Efemena Ogie, the Head of Partnership at Moniepoint Inc., has shed light on the potential for Nigeria to utilize the National Identification Number (NIN) database, which currently contains information for 102.39 million Nigerians, to expand financial inclusion. Speaking at a Fintech Forum organized by the Nigeria Information Technology Reporters Association (NITRA) in Lagos, Ogie highlighted the importance of increasing access to financial services for more Nigerians.
The Challenge of Financial Inclusion
Ogie pointed out that as of October 9, 2023, only 58.9 million Nigerians have Bank Verification Numbers (BVNs), indicating that a significant portion of the population remains financially excluded. With Nigeria’s population estimated at around 230 million, this data implies that merely about 25% of the population has access to formal banking services.
Leveraging the NIN Database
Ogie proposed a solution to this challenge by suggesting that the NIN database managed by the National Identity Management Commission (NIMC) could be harnessed to create additional BVNs for Nigerians, allowing them to access financial services more easily.
He explained how this process would work, stating: “NIMC, as of August, has over 102 million Nigerians registered for the NIN, and in the banking sector, we have just about half of that number with BVN. Now, since NIMC already has this data, what the custodian of the BVN, which is NIBSS, needs to do is to develop an API that will connect to NIMC in such a way that the NIMC data is replicated with NIBSS.”
He further elaborated, “It means that if you have NIN and you don’t have BVN, I am able to generate BVN for you using your NIN. Now, there is a data privacy aspect to this. So, for you to have access to that BVN, all you need to do is to dial a code, and that serves as consent. Once you give the consent, you have your BVN.”
Data Harmonization for Greater Efficiency
Ogie stressed the importance of data harmonization to address the challenges of fragmented data managed by different government agencies. He argued that multiple databases create difficulties for Nigerians in establishing their identities effectively.
He explained, “So, you have the BVN, you have NIN, you have the Driver’s Licence database, passport, and all that. If I go to get my driver’s license now, they will capture my biometrics. If I want a passport, they will capture my biometrics, NIN, and BVN, the same thing. Now, I think we need to start to think about harmonizing this data. When we have a harmonized data system or database integrated, it will go a long way.”
Drawing a parallel with India, where Aadhaar, a system similar to BVN, has captured almost the entire population, Ogie emphasized the need for a more comprehensive approach to data integration and identity management.
In India, approximately 95% of the 1.4 billion population has Aadhaar cards, showcasing the success of such a unified identity system.
Ogie’s insights highlight the potential for Nigeria to enhance financial inclusion by leveraging the existing NIN database and adopting a more streamlined and efficient approach to data management.
