Building Citizen Confidence & Driving E-Payment Adoption via E-

Governance

OUTLINE

1 E-PAYMENT ADOPTION IN NIGERIA

2 IDENTITY AND E-PAYMENT FRAMEWORK

3 CITIZENS SMART CARD

4 PROJECT EXECUTION

E-PAYMENT ADOPTION IN NIGERIA

CITIZENS ADOPTION OF E-PAYMENT IN NIGERIA

Reliance on cash based economy has been found to be risky and

cumbersome because money outside the banks cannot be subjected

to regulatory and operational procedures, and the ability of

monetary policy to achieve set objectives in the presence of sizeable

currency out of Bank (COB) is limited.

Greater percentage of problems within the economies of most

developing countries are attributable to the cash carrying nature of

their economy. This cash carrying character of the economy is also

responsible for large pool of money in the hands of the unbanked

citizens.

In order to reduce the volume of cash in circulation and reduce the risk of going

about with cash, several electronic payment systems and channels have been

provided which are accessed via a smartcard and have lead to the rise of e-

payment in Nigeria.

ATM

WEB

MOBILE

KIOSK

POS

CITIZENS ADOPTION OF E-PAYMENT IN NIGERIA

Ch

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CBN Annual report 2006, 2007, 2008, 2009 and 2010 (Annual report)- Level of adoption

of e-payment system by value (billion)

CITIZENS ADOPTION OF E-PAYMENT IN NIGERIA

Channels 2006 2007 2008 20092010 (half-

Year)

ATM 18.91 41.28 143.30 285.87 405.87

WEB 3.51 7.10 5.70 7.30 47.60

MOBILE 0.00 0.04 0.17 0.71 10.30

POS 0.09 0.95 0.01 0.01 5.40

The level of this adoption by the consumers has continue to increase significantly

and accounted for billions worth of transactions year to year

However, despite the general increase in adoption of e-payment , the rate of

adoption and use of POS is relatively low when compared to the rest of e-payment

system.

In spite of the low adoption of POS its relevance in the cash reduction strategy is

higher.

Also the rate of adoption of e-payment channel is relatively low when compared

with other developing countries.

FINDINGS FROM THE CBN REPORT

Insufficient/low presence of E-Payment Channels at various service points requested by Citizens. (Hospitals, Transport).

Several closed system with different cards for different systems (BRT Card, Lekki Toll Card, Health Card e.t.c)

Low level of satisfaction with the POS technology in addition to the settlement challenges faced by Merchant.

Lack of the needed know-how in utilizing various E-Payment services and associated infrastructure by majority of the Citizenry

Inadequate IT infrastructure to drive e-payment in Nigeria.

A high fraud prone sector.

Lack of interoperability in the E-Payment System in Nigeria by operators

REASONS FOR LACK OF CONFIDENCE ON THE E-PAYMENT SYSTEM IN NIGERIA

IDENTITY AND E-PAYMENT FRAMEWORK AS A VEHICLE TO BUILD

CITIZEN CONFIDENCE AND DRIVE E-PAYMENT ADOPTION

STRATEGIC INTENT

Driving E-Payment Adoption by building an identity/E-

Payment backbone together with ensuring that every citizen

have access to every social services only via a single payment

identity card

Uniquely Identify each Resident

Control Access to Services

technology as a key enabler of both initiatives

I D E N T I T Y + R I S K + F R A U D M A N A G E M E N T

S O A B U S A R C H I T E C T U R E

ONLINE REAL-TIME S t a t e l E - P a y m e n t B a c k b o n e

Pension

Benefits

Contract

Salary

Transport

Taxes

Land Registry

Health

Database Farm

E X P E N D I T U R E D I S B U R S E M E N T R E V E N U E M O B I L I Z A T I O N

LGDA

MDA

Tourism

Social Welfare

PAYROLL MANAGEMENTHUMAN CAPITAL

MANAGEMENT SYSTEM

IN SUMMARY, CITIZENSMART Card & ID INFRASTRUCTURE AT THE HEART OF GOVERNANCE

GOODLUCK JONATHAN

VISION FOR THE EVERY STATE

• Transparency• Accountability• Auditable• Global Best

Practices

• Intelligent Transportation • Integrated

HealthCare• Social Safety Net

• Technology Economy

• Expanded Retail Economy

• New Vertical Markets

• Targeted Programs• 247 Service Delivery• Expanded Revenue

base

Governance SmartCity®

Local

Technology

Economy

Socio-Economic

Planning

• Self Sustaining

• Integrated Approach

• Urbane & Cosmopolitan

• Functional & Effective

• World Class, Best

Practice

• Open Platform

CitizenSmart Card™… a t t h e h e a r t o f t h e s t a t e s o c i a l s e r v i c e s

THE NATION TODAY

Over the last few years, the state has invested in technology to drive

governance & administration of MDA processes & systems

Automation of Payroll Administration & Salary

Payment

Automation of Tax Administration System &

Revenue Mobilization

Automation of Mass Transit transportation

System

Automation of Access to health services.

HealthCare ManagementSocial B

enefit Transfe

rs

Identity M

anagement3 rd party system & application

MSCN 888777999000

BASIC NEED

A single Unique Identifier that identify residents, enable access to all government

services and drive interaction between MDA back-office systems for social service

delivery

• open platform

• biometrics enabled ID

• multi-applet support

• EMV, CBN, ICAO compliant

• identity management module

• 3rd integration & applications

• support online & offline

interaction

• flexible revenue model

• complete control/ownership

• multi-use, multi-modal, multi-

ops

• transaction authentication

• identity validation &

verification

• Local economy & Job Creation

Technical features

Business features

CITIZENSMART CARD

A simple smartcard powered by Verve that combines biometrics-

based identification and payment technologies, enables support for

multiple usage across various segments of the state economy;

1. Identification & Identity Management

2. Mass Transit System (multi-modal, multi-operator)

3. Social Benefit Transfers

4. Healthcare Insurance & Payment (STATECARE)

5. Tax Administration & Management

CITIZENSMART CARD CAPABILITIES

SSSN 888-777-999-000

Citizen Identity Management(Store ID, Biometrics, Social & Economic

Data,)

Payment - Bank Grade(EMV & CBN Complaint & Certified, Pre-

Paid)

Social Benefit Transfers(identification, transfers, payments &

management)

HealthCare Management(care management, insurance programs

& access)

Automated Fare Collections(transport systems, Toll systems &

electronic fares)

Tax Administration(tax payments, identification &

reporting)

ORGANIZATIONAL SCHEMA

FAMILY TREE MODELThe Identity & Asset Management

W A Z O B I A( 3 D i m e n s i o n )

BioData

Biometrics

Economic Status

Social Status

Tax Status

Medical Status

Family Linkages

Income Tax

Business Tax

Landed Property

VAT

Own Car(s)

Social Linkages

Transport

Hospital

Schools

Social Benefit

State NHIS

Utilities

o Father

o Mother

o

Brother

s

o Sisters

o Wife

o

Childre

n

Rent-A-House

Pro-Poor

Non-Poor

Business Owner

Data Revenue Sources Social Services

UTILITY OF THE CITIZENSMARTCARD

… R I S G R E Q U I R E M E N T

Ch

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ion

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IG

R

Banking

DSTATE License

Income Tax

Election ID

Passport

Linkage to Systems That Track ID

Citizen ID

Cit

izen

s R

eco

rd &

We

lfa

re S

erv

ice

s

Death

Food

Migration

Marriage

Family

Birth

Education

Employment

Health

Pension

InsuranceElectronic Benefit Transfer

Education

Food

Health Care

Transport

Mother & Child

Unemployment

GOODLUCK JONATHAN

PROJECT EXECUTION/IMPLEMENTATION

HOW DO WE FUND THE PROJECT

Focus of Model…

• Win-Win Partnership for all Stakeholders

• Create an incentive for long term relationship

• Manage Identified Risk

• Create Ownership with the MDAs

• Lower Operating Risk

• Create sustainable annuity income

Government+Bank

PPPConcession

SPV Company

Investors+service Providers

PPP Hybrid

Traditional Contract

Government +Investors+Service providers

Government+Service providers

E-SOLUTION FOR MARKET VERTICALS

SOLUTIONS FOR MARKET VERTICALS

•Revenue Collection•Online Revenue CollectionPAYDirect•Mobile Money Operator Solution•Retailing SolutionPAYDirect Offline

•Health Sector•Insurance SectorSmartHealth•Revenue Collection for the informal SectorMobile Revenue

Collection

•Pension Administration•Salary AdministrationAutoPay•Transport Sector•Fleet ManagementSmartMove•Human Resource ManagementPayroll Solution

IMPACT POINTS: IDENTITY MANAGEMENT SERVICES

Foreign Residents (All Non-Nigerians)

State & LGA Employees (Public Servants)

Business Community

SMEs & Micro Enterprises

Special Industry Groups

Taxable Adults

Student groups

Pro Poor

The CITIZENSMART Card would be positioned as the defacto

means of identification, authentication and verification of

residents and also for access to social services in the state.

The CITIZENSMART Card™ serves as the

Identity token for all residents but with

capabilities to support other functions.

It would also leverage the State-Wide

Identity Database to be created from

resident information.

Categorization and Segmentation of Card

types by branding may become necessary

as a tool for effective management and

price differentiation:

1. Black Card

2. Red Card

3. Yellow card

4. Green Card

IMPACT POINTS: HEALTHCARE MANAGEMENT

IMPACT POINTS: GLOBAL VIEW IN MASS TRANSIT SYSTEMS

Ctizensmart Card™ enabling Secure Payments for Public Transport

Clearing House System

Train

Metro

BusTramway

Supervision central system

VideosurveillancePassenger information

Fleet management

Integrated e-ticketing

Train control

Signalling

24 Nigerian Banks

CRITICAL SUCCESS FACTORS

1. Executive Support is Mandatory

2. Aggressive Marketing to educate & enlighten residents

3. Single multi-purpose card across the state

4. Open platform to support today & future requirements

5. Payment functionality is integral to success

6. Participation by the private sector is also key.

Thank You