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
ann
els
to
Dri
ve T
ran
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ion
s
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
ann
els
to
Dri
ve T
ran
sact
ion
s &
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