Yemisi Izuora
The Central Bank of Nigeria, CBN, has disclosed that the implementation of the Financial System Strategy (FSS) 2020 has prompted the Nigerian insurance gap to reduce from 94 per cent gap in 2007 to 40 per cent as at the end of 2016 as well as an advanced payment system that is being emulated by other countries on the continent.
Speaking at a seminar organized by the Central Bank of Nigeria for financial journalists in Sokoto, CBN Director FSS 2020, Muhammed Suleiman said with three years to year 2020, the aims of the bison is being achieved.
He said, through the implementation of the policy, there has been increase use of electronic payment in the country.
Last year, the volume of transactions that passed through electronic channels in the Nigerian banking industry grew by 90.3 per cent from N27.23 trillion in 2012 to N51.8 trillion according to data issued by the apex bank, he said.
Also, head of Insurance Sector of FSS Christopher Muo in his presentation said the impact of the policy on the insurance sector has been immense with improved participation in the sector.
According to him, the insurance gap as far back as 2007 was 94 per cent.
“Since 2008 till now, which is about 8 years, we are now told that we have bridged 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.”
On his part, Head, Financial Markets, FSS 2020, Dr. Charles Ohamara, noted that the policy has been used for 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 furthered that there has been an introduction of SWIFT Sanction screening to improve transparency of international payments of the point of origination, while guidelines for offshore banking operations has been issued.
Also there has been the deployment of new RTGS and Scriptless Securities Settlement System- S4, introduction of Agent Banking and implementation of Bank Verification Number to promote and strengthen Know Your Customer.