BY CHINYERE OBIORA (LAGOS)
Effective implementation of the Financial System Strategy (FSS) 2020 has greatly aided the Nigerian insurance gap reduction from 94 per cent in 2007 to 40 per cent by 2016 ending.
The FSS applause is even louder against the backdrop that many consider it as the advanced payment system being emulated by some other countries on the African continent.
Central Bank of Nigeria (CBN)’s Director, FSS 2020, Muhammed Suleiman, said with three years to year 2020, the aims of the vison is being achieved, noting that through the implementation of the policy, there has been increase use of electronic payment across the country.
Speaking at the annual seminar organized by CBN for financial Journalists in Sokoto, Suleiman said the apex bank’s data indicate the volume of transactions that passed through electronic channels in the Nigerian banking industry last year grew by 90.3 per cent from N27.23 trillion in 2012 to N51.8 trillion.
According to him, this is aside gains made in deepening the Nigerian bond market; mortgage assets registry linkage; advancement of the payment of dividend at the capital market through e-dividend; collaborated takable and micro insurance.
In another presentation, the Head of Insurance Sector of FSS, Christopher Muo, said the policy impact on the insurance sector has been immense with improved participation in the sector, noting the worrying insurance gap stood at 94 per cent far back year 2007.
“Since 2008 till now, which is about 8 years, we are now told that we have bridge that gap to about 40 percent. That is encouraging because there has been a lot of reforms that are taking place and these are the effects of the FSS 2020. We will keep pressuring the Nigeria Insurance Commission (NAICOM) and telling them this is what to do to get it right”, Muo said.
Also speaking at the event, Head, Financial Markets, FSS 2020, Dr. Charles Ohamara described the policy as effectively promoting the adoption of electronic payments in agriculture, as well as the establishment of working groups to offer opportunities education, hotels of entertainment, consumer bills payments, and government flows, health and transport.
He hinted that SWIFT Sanction screening was introduced to improve transparency of international payments from the origination point, even as guidelines for offshore banking operations were also issued.
Similarly, there has been the deployment of new RTGS and Scriptless Securities Settlement System- S4, introduction of Agent Banking and implementation of Bank Verification Number (BVN) to promote and strengthen Know Your Customer.
FSS 2020 Reduces Insurance Gap by 50 percent
BY CHINYERE OBIORA (LAGOS)