Dear Subscriber,

The newly listed telco giants – MTN Nigeria and Airtel Africa – released their results for the first half of the year. Both recorded double digit growth in revenue during the period. Together, they account for 27.56% of the NSE’s total market cap. The impressive earnings notwithstanding, have failed to alter investor sentiment as the NSE has lost 11.17% year to date.

The Monetary Policy Committee of the Central Bank of Nigeria (CBN) has held rates constant for a 2nd consecutive meeting. In the absence of a Fiscal policy team, the CBN is attempting to drive GDP growth by stimulating credit growth. With inflationary pressures lurking, the CBN is waiting to see if aggressive moral suasion will yield positive results.

According to EFInA, 63.6% of Nigerian adults are financially literate. The CBN, in its National Financial Inclusion Strategy, has developed a road map to ensure this figure rises to 80% by 2020.

To achieve this, it has introduced regulations and guidelines for the licensing and operations of payment service banks (PSBs). Leveraging telcos as PSBs will not only grant the unbanked public increased access to financial services, but will also ease their access to funds.

In this edition of the FDC Monthly publication, the FDC Think-Tank analyses these issues and their implications on businesses and the economy at large.

Enjoy your read.