collaboration, hard work and sacrifice. According to Olorogun Okumagba, “we must all stand ready to make our dear nation great again to enable it occupy its justified place amongst its peers in the comity of nations in the coming years.”

• By Pius Okwuanya

Sometime in the recent past, I was having an interesting chat with a friend that is working with The World Bank when he said something sublime rather offhandedly. Encapsulating the conundrum that has stifled impact and derailed both the success of cash transfer programs and the financial inclusion efforts in Nigeria; he stated that ‘there is actually a fundamental difference between driving a successful cash transfer program and driving financial inclusion.’

This distinction needed to be made especially in developing countries like Nigeria where there may not be clarity as to what the Government or the Humanitarian organization is prioritizing or should be prioritizing. On the one hand, Social and Humanitarian cash transfers may be geared towards responding to endemic poverty, increasing household consumption, improving nutrition, responding to shocks; yet on the other hand, there is that niggling doubt that for the investment outlay involved in such projects, financial inclusion should be an expedient by-product of these cash transfer programs. The thought is not far-fetched, one of the ways of deepening the gains of these cash transfer programs is by ensuring that the beneficiaries are financially included.

It was expected that a financially included beneficiary would have some financial literacy and particularly digital payments literacy which would introduce the beneficiaries to the broader formal financial services landscape with its attendant products and services like micro-credit, micro-insurance and micro-savings. Scholars have argued that ownership of bank account as a measure of financial inclusion is not a sufficient metric and would hide more than it reveals, especially when such accounts was opened at the instance of a receiving a social protection or humanitarian benefits. These accounts will become inactive and eventually dormant at the end of the program.

There are already evidence generated across certain programs one of which stated that the targeted beneficiaries often relied upon proxies to access their payments. In one program, beneficiaries were observed to have sometimes given their debit cards to proxies, who are often already banked and could navigate the ‘complexities’ of the digital payments ecosystem so that these individuals can help them access their benefits. Of course, the risk in this shortcut is immediately obvious. Unwittingly, middlemen have been created by the financial inclusion process and sometimes, beneficiaries may be short-changed or outrightly defrauded as they compensate the middlemen.

In fact, research has pointedly shown that delivering cash transfers through mobile money and other digitized mechanisms does not automatically lead to financial inclusion and beneficiaries often resort to their more familiar informal systems.

Read Also: Cash surge into economy forces interest rate hike

Other times, Financial Inclusion could lead to lethargy in program delivery as stakeholders spend a lot of time discussing how best to integrate off-grid beneficiaries into the formal financial system within existing regulations and with minimum disruptions to their lifestyle. For instance, in Nigeria, a good percentage of the financially excluded do not have mobile phones and valid means of identification, basics of opening and running a bank account in Nigeria.

Supporting the National Cash Transfer Office, an office within the National Ministry of Humanitarian Affairs and Social Development, it was discovered that in the field, beneficiaries of social cash transfers may not have mobile phones and it is not strange to find a community of 50 beneficiaries having less than 10 phone numbers.

Furthermore, stakeholders will also need to deal with the paucity of digital payments infrastructures especially in rural settings like bank branches, agent network, mobile network and even electricity.

Therefore, financial inclusion if pursued without sufficient clarity could be a loaded gun, and morph into a cure that is worse than the disease.

However, it would be unwise to overlook the importance of financial inclusion in delivering sustainability of cash transfer programs. The availability of identity data, some form of benefits for the beneficiaries and remuneration for Payments Service Providers who often earn an average of 3% of disbursed value, creates a kind of subsidy, incentivizing Banks and Mobile Money Operators to invest in pushing products and resources towards meeting what data has shown as an obvious need, the financial inclusion of the unbanked segments. According to Enhancing Financial Innovation and Access (EFINA) Access to Finance publication, there are still over 35% of the population who do not have bank accounts and have remained unserved by the formal financial services sector

No time has this challenge and need been more palpable than the recent currency redesign and the attendant cashless policy of the Central Bank of Nigeria, revealing the extensive dependence of Nigerians on cash and its tyrannical reign. Long queues at the bank branches, ATMs and even some POS Agent locations showed the need to drive digital payments adoption through financial inclusion especially as several stakeholders have commented that the brunt of the currency redesign and cashless policy would be borne by the financially excluded.

What is then the best way to drive financial inclusion through social or humanitarian cash transfer programs? Having worked with and supported both social and humanitarian cash transfer programs across thirty-six states in Nigeria as a Project Manager, Product Manager and Digital Payments specialist, I understand the critical nature of this conversation and have a few thoughts on how stakeholders can start the conversation of driving financial inclusion

First, it will be important to collect program beneficiaries’ data with financial inclusion in mind. At this point, it is advisable to refer to extant regulations and consult payments service providers to understand account opening and management requirements. It is equally necessary that you elicit the consent of beneficiaries if you intend to use the data to open accounts for them. Best practice would be to give the beneficiaries the capacity to choose from an array of licensed and regulated providers.

Secondly, there is need to understand the FinTech Product options that will drive financial inclusion targets and objectives. In Nigeria, financial inclusion has sometimes been interpreted to absolutely mean the ownership of Commercial Bank Accounts which sometimes may not be the right products to drive it. Mobile Money, Agent Banking and Payments Service Banking and even Microfinance Banks in Nigeria are all viable and more flexible for driving financial inclusion. Quick Response Codes, Near Field Communication technologies, USSD and Debit cards are all useful technology options duly regulated by the Central Bank.

Furthermore, it is best to set realistic financial inclusion targets informed by mapping and relevant data. Program beneficiaries in urban and peri-urban are usually more equipped and receptible to digital payments than those in rural areas. The rate of mobile phone ownership, mobile network coverage and availability of banking services infrastructure decreases as you move away from urban areas and deeper into rural locations.

As the targets have been set, cherry-pick the low hanging fruits, deploy digital payments there and begin to learn, while maintaining the distinction between cash transfer objectives and financial inclusion objectives. Sometimes, both may be working at cross-purposes especially if your objectives of delivering the benefits to the beneficiaries at the last mile is being hampered by the financial inclusion drive. Financial inclusion should solve a problem, not create one.

Stakeholders must also invest in sensitization and digital payments literacy campaigns. Beneficiary readiness to accept digital payments and banking must be a major focus. Asking program beneficiaries to adopt digital payments tools which would lead to financial inclusion is a change issue and change has to be appropriately managed.

There is also the need to establish an issue management and dispute resolution framework integrated between the cash transfer program and the fintech systems that is being leveraged for the program. This may mean that the Payments Service Providers need to become a part of the program design. If issues which would definitely arise are not resolved expeditiously for and by the beneficiaries who are new and sometimes ‘involuntary’ adopters of digital payments mechanisms, the case for the use digital payments may be weakened.

Finally, there is a need to have a Monitoring and Evaluation framework that will ensure that the financial inclusion drive is delivering sustainable impact and is not hindering beneficiary access. There is no use having a bank account or a debit card that a beneficiary cannot use or even having an account number that they will discard at the end of the social or humanitarian cash transfer program.

Pius Okwuanya is a Digital Payments Specialist and comments mostly on the potentials of Fintech to drive financial inclusion.