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NIMC, Identity Management Crisis in Nigeria and the Way Forward

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By Gbenga Odegbami

Identity management is important and cannot be overemphasized. It is so strategic that almost all the past government administrations in Nigeria since 1976 have considered it a critical space for development.

Recently, the Presidency, via the Office of the Secretary to the Government of the Federation (OSGF), inaugurated a Steering Committee for the Nigeria Digital Identity, to develop the Ecosystem Project to ensure that issues of identity management stay at the forefront and ensure that the government achieves its objectives.

Considering that my company, Youverify, is a key player in the Nigerian identity management ecosystem, some stakeholders have repeatedly sought my opinion on developments in this industry. Here are my thoughts on how Nigeria arrived at where we are presently, lessons learned from history and steps to achieve the nation’s identity management objectives.

So far, we have spent some much, with little results

The World Bank has estimates that Nigeria is on the track to spend about $4.3b on identification and addressing programmes. This figure seems realistic when you consider the fact that Nigeria spends an average of over $500m on each voter registration cycle before an election.

To ensure that the thrust of this article is not missed, I will refrain from focusing on the two major factors that affect every public initiative in Nigeria;  the first being corruption (the bogeyman of all problems in Nigeria, according to popular perception), while the second is lack of continuity after the change of regime.

So let’s examine the issues that really count.

Citizens’ identity management is beyond the BVN

A review of the Biometric Verification Number (BVN) exercise conducted within 18 months less that the time frame prescribed by the Banker’s Committee (lead by the CBN) agreed to shows it was successful a successful initiative. However, some stakeholders believe that it is focused only on the financially included, thus, excluding more than 60% of the population. For this reason, the BVN cannot be used for voter registration or economic intervention in Nigeria i.e. National Social Register (NSR).

Nevertheless, we cannot ignore the gains from adopting the BVN, especially within the Fintech space and the resultant economic value and security we enjoy today. I believe that if we galvanize the identity system to cover for almost all Nigerians, the economic impact will be widespread.

NIMC Has its Challenges

As human in a democratic society, we are quick to blame the government agencies for failed systems without really considering the requirements and realities of operating such systems in our polity.

Perhaps you are among those who applied for the National ID 4 years ago and have not received it. Statistically, transformational projects such as a National ID scheme have an average of 30% success rate of meeting their objectives across the globe. Nigeria is not an exception. I have analysed four factors, from my perspective, responsible for the failure of the National ID scheme.

  1. Value to Citizens

The bottom line is ID compliance is largely driven by the perceived value to citizens. For many years, we have repeatedly failed to emphasize this point, and people only wilfully submit to an identification process when they appreciate the benefit or need for them.

For instance, the success attributable to the adoption of the Permanent Voters Card is largely due to the desire of people to vote during elections. Even still, INEC has registered just above 80m Nigerians in 2 years.  For the BVN, you cannot partake in the financial ecosystem without one, therefore you must enrol to participate.

The success of all National identification efforts in other countries is because the citizens are required to use it to access social intervention/ insurance/retirement packages and to file personal income taxes.

In Nigeria, this never existed until the creation of the National Social Investment Office (NSIO) (now Federal Ministry of Humanitarian Affairs). However, this ministry is focused on the vulnerable and poor for now and it therefore excludes some section of the populace.  I believe we don’t have enrolment problem but a value one.

  1. Funding

Like all non-revenue generating agencies, NIMC struggles with obtaining timely funding to achieving its stated objectives. We perpetually run a budget deficit, and the focus seems to be on capital-intensive infrastructure project for the real sector, while other projects, like citizen identification, are neglected and pushed to compete with other the projects designed to provide basic services like food, jobs etc. The balance is grossly uneven and agencies like NIMC are forced to halt or delay in delivering on their objectives.

I doubt if NIMC has gotten $200m combined from inception and they have enrolled more than 40m Nigerians, which is significantly productive based on the data from other climes. As important as NIMC’s mandate is, it has struggled to get the funding it required because we have so many competing priorities.

  1. Silos in Government

Although we have had presidential committee(s) to ensure harmonization of identity management efforts, often such committees stymie the effort on the long run. This issue is not unique to Nigeria. Government agencies led by political appointees and career civil servants naturally protect their empire or try to increase it.

Considering that political powers and organizational influence are at play here, the silos in Nigeria can be as complex as it gets. Even though NIMC operates an open-door policy with other agencies, it takes more than open-door policy to tango in government even with direct presidential oversight.

  1. Technology appropriateness

The technology deployed for identity biometrics has evolved significantly over the years, making this the process more accessible, efficient and affordable. NIMC ought to stay updated with developments in technology. Considerable time is required to identify the technology and complete the procurement process, which is be hampered by government bureaucracies.

I will illustrate this malaise When the project commenced execution, there were cheaper alternatives in the market. For instance, the NIMC smart card was ahead of the game and probably the most forward-thinking ID approach. Today, the tech space has moved on to digital identity apps on smartphones and blockchain-based platforms.

In the same vein, not too long ago, you needed: a physical location with an agent, a digital camera with specific background, a desktop computer, 4-4-2 fingerprint scanner, a printer, electrical power and internet connection, to conduct an enrolment exercise. Presently, these processes can be replaced with an app on a smartphone and executed at the fraction of the cost and with the same or higher data quality.

Comparison with the BVN Exercise

Let us consider the challenges listed for NIMC ID-ing in comparison to the BVN project:

  1. The value proposition and narrative for the BVN exercise were easy and simple for all citizens to understand. Furthermore, the use and access of bank accounts was tied to the BVN thus making it mandatory.
  2. The BVN was well funded from commencement and it is still funded through a sustainable model that doesn’t require government grants.
  3. It does not have to deal with government silos because executed within financial industry where government plays a regulatory function mostly.
  4. The timeline between planning and execution was very short so technological changes in the landscape did not affect the execution of the project.

The INEC registration exercise enjoyed similar circumstances with the BVN.

Speaking objectively, the OSGF and NIMC comprise of erudite individuals with relevant experience, who have consistently tried to address these factors within the legal and procedural frameworks available to them.

Suggestions on the way forward

Based on the existing roadmap, NIMC secured funding approval from the World Bank, as part of Africa ID4D, to accelerate enrolment and create the infrastructure to achieve becoming the foundational IDs for all other programs. The cost is pegged at $4-7 per person. For NIN to be a viable foundational ID, enrolment must be done for at least 51% of the population.

Considering that our population is forecasted to grow exponentially to 450m people by 2050, NIMC needs more funds to successfully deliver on its mandate. Based on World Bank estimates, it  should cost between $400m – $700m to complete. Assuming funding issues are resolved, we have 3 more factors to consider.

The first and arguably most unpredictable factor is the risk associated with change of power, post-election. Every new administration seeks to change the social order, whether or not such change is necessary or relevant. This disrupts the execution of time bound deliverables. I recommend that shorter time frames be implemented to ensure NIMC closes the project at least 10 months before the next election.

The second factor is creating a value-rhetoric among the citizens. The existing approach is to basically forces people to use NIN by making the certain agencies to require it before rendering services. While this is a brilliant approach by NIMC, we will probably not capture 50% of Nigerians this way because the majority of the citizenry do not interact with these agencies requiring the national ID.

We need a more aggressive and all-encompassing social net and rhetoric for all Nigerians to help prepare Nigerians for the realities of Nigeria post-identification, and to  accelerate universal ID enrolment. In addition, social net helps government agencies at levels increase tax coverage and compliance, thereby increasing revenue.

The third factor is the influence of government silos. The bid to solve this problem was the reason NIMC has been domiciled under the presidency, and not the ministry of interior. That was why we have had data harmonization committees and the reason the president has formed the new digital identity committee. Our best bet is to understand their challenges, support the incumbent process and hopes we make sizable progress before a new administration comes in 2023.

Is a Private Sector Partnership the Answer?

Stated plainly, yes! The final factor and most crucial factor in expediting this exercise is understanding technology appropriateness  and responding to the changes by implementing suitable and relevant technology to ID citizens. It is not hidden that suitability and speed are extremely important to the success completion of this exercise, thus the best approach is to leverage on the private sector.

INEC used an overwhelming amount of its funding and private sector ingenuity to achieve their enrolment numbers. CBN and Bankers’ committee used the technological advancements and financial industry structure and efficiency to make BVN compliance a success.

NIMC and OSGF need to engage with the private sector to work towards achieving the mandate. Presently, there is a thriving, robust and internationally-recognized identity industry that can mitigate against the issues faced in our ID projects.

For example, the traditional industry watchers typically focus on fingerprint standards and operational environment required for enrolment, i.e. electrical power, physical space, training etc. Today’s leading identity players do not need a computer, physical space, electrical power at the location, or a dedicated device for fingerprinting to achieve the desired quality.

Moore’s law, artificial intelligence (AI) and other disruptive technologies have ensured processes like identity enrolment keep improving and getting more affordable and accessible to all with little effort. Locally, we have indigenous platforms like Youverify that enjoy a reputation for having tested experience in executing efficient and fast ID processes, using the best and most current available technology.

The present technology employed in the identification industry results in a reduction in the need for space, internet connectivity and power across the nation. These will also create new opportunities for self-enrolment and enable anyone with a smartphone to become an enrolment agent. That’s millions of jobs in the offing!

If we are worried about the possibilities of impersonation, AI will help solve that concern. AI has created so many possibilities in the imaging space that can help uniquely identify millions of people. The best part is that the chances for human errors are largely minimized.

Technology will also foster global usability especially now that the government is pushing for e-services as an aftermath of the COVID-19 pandemic. Nigeria does have a huge talent base, a ready ecosystem, data privacy framework and digital economy focus to drive this pending transformation. The big question is, are we willing to align our ID structures to these new realities?

If we are willing, NIN can drive a new national digital economy in the same manner BVN drove a digital revolution in the banking space.

The question is when.

 

Dr. Gbenga Odegbami is a co-founder and the CEO at Youverify Inc. Youverify is a Lagos-based digital identity firm that facilitates the automation due diligence and compliance by using data-driven initiatives and related-technology. 


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NIA Questions Legality of Reps’ Financial Probe

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The Nigerian Insurers Association has urged the House Committee on Capital Market and Institutions to respect the constitutional separation of powers as it carries out a probe on over 20 insurance firms.

In a statement on Tuesday night, the Director General/Chief Executive Officer of NIA, Mrs Bola Odukale, said the decision of NIA and the affected firms to approach the court was to seek clarity on the constitutional limits of the House Committee’s probe.

It would be recalled that the House of Representatives on Monday is investigating no fewer than 25 insurance companies operating in the country for various financial infractions spanning financial reporting, claims settlement, premium remittance, and issuance of policies.

The Chairman, House Sub-Committee on Capital Market and Institutions, Kwamoti Laori, during a meeting with the management of the insurance companies at the National Assembly Complex in Abuja, said the meeting was convened following the receipt of a petition on infractions by the insurance companies.

In the statement, Odukale said, “The Association wishes to state unequivocally that all actions taken by the NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice by its Solicitors. It was on the firm instruction of legal counsel that recourse was made to the courts.

“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention in order to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of law.

“The Court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, by constitutional design, is the exclusive province of statutory regulators, such as the National Insurance Commission, Securities and Exchange Commission, Nigerian Exchange, Financial Reporting Council, Nigeria Data Protection Commission, and the National Information Technology Development Agency.

“This raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy.”

Odukale maintained that the NIA was committed to lawful and constructive engagement with all arms of government, provided that such engagement respects the autonomy of statutory regulators and the boundaries established by the Constitution.

“The NIA will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity,” Odukale concluded.

17 of the companies that went to court were represented by their lawyer, Mr Abimbola Kayode, at the meeting with the committee.


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Horn of Africa Leaders Seek Enhanced Digital Integration for Increased Regional Growth

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Finance ministers and development partners from the Horn of Africa have called for enhanced digital integration to boost trade, drive economic growth and promote regional stability during the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI).

Held in Nairobi, on July 14, the meeting was co-chaired by the African Development Bank’s Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo and Somalia’s Minister of Finance, Bihi Iman Egeh. Discussions underscored the critical role of digital integration in reducing trade barriers, boosting government service delivery and creating employment — particularly for the region’s youth.

“Digital technologies are shaping today’s economy and tomorrow’s industries. By embedding these technologies into our programs, we can not only improve inclusion but also leapfrog outdated development models,” said Nwabufo.

She called for digital integration a “central enabler” in each of the Horn of Africa Initiative’s pillars – trade, infrastructure, resilience, and human capital,

Learning through experience

Drawing from global and regional success stories, speakers highlighted the transformative potential of technology-led development. The ministers pointed to the Philippines as a strong example, where ICT has generated millions of jobs in business process outsourcing. Similarly, Kenya’s fintech innovation—especially the success of M-PESA—was cited as a model for scaling digital financial services across the region.

Participants urged governments to proactively foster digital ecosystems by capitalizing on the demographic dividend, identifying infrastructure upgrades, tighter regulatory reforms, and digital skills trainings as priorities to enable broader participation in the digital economy.

Minister Egeh reiterated the need for more coordinated regional efforts to create the enabling environment required for accelerated digital integration and expansion. He referenced the HoAI Digital Policy Matrix, adopted in 2023 which provides a blueprint on how to address key obstacles to achieving effective digital integration across the region.

Barack Makokha, Kenya’s Cabinet Secretary for National Treasury, underscored the importance of regionally-aligned public private partnerships and advocated for blended financing to reduce investment risk and expand digital access in underserved areas.

World Bank Vice President for Eastern and Southern Africa, Ndiame Diop, called for a comprehensive multi-pronged approach, combining cross-border coordination, large-scale financing, robust policy support, and digital infrastructure investments. He pointed out that such measures could transform digital integration into, “a powerful engine of economic transformation” for the Horn of Africa—ensuring no one is left behind in the digital era.

The meeting concluded with a shared recognition that sustained political will and the determination to implement a multifaceted approach are essential to unlocking the region’s economic potential and driving long-term growth.

The event also welcomed observers from the East African Community, Agence française de développement, and Shelter Afrique, reflecting strong regional and international backing for the HoAI in the development community.


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CSCS Inaugurates Custodian Portal to Enhance Digital Access, Operational Efficiency

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Central Securities Clearing System Plc (CSCS), Nigeria’s capital market infrastructure provider, has launched its Custodian Portal, a user-centric digital solution designed to optimise custodian operations through intuitive, secure and efficient features.

Haruna Jalo-Waziri, Chief Executive Officer (CEO), CSCS, announced this in a statement on Monday.

The CSCS is a Public Limited Company with a diversified shareholder base, which serves as the Central Securities Depository for the Nigerian Capital Market.

It serves as the Central Depository for Equities, Commercial Papers, Corporate Bonds, Sub-National Bonds, certain Sovereign Bonds like the FGN Sukuk and the FGN Savings Bond, Equity-traded Funds, Real Estate Investment Trusts, Mutual funds and Commodities.

Jalo-Waziri said that the custodian portal offered a streamlined experience for market participants with powerful tools that facilitate comprehensive portfolio and trade management, document tracking, share transfer operations, client symbol search, and real-time access to vital data.

He explained that the portal, designed to operate through a flexible subscription-based model, empowered users to manage their records effortlessly and securely through convenient payment channels such as GTPay and Paystack.

According to him, “Digital transformation remains at the core of our strategy to enhance the efficiency, transparency and accessibility of Nigeria’s capital market services.

“The custodian portal is a significant leap in that direction, offering custodians a centralised platform to manage critical processes in real-time.

“We are excited about the value this innovation brings to our stakeholders, and we will continue to evolve the platform in line with users’ needs and industry trends.”

The CEO also explained that the portal was designed with user experience in mind with feature tools like portfolio viewing and downloads in PDF or Excel format.

He further said that it also featured tracking of stock movements across date ranges, inbox messaging and request tracking, as well as robust user management capabilities including role assignment and status tracking.

Similarly, the Divisional Head, Business Technology and Digital Innovation, CSCS Plc, Tobe Nnadozie, said that the portal aligned with CSCS’s drive to automate the market.

“In addition to the normal features, the platform is a part of an omnichannel platform for custodians, and includes API services.

“It also connects to the market-wide workflow, which CSCS has built to ensure secured communication and approvals across all major stakeholders in the market.

“The platform is well secured with best-of-breed cybersecurity solutions and our SOC,” he said.

The Custodian Portal reinforces CSCS’s commitment to leveraging technology to streamline back-office functions and support a more agile, data-driven capital market ecosystem.

All custodians in the Nigerian capital market have now been successfully on-boarded on the Custodian Portal, marking a significant milestone in CSCS’s ongoing drive to enhance collaboration, standardise operational processes, and promote digital adoption across the market.


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