The Nigeria National Information and Communication Technology Infrastructure Backbone (NICTIB) Project is driving financial inclusion in rural communities of Nigeria by increasing broadband penetration. This project, initiated by the Nigerian government and implemented by Galaxy Backbone Limited in collaboration with Huawei Technologies, aims to bridge the connectivity gap in the country.

Through NICTIB, telecom companies like MTN, GLO, and Airtel have expanded their connectivity into rural areas, enabling agency banking services to flourish. Agency bankers use hotspot access via phones or routers to power their machines, making it easier for people in remote communities to deposit and withdraw money, reducing the need for them to travel long distances to access banks.

The NICTIB project's completion of its first two phases has significantly contributed to an increase in broadband penetration from 19.8% to 48.18% as of May 2023. However, despite improved connectivity, interbank transfer failures continue to be a challenge, affecting people's trust in internet banking. Delays in transfers have led some individuals to opt for other means of storing their money, hindering the full potential of financial inclusion in rural areas.

Nevertheless, the growth of fintech companies and the increasing use of mobile banking, particularly by telcos like MTN with its Momo Payment Service Bank Limited, have the potential to drive financial inclusion further, especially in underserved rural communities. With continued efforts and improvements in digital infrastructure, Nigeria aims to reach a target of 70% broadband penetration by 2025, further promoting financial inclusion across the country.

Read more on BenjaminDada