Using e-wallet to bring more people into the financial system

One of the ways that the Nigerian government is trying to get more people especially the farmers into the financial system is by using the electronic wallet system known as e-Wallet.

E-wallet is an electronic device that allows an individual make electronic commerce transaction. This can include purchasing items on-line with a computer or using a Smartphone to make purchases at a store.

Not only can this development help the unbanked in Nigeria, it can help farmers ease the burden of carrying too much cash, hence reducing theft. It could also help small businesses come up.

Executive Director of the Farmers Online Market (FOM) Stephen Maduko explained that when a farmer registers in farmersonlinemarket.com.ng, they would capture all their produce details, harvest periods and expected yields and expected price, then buyers would get all details and contact farmers directly through the mobile phone.

Experts are of the view that the e-Wallet to a great extent has reduced corruption in the distribution of fertilizer while at the same time deepening financial inclusion as many farmers are exposed to making payment online.

This is logical as it has been established by experts that there is a strong correlation between explosion in the use of the Smartphone and increase in the number of people with a bank account. Moreover, Smartphone are ubiquitous.

Since the product (e-Wallet) was introduced by the president Good luck Ebele Jonathan led government few years ago, it has captured 14 million farmers while a total of 30 million farmers are being projected.

The World Bank says it has scaled up the funding support to Nigeria’s electronic wallet system to $150 million for the implementation of the second phase of the agricultural initiative in the country.

It is generally accepted that digital payment can help bolster economic growth and development by reducing poverty among women and rural dwellers.

As per EFinA16 survey conducted in 2012, 34.9 million Nigerians, i.e. 39.7 percent of adult population were excluded from formal financial services. It should be noted that 14 percent of the 1.60 billion Muslim populations are without a bank account.

However, the momentum of the e-Wallet system has waned since the government of President Muhammadu Buhari came to power in 2015. Not much has been heard about the product as industry players yet to grasp the new administration’s road map for Agric.