The NIMS and the Financial Sector In Nigeria By Barr. Chris ‘E Onyemenam Presentation at the 2 ND International Conference on Due Diligence Organized by the Committee of Chief Compliance Officers of Banks in Nigeria [CCCOBIN] Protea Hotel, Lagos, March 21 – 23, 2012.

Outline of presentation The Problem: The need for an Identity Management System The National Identity Management Commission (NIMC) The Solution: The National Identity Management System (NIMS) Value Proposition: Impact Overview (emphasis on financial Sector/ Banking Landscape) Implementation to Date/Conclusion

Citizenship Birth Education Entrepreneurship Useful Services Health Social Life Pension Employment Finance The need for trusted Identity system Death GSM number Identification Authentication Exclusion (Watch List) Identification Authentication Exclusion (Watch List) The Identity/Citizen critical lifecycle events

The Gap  Over 100 million Nigerians have no official identity.  75% of identity documents are fake and self issued.  There is no timely means of authenticating the documents.  Less than 20% of population have access to financial services  Actual total bank cards less than 10% of population

Some of the Consequences Massive Exclusions Social benefits and the Poor Socio-economic Planning Creation of Idle assets Undeveloped sectors Financial, Industrial, Agricultural Credit Bureau Consumer Credit Mortgage and other sectors Financial Inclusion Security Issues Physical: Law and Order Business Environment Multiple/ghost/duplicate identities Frauds: Advance Fee, Identity related Social Benefits Administration: Criminality and delinquencies Competitiveness High operational cost Losses due to frauds Development and maintenance of costly ‘silos databases’ Loss of investment inflows

Banking and insurance transactions Customer Credits NAPEP and other social safety programmes ?? Civil Service Banking and Insurance transactions NAPEP and other social safety programmes Customer Credits Civil Service 6

The solution... National Identity Management System(NIMS)  The National Identity Database  The National Identification Number (NIN)  The National Identity (smart) Card  Person Identity Authentication and Verification Services  Harmonisation & Integration of Identity Databases

NIMC: The legal frame work It has the mandate to establish and maintain A Unique National Identity Database in Nigeria Register persons covered by the Act, assign a Unique National Identification Number (NIN) Issue General Multi-Purpose Cards (GMPC) Create and Manage PIDVS Harmonize and integrate existing identification databases in Nigeria. Established by the NIMC Act No. 23 of (Sec. 1,2,5,14 & 18)

9 System Overview (c) 2011, Government of Nigeria 9

10 NIMS Overview

11 Identity Payment Transit Services Payment & Transit Payment & ID ID & Health ID & eCommerce Enable a secure digital ID platform for Authentication and Verification Web based/Match-on -Card citizen verification

National Identity Database All Nigerians Legal Residents in a single accessible database. Will be largest Database in Nigeria Will be integrated to other databases through the NIN 12 NIN: NNNNNNNNNNN

National Identification Number (NIN)  Enrol once and be identified for life: It’s a game changer!  One person one unique number (NIN) for life.  Never ever reused: Your NIN is yours for ever, alive and in death  Updates and changes to data easy, possible and tracked NIN: NNNNNNNNNNN 13

Building a Unique National Database Trained Personnel Registration Centers : Mobile Enrolment Centres Data Centers (Primary and Disaster) Core Network Sites : Access Network Sites : Satellite Terminals : Servers and Computers

15 Acquisition of Personal Information data Recordable Biometry Finger Print (10 print) Face (ICAO; EU) Signature Iris Others…  The reliability of the Identity Database starts with a secure and trusted data registration and enrolment Registration Internet portal Web Registration booking Web Demand tracking Document availability alert Web Pre registration form Live capture Fixed Station Mobile Station ICAO compliance software  Avoid production center refusal and return/accelerate production, delivery On Site Data Quality control Data Acquisition AFIS 1:N Check Database check On Site ICAO Compliance check Data Acquisition AFIS 1:N Check Database check On Site ICAO Compliance check

NIMS de-duplication Clearance (c) 2011, Government of Nigeria 16

NIMS Detailed Report (c) 2011, Government of Nigeria 17

The National Identity Card Your identity database in your pocket. 18

Offline Verification You and your Card Fingerprint Live Scanner Smart Card Reader Automatic Comparison with Fingerprints on the Smart Card Automatic comparison with fingerprint on card 19

Online Verification You and your NIN VPN Citizen ID Verification 20

21 Central ID Registry (the NIMS/NIN) Law Enforcement Agencies Credit Bureau Financial Institutions, Banks, etc INEC (VIN) Land Registries FRSC (DIN,VIN) (FIRS- TIN) Pension/Insurance/NHIS NIMS and the Harmonization mandate (NIN) SIM Register (c) 2011, Government of Nigeria 21

Comparing the past with the present The difference is clear NIMC: 2007 till date DNCR: 1967 – 2007 Disaster recovery and Contact centres PPP, temp, perm & mobile enrolment centres Open system, with NIN smart card and verification service. Project Managed by Nigerians for Nigerians. Poor logistics, missing and undelivered cards. Closed system, providing card only, No Business continuity Contract, Project Managed by foreigners

National Identity (smart )Cards Facilitate Financial Inclusion) Facilitate enrolment for Educational purposes Launder Nigeria’s image better Business and Health Insurance Social welfare programmes Tax, CAC, Driver’s Licence, INEC,SIM Reg. etc Facilitate issuance of Visa to Nigerians Services- centric Digital Certificates secures the Card Currency grade Security Your identity Database in your pocket, secured by your biometrics Better control of Legal Residents and enhances t Border Control Secure financial transactions through NIBSS and other platforms There is provision for other services to come under this platform Reduction in Identity Fraud Informal sector captured at last

Balance : Rs.1,00 0 Value Proposition Delivery Strategy Biometric POS PIDVSP Mobile Phones Banks Insurance, and other services Social Services Government Services Healthcare Education

Impact of the NIMS on Banking Landscape: National Identity Database KNOW YOUR CUSTOMER (KYC) BANKS

26 Set-up 1 st web based ID Verification Service Site Target = 100m Complete coverage = 150m 3months +30 months 40 months Faster enrolment Urgency in implementation Historic day 1 st NIN = February 23 rd, 2012

Thank you