Managing Director and chief executive of Heritage Bank, Mr Ifie Sekibo , has opened up saying even though the Central Bank of Nigeria (CBN) introduced Bank Verification Number (BVN), in reality, has been able to create a form of identification in the country, it has not been able to address some of the issues around identity management in the country.
Accordingly, he called on the federal government to work towards creating a credible and strong identity management system that can guarantee strong security for banks to expand access to credit amongst Nigerians.
Business Hilights recalls that the National Identity Management Commission (NIMC) statutorily mandated to drive the harmonization of all the nation’s identity systems including Drivers’ Licence, NIN, BVN, SIM registration, International Passport and others had been engulfed with funding crisis which boxed it to only the issuance of National Identity Number (NIN) instead of real National ID Card.
Identity experts had argued that as far as the nation’s identity systems continued to remain multifaceted, it would be hard arrive at an authentic and credible citizens’ identification status.
Armed with the above analogy, in his presentation at the 2019 Annual Conference of Finance Correspondents Association of Nigeria (FICAN) in Lagos, Sekibo observed that up till today in Nigeria, the lack of identity-powered tracking of individuals relocating from one place to another without notifying anyone remains a major issue in access to credit.
Represented by divisional head, Strategy and Business Solutions, Mr Segun Akanji, Heritage Bank boss averred that the dearth of effective and standard identity management infrastructure made access to credit for the SMEs in Nigeria tough as banks only see unmitigated risks.
He said “I am talking about identity management challenge. That is the biggest collateral to lending and that is what is missing in this economy. The day banks can verify where you live, everybody will get loan with ease, because you cannot run away,” explaining that “the problem is this, I don’t know where you live.”
“The address of the company is not where you live. And you can wake up in FESTAC today, but tomorrow you move to Ajangbadi or Victoria Island. You don’t have to tell me. And that is a huge problem for banks.
“People take a loan from banks and change accommodation, run away to Ibadan and you cannot find them. That must change. But how do you do that? It is very simple. You lose all the benefits that is allocated to you as a person, the day you relocate like that; you are as good as dead.
“Like when you live abroad, once you misbehave with your identity, you cannot bank, your credit goes bad, you cannot go to hospital and everything else goes bad and you cannot do anything. So, you have a responsibility to yourself and the country that supports you to report yourself.
“There is no value in our identity management as we have it. So, it is not just about banks, it is about the holistic structure where there is no value to the person that each of us will represent. ”He gave instances about developed economies such as the US where if one changes accommodation, they must notify all relevant institutions that they deal with because of the inherent value in the system.
Sekibo added that “Just like they do abroad, when you are changing accommodation, you will be the one going to your bank, hospital, everywhere, you will dedicate a day in a week until you go around to everyone and inform them of the address change,” he said.
“Why? There is value to where you live. That’s where your mail, pension, cheque comes. Everything attached to you comes to that address. So, there is value. We need to get to that and then no one will be needing collateral to get some minimum amount to do business.”
In his further submission, Sekibo argued that “You can argue that the banks have driven the government to some identity management system through the BVN, but the problem is that the infrastructure that will keep everybody in the homes where they live and not just change is non-existent.”
