FederalGovernment and a Bangladesh-based infrastructure giant, Infrastructure Investment Facilitation Company, IIFC, have signed a contract for the provision of advisory services to the financial inclusion project of Nigerian Postal Services, NIPOST, in Abuja.The tripartite project is aimed at reducing the number of financially-excluded Nigerians in the Central Bankof Nigeria, CBN’s financial inclusion plan under the ongoing revival and transformation of the NIPOST by the Ministry of Communications Technology.The NIPOST-CBN financial inclusion project is a multi-agency initiative involving communications ministry and CBN, with NIPOST as project owners and the Bureau of Public Enterprises, BPE,InfrastructureConcessionRegulatory Commission, ICRC, and the Public-Private Partnership, PPP, Department of the Ministry of Finance as stakeholders.ObjectivesSpeaking at the event, the Post Master-General, Mallam Mori Baba, explained that the objective of the project was to utilize the network of post offices across Nigeria to create and improve the access citizens have to financial services. He said the signing of the contract came at a critical time for NIPOST: declining revenue from traditional mail operations occasioned by advancement in digital communications technology, amidst an increasingly competitive and harsh business environment.This, he said, necessitated the re-think by NIPOST to explore new lines of business, including the provision of financial services. Meanwhile, according to a research by Enhancing Financial Innovation and Access, EFInA, four out of every 10 adults in Nigeria have no access whatsoever to financial services. This class of people are said to rely on the cash they get from their trade, employers, families and friends to support all of their activities and do not have access to informal savings groups and cooperatives.According to the report, of the six out of every 10 adult Nigerians that have access to financial services, only about half do so through formal deposit market banks.Minister speaksIn her remarks, Minister of Communication Technology, Dr. Omobola Johnson, said the transaction adviser was selected after a rigorous and transparent procurement process that saw a number of international and domestic consortia expressing interest in supporting the project. She said the signing of the MoU will give the financial advisor authority to manage the second phase of the financial inclusion project, designed to activate and modernize all the post offices around the country and all the postal agencies to become financial hub for ensuring the inclusion of those that are not participating in the banking activities, especially in rural areas.The Minister, who was represented at the occasion by the Permanent Secretary in the Ministry, Dr. Tunji Olaopa, said: “Federal Government believes that this scenario is untenable for the attainment of progress and inclusive development in Nigeria. “This is because people do not live in a static state of poverty; improved income generating opportunities lifts them out of poverty, but social and economic shocks such as serious illness of a household member, death of a relative or household member, theft of goods and failure of business or trade, push them back.”With the MoU signing, IIFC, a Bangladesh-based company will be working with its Nigerian consortium partner, the law firm of Abdulai, Taiwo & Company to complete its assignment.Johnson said: “Completion of the NIPOST-CBN project will result, not only in the selection of a credible partner for NIPOST and creation and management of a successful and sustainable PPP arrangement, the project will make a significant contribution towards the attainment of the nation’s financial inclusion target, particularly in the rural areas. “The government also expects an increase in revenue to NIPOST, which will contribute to the long-term viability of the agency.’’
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