A Spotlight on IFC’s Diagnostic Study on DFS Agent/Merchant Challenges in Nigeria Conducted by CPPL

In the rapidly evolving landscape of Digital Financial Services (DFS), agents and merchants serve as the backbone of financial inclusion, particularly in underserved regions. Recognizing the unique challenges faced by these key players, especially women, the IFC World Bank commissioned a comprehensive diagnostic study to identify and address these issues. Customer Passion Point Limited (CPPL) proudly took on this critical assignment, delivering a study that has since become instrumental in enhancing the experiences of DFS agents and merchants across Nigeria.

Understanding the Scope and Importance of the Study

The study was conducted across nine northern states in Nigeria, a region where access to financial services has historically been limited. This diagnostic study aimed to identify the unique challenges faced by female DFS agents and merchants, who often contend with both general market difficulties and gender-specific obstacles. The findings were intended to inform strategies that could enhance the effectiveness and sustainability of these agents, thereby strengthening the entire DFS ecosystem in Nigeria.

Key Findings and Actionable Insights

CPPL’s comprehensive approach involved direct engagement with agents and merchants, gathering data that provided a clear picture of the day-to-day realities they face. Some of the key challenges identified included:

• Limited Access to Financial Resources: Many female agents and merchants reported difficulties in accessing the capital necessary to grow their businesses, a barrier that is particularly pronounced in the northern regions.
• Cultural and Gender Barriers: Cultural norms in some areas restrict the mobility and economic participation of women, limiting their ability to operate effectively as DFS agents.
• Technological Challenges: Issues such as unreliable internet connectivity and lack of access to modern digital tools were highlighted as significant barriers.
• Training and Capacity Building Needs: There was a clear demand for more targeted training programs to help agents and merchants maximize their potential and navigate the complexities of the DFS market.

These insights have been instrumental in guiding the development of initiatives aimed at improving the experience of DFS agents and merchants. These initiatives include targeted training programs, improved access to financial resources, and strategies to overcome cultural barriers.

A Job Well Done

CPPL takes immense pride in the successful completion of this diagnostic study. The project not only provided valuable insights but also reinforced our commitment to driving value in the financial services sector. Our collaboration with the IFC World Bank on this project is a testament to our ability to deliver actionable, impactful results that contribute to the broader goal of financial inclusion.

Looking Forward

The actionable insights from this study have already started to influence the policies and practices of stakeholders within the DFS ecosystem. As these changes take root, we anticipate significant improvements in the operational efficiency and satisfaction of DFS agents and merchants across Nigeria, especially for women who are often at the forefront of these challenges.

Final Thoughts

At CPPL, we are honored to have been part of this important initiative. We extend our gratitude to the IFC World Bank for entrusting us with this critical task and for the opportunity to contribute to the advancement of digital financial services in Nigeria. We remain committed to continuing our work in this area, helping to create a more inclusive and supportive environment for DFS agents and merchants across the country.