AfDB Group, MTN commit $500,000 grant to women’s financial inclusion

The African Development Bank has signed a grant agreement for $500,000 with Y’ello Digital Financial Services (YDFS), a fintech subsidiary of MTN Nigeria, to be used for a study into economic, religious, and social factors hampering access to finance for women in northern Nigeria.

The research, which includes a feasibility study, women-focused design and testing, will focus on both agents and customers to provide insights into women’s use of mobile money services, will be funded through the Africa Digital Financial Inclusion Facility (ADFI).

AfDB stated in statement today that despite being the continent’s largest economy, 55% of rural Nigerians still lack access to financial services.

It noted that the rate of mobile money adoption currently stands at 4 per cent, with an agent ratio of 228.8 agents per 1,000 adults.

The Group further stressed that political instability and conservative cultural norms in parts of Northern Nigeria are thought to present barriers to women’s access to finance, adding that  80 per cent of agents in the region are men.

“The African Development Bank, through the Africa Digital Financial Inclusion Facility (ADFI), is delighted to support this project, furthering our work to improve the quality of life for people in Nigeria and contribute to the Sustainable Development Goals, particularly as relates to poverty, and gender inclusion,” said Stefan Nalletamby, African Development Bank Director of Financial Sector Development.

On behalf of YDFS, Usoro Usoro, Chief Executive Officer, said, “We are truly excited about this partnership with the African Development Bank, and the possibilities for advancing financial inclusion in Nigeria, particularly for the traditionally excluded segment of women in Northern Nigeria.”