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A new study has revealed that less than 50% of Nigerians and only about 40% Africans have recognisable legal identity, whether digital or analogue – a major hurdle to the continent’s digital economy journey.
According to the report, ‘Digital ID in Nigeria: State of the Industry,’ by VerifyMe Nigeria Limited and partners, only “15% of Nigerians have both an e-ID card and a NIN (National Identity Number) while about 30% or 66 million have a NIN but not e-ID card8 (the physical token linked to the NIN).”
By implication, more than 100 million Nigerians and over 500 million Africans are outside a digital identity ecosystem and therefore unable to access any socioeconomic value via increased reach and inclusion. They are unable to access or perform digital services that include financial transactions, voting or even acquiring driving licence.
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The report notes: “This means roughly 40% of the continent and 50% of the country, respectively, lack an integral enabler of benefits such as accessing a financial product, voting, or participating in online marketplaces.”
The report details the state of digital ID in Nigeria, offers insight on streamlining government and private sector relations, and makes a case for universal coverage.
“This is an independent report commissioned by VerifyMe and developed by Dalberg Advisors between July 2021 to November 2021. It represents a stock-taking of the state of and opportunities within the digital ID and eKYC industry in Nigeria and the beginning of what we hope will be a recurring assessment of progress and new developments year-on-year,” says Co-founder & CEO, VerifyMe Nigeria Limited, Esigie Aguele.
He adds: “This report examines digital identity systems in Nigeria and explores the role of digital identity as a critical and foundational enabler for a range of services and transactions, including financial services, social welfare programmes and government services.”
VerifyMe Nigeria is am identity verification and Know Your Customer (KYC) technology company while Dalberg Advisors, is a global consulting firm.
In his own contribution, Director General, National Identity Management Commission (NIMC), Aliyu Aziz,says there is alredy considerable effort to imrpove enlistment of Nigerians into the digital ecosystem and to also provide integration and interoperability of databases across various agencies and departments.”
Dalberg states: “Nigeria’s digital economy is growing at a rapid pace, contributing significantly to national GDP and productivity. There are, however, barriers to full economic and social inclusion as well as factors that jeopardize the safety and security of the system at scale. Ensuring digital interactions are secure is paramount.”
Download the full report here.
