World Bank’s IFC Enters into a $550,000 Agreement with First Bank Nigeria’s Subsidiary, Firstmonie

Member of the world bank group – IFC – recently signed an advisory services agreement with Firstmonie – a subsidiary of First Bank Nigeria Limited.

Their collaboration seeks to ‘advance mobile financial services and agent banking in order to strengthen the supply of affordable financial servides to low income persons as well as small scale entrepreneurs,’ according to nigeriacommunicationsweek.

At Firstmonie, we are committed to expanding mobile financial services to the under banked and low income communities, stated managing director of Pridar Systems (wholly owned by FirstBank), Mr. Mike Ogbalu, in a press release. With the advisory support from IFC, we hope to achieve our goal of boosting financial inclusion through our product offerings and decrease the population of the unbanked and under-banked in Nigeria, he added.

  • IFC is set to provide Firstmonie with technical assistance in financial modeling, agent management and customer activation, to a value of $550,000, funded by the Bill & Melinda Gates Foundation.
  • Nigeria has a low rate of financial inclusion, with only 43% of the adult population having access to formal financial services.
  • The Central Bank of Nigeria (CBN) issued licenses for mobile money operators in 2010.
  • However, adoption and usage has been slow to take off due to high costs, poor agent network management and low awareness amongst the population.
  • Firstmonie Mobile Money Service enables customers to access financial and other value added services through their mobile phones.

Firstmonie and IFC aim to develop a best practice mobile money operation that will demonstrate the sustainable business case for affordable financial services in one of Africa’s most important economies, commented David Crush, manager, IFC Access to Finance, Sub-Saharan Africa, in the same release. This is a step towards reaching full financial inclusion in Nigeria.