Enhancing Financial Innovation & Access (EFInA) has committed $2million to expand financial services to the un-banked and under-banked segments of the populace.
EFInA, a financial sector development organisation that promotes financial inclusion in Nigeria is funded by the UK Government Department for International Development (DFID) and Bill and Melinda Gates Foundation.
The fund was committed as a grant to Paga, a financial services platform to develop and deliver low cost financial products through Paga’s nationwide agent network; thus, facilitating the emergence of an all-inclusive and growth-promoting financial system in the country.
Paga enables customers transfer money via mobile phones, Internet-connected devices, or any of agents in Paga’s nationwide network of the agents.
According to EFInA, Paga won the grant, following a highly-competitive and rigorous application process spanning several months, including thorough checks on both the status of the business and viability of its long-term potential.
Modupe Ladipo, chief executive officer EFInA said: “Paga was selected because of the clarity of its initiatives to enhance financial sector development through its agent network.
“There are 39 million Nigerian adults who have no access to financial services. Finding innovative ways of reaching out to this market is a challenge. At EFInA, our primary mandate is financial inclusion and we believe Paga can contribute to this goal by delivering affordable financial services through its platform.”
Tayo Oviosu, chief executive officer of Paga said the company would partner relevant organisations in the banking and insurance sectors to achieve this goal.
“Our goal is to bring financial services to over 40million Nigerians by 2015. With this grant, our objectives will be even more achievable. As Paga can link to different types of financial providers, including banks and microfinance institutions, we will be working with partners such as Diamond Bank; Nigeria’s largest microfinance Institution, LAPO; ADIC and GTAssur, to develop and deliver low cost financial services to all Nigerians through our agent network.
“The EFInA grant will fund our consumer education campaign so that more people understand what financial products are better suited to them,” he said.