Ekiti State is set to launch an innovative initiative aimed at providing banking access to its local communities. The state government has announced a strategic partnership with three major commercial banks to roll out an agency banking programme across all of its local councils. The programme, which is scheduled to officially kick off on May 27, 2025, is expected to address critical issues of financial inclusion, employment generation, and economic empowerment.
A Step Toward Financial Inclusion for Ekiti Communities
The Ekiti State Government has been taking significant steps toward improving the socio-economic conditions of its citizens, and the introduction of agency banking is another leap in that direction. Agency banking refers to the process of utilizing agents, such as local businesses or individuals, to provide banking services on behalf of formal financial institutions. This arrangement ensures that even residents of remote areas can access financial services like deposits, withdrawals, and fund transfers without having to travel long distances to the nearest bank branch.
Governor Biodun Oyebanji has expressed his full support for the scheme, highlighting its alignment with both his administration’s “shared prosperity” vision and President Bola Tinubu’s broader agenda of ensuring financial access for every citizen. Agency banking, particularly in rural areas, is increasingly being seen as a key tool in promoting financial inclusion and supporting small businesses, something that is vital for the overall growth of the state.
“The scheme will bring banking services closer to the people, create employment opportunities, and empower local entrepreneurs,” said Governor Oyebanji during a recent briefing. The programme is expected to bridge the financial gap created by the withdrawal of some commercial banks from rural Ekiti communities due to security concerns in the past years. With agency banking, Ekiti residents will no longer have to travel far to access banking services, which will, in turn, help stimulate the local economy.
Enhancing Employment and Business Opportunities
In addition to increasing access to banking services, the initiative is designed to create jobs for residents across Ekiti’s local councils. According to Kayode Fasae, the state’s Commissioner for Wealth Creation and Employment, the agency banking scheme will not only offer new employment opportunities but also provide an avenue for businesses to scale and prosper.
“We have reached an agreement with three commercial banks to drive this programme across all 16 local councils of Ekiti State. The benefits will go beyond just making financial services more accessible,” Fasae said. “This initiative will create thousands of new jobs and stimulate economic activities by empowering local agents who will act as the face of these banks in their respective communities.”
Local entrepreneurs, small shop owners, and other eligible individuals will be trained and selected as banking agents. They will be responsible for offering basic financial services such as account opening, fund transfers, cash deposits, and withdrawals. By providing training and incentives to these agents, the government hopes to create a sustainable and vibrant ecosystem that can drive financial growth and security in the state.
Addressing Security Concerns and Building Trust
The security of banking operations in Ekiti has been a long-standing issue, particularly in rural areas. Over the years, several commercial banks have pulled out of these regions, citing concerns over bank robberies and other security challenges. This gap in banking services has left many Ekiti residents without access to basic financial services. However, the state government is hopeful that agency banking will address these concerns, providing a more secure and flexible alternative for both consumers and financial institutions.
By decentralizing banking through local agents, the risk associated with maintaining a centralized bank branch in rural areas can be minimized. Customers will be able to carry out their transactions with agents they know and trust, which should reduce the incentive for crime. Moreover, the training provided to agents will include measures to ensure their safety while handling financial transactions, further bolstering the programme’s security.
“We understand the security issues that have hindered financial services in the past,” Fasae said. “But with a localized approach, we believe the risk can be significantly reduced, and banking will be much more secure and accessible.”
A Win for Both Local and National Economies
While the agency banking programme will undoubtedly benefit Ekiti residents, it is also aligned with broader national objectives. President Bola Tinubu’s administration has emphasized the importance of ensuring that at least one financial institution is available in every ward across the country. This initiative fits seamlessly into that vision, ensuring that even the most remote parts of Ekiti will have access to formal banking services.
The project is also part of Ekiti’s larger economic development strategy, which aims to diversify the state’s economy by supporting sectors like agriculture, manufacturing, and services. As local businesses gain easier access to banking services, they will have the opportunity to expand, invest in new technologies, and reach broader markets. This could result in more jobs, higher local incomes, and an overall boost in the state’s economic activity.
Through this initiative, Ekiti is positioning itself as a model for financial inclusion and economic empowerment in Nigeria. The state government’s proactive approach has been praised by several stakeholders, including local business owners and residents, who have expressed optimism about the opportunities the scheme will bring.
Looking Ahead: Agency Banking’s Role in Sustainable Development
As Ekiti prepares to officially launch its agency banking programme, the state government is hopeful that the initiative will have lasting effects on the region’s socio-economic landscape. It’s not just about providing a banking service; it’s about laying the foundation for long-term economic sustainability.
In the coming months, the programme will undergo assessments to determine its impact on job creation, local businesses, and the overall economic health of Ekiti. If successful, the programme could become a model for other states in Nigeria looking to improve financial inclusion and promote local economic growth.
This effort underscores the growing importance of digital financial solutions in a world where access to banking services is becoming a fundamental necessity. By bringing these services closer to the people, Ekiti is not only helping its own citizens but also contributing to Nigeria’s broader financial and economic goals.
