Micro financial products for low income women nationwide and/or any customer in Northern Nigeria
The deadline for the RFP is 6:00 pm on September 16, 2016

All applicants can apply for Window 1 or Window 2 or both, if applicable

EFInA invites all eligible organisations to apply for the Request for Proposals round 7 (RFP 7) of the Innovation Grant. RFP 7 has two windows: Window 1 will only consider proposals that seek to increase the uptake and usage of micro savings, micro loans and/or microinsurance products, preferably utilising electronic payment channels, among low income women nationwide and/or any customer in Northern Nigeria.

About the EFInA Innovation Grant The EFInA Innovation Fund was launched in 2009 with the objective of promoting the development and implementation of innovative financial products and services targeting the unbanked and under-banked low income population. The Fund seeks to support new ideas and approaches to expanding financial access to the underserved population in Nigeria.

As innovation involves taking risks, EFInA will share the risk of developing and implementing innovative products by providing grant subsidies for commercial and policy related initiatives. EFInA seeks to support the commercial viability of products and services for the underserved population.

Background of the EFInA Innovation Grant RFP 7 Window 1 - Women According to the EFInA Access to Financial Services in Nigeria 2014 survey (A2F 2014 survey), there are 50 million adult women (54% of the adult population) in Nigeria. Among the total adult women population, 21.9 million are formally included, 6.7 million use only informal products e.g., esusu and ajo, and 21.4 million are financially excluded. Compared with men, there are 43.5 million adult men in Nigeria, 23.5 million are formally included, 4.5 million use only informal products, and 15.5 million are financially excluded. More women are financially excluded when compared with men.

The A2F 2014 survey also revealed that while 30.1 million women save or keep their money aside, 13.6 million save at home and only 206,000 have an insurance product. The demand for insurance is significant as 6.7 million would be interested in microinsurance. Furthermore, 3.8 million women who are interested in insurance products would consider using microinsurance products for business/goods/stock. There is an untapped credit market as 44.3 million adult women had not taken any loan facility in the past twelve months.

In terms of earning potential, among the women who are financially excluded, 14 million adult women earn seventy thousand Naira and below as monthly income.

Background of the EFInA Innovation Grant RFP 7 Window 1 - Northern Nigeria (North East and North West Geopolitical Zones)
According to the EFInA Access to Financial Services in Nigeria 2014 survey (A2F 2014 survey), there are 31.9 million adults in North East and North West geopolitical zones (representing 34% of the entire adult population) in Nigeria. Among the adult population in the North East and North West, 10.3 million (32% of the North East and North West adult population) are formally included in the financial system; 2.4 million (8% of the North East and North West adult population) use only informal products e.g., esusu and ajo; 19.3 million (60% of the North East and North West adult population) are financially excluded.

In comparison with the other four geopolitical zones (North Central, South East, South South and South West), there are 61.6 million adults of which 35.2 million (57% of the adult population of the other four geopolitical zones) are formally included in the financial system; 8.8 million (14% of the adult population in the other four geopolitical zones) use only informal products; 17.6 million (29% of the adult population in the other four geopolitical zones) are financially excluded.

Furthermore, 72% of the adult population in the North West and North East are more likely to save at home compared to 31% of adult population in the other four geopolitical zones that save at home.

It is worth noting that the demand for insurance is significant as 1.5 million adults in the North East and North West are interested in microinsurance products for business/goods/stock. Moreover, there is a potential market for loan products as 26.7 million adults in the North East and North West geopolitical zones did not take any loan facility or borrow in the past twelve months. Financial services providers may also consider offering non-interest loan and savings products.

What is EFInA looking for in RFP 7?

  • Applicants must have a track record of providing micro financial products, i.e., micro savings, micro loans, or microinsurance
  • Applicants must have piloted and tested their financial products prior to applying for the Innovation Grant
  • Partnerships are encouraged; however, applicants must demonstrate that they have experience with strategic partnerships that have led to successful implementation of projects
  • Applicants should provide a sound distribution strategy for reaching women and/or customers in Northern Nigeria
  • Applicants must provide compelling agent value propositions, where a digital channel is utilised
  • Applicants must provide clear targets with credible justification for reaching the targets
  • Applicants must develop effective customer awareness campaigns that demonstrate the benefits of the products/services offered to customers
  • Applicants must provide evidence that they have the resources to match at least a 1:1 funding ratio

Who can apply?

  • Licensed Financial Institutions (e.g., Deposit Money Banks, Microfinance Banks, Insurance Providers, etc.).
  • Licensed Mobile Money Operators, where applicable
  • Licensed Super Agents, where applicable

Partnerships with relevant organisations are encouraged

How much money does EFInA provide?

Size of Grant

$250,001 - $2,000,000

Applicant’s Contribution

All applicants will be expected to contribute at least 100% of the Grant awarded by EFInA. The Grantee’s matching funds may be used to acquire fixed assets or fund project staff at a disclosed rate and on a basis acceptable to EFInA for the purpose of the project

Eligible Expenditure

EFInA Innovation Grant funding can be used to cover the costs of:

  • Launching, rolling out and/or implementing a product, service or delivery mechanism that has been piloted, including:
  • Scale deployment of products/services
  • Training of agents
  • Technical assistance or special consultancy support
  • Market awareness campaigns and advertising expenses that are directly related to the project being funded and aim to improve awareness and financial capability/literacy of the targeted (low income) customer segment

Non-Eligible Expenditure

EFInA funds CANNOT be used for:

  • Subsidising the organisation’s general operations and staff related costs
  • On-lending to customers
  • Office relocation, branch infrastructure, general fixed assets
  • Advertising and marketing expenses not associated with financial capability/literacy or directly related to the project being funded
  • Obtaining a business operations license
  • Acquiring an equity stake in a new or existing business
  • Purchasing phones, tablets, or POS devices

Maximum Term of EFInA Grant Funding

24 months from the first disbursement of the Grant

Funding Conditions

The Grant is payable in quarterly tranches, with each payment linked to the achievement of pre-agreed key performance indicators (KPIs) set forth in the detailed project plan and Grant Agreement

How can an organisation apply? Follow and complete the following four steps:

Step  1: Complete the EFInA Innovation Grant application form
Download Innovation Grant Application Form here

Step 2: Complete financial and work plan templates including the following associated tabs:
Download  financial and work plan templates here

Step 3: Include evidence for company eligibility – provide a copy of the following documentation or completed forms

  • Certificate of Incorporation
  • Memorandum and Articles of Association
  • Most recent Corporate Affairs Commission (CAC) 7 (Particulars of the Directors)
  • Most recent Corporate Affairs Commission (CAC) 2 (Statement of share capital and return of allotment of shares)
  • Form Corporate Affairs Commission (CAC) 10 (Form of Annual Returns) filed for the year preceding the year of the Grant
  • Audited accounts statements for the last 2 years preceding the year of the Grant (however, new entities or joint ventures may present the audited statements of their main sponsor or shareholders)
  • Signed Memorandum of Understanding (MOU) with all implementation partners
  • Letter from the organisation’s Board approving the EFInA Grant application and stating their commitment to the proposed project
  • Where applicable, applicants with intellectual property that is protected by laws in Nigeria must demonstrate proof that they have obtained permission to use such intellectual property prior to commencing a project funded by the EFInA Innovation Grant

Step 4: Provide capacity statements

  • Copies of relevant licenses/regulatory approvals to provide the products/services from relevant regulators, e.g. Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Nigerian Communication Commission (NCC) license(s) and any other regulator
  • Letter of approval from CBN to operate agent banking services (for super agents), including approval from CBN permitting the financial institution to operate agent banking services in Nigeria (for non-Mobile Money Operators)
  • Copy of one-time Approval from the Central Bank of Nigeria, to offer agent banking services (for Deposit Money Banks, Microfinance Banks, Primary Mortgage Banks etc.)
  • Evidence of compliance with the CBN’s Mobile Money Operators monthly data reporting requirements, for Mobile Money Operators only
  • Curriculum Vitae (CV) of the members of the proposed project team

How will EFInA evaluate the grant application? The following criteria will be used to assess all proposals:

Criteria

Rating

Considerations

Organisational Assessment

20%

  • Demonstrate evidence that the product has been piloted and tested prior to applying for the Innovation Grant
  • Describe the organisation’s lessons from the pilot. What areas of the pilot were unexpected, i.e., exceeded expectations or fell short of expectations? How will the products/services be modified, if relevant, before roll-out or scale-up?
  • Demonstrate the long term profitability of the products/services
  • List all the sources of revenue for the products/services
  • Provide the cost structure for delivering the products, including the CAPEX and OPEX requirements
  • Provide evidence that the board of your organisation is committed to implementing this project (in terms of strategic direction, funding and other resources needed) for the proposed project duration and beyond
  • Provide the implementing team structure – who will be involved in implementing this project, what are their titles and roles? Include past achievements of each team member (attach the CVs)
  • Highlight the risks (internal and external factors) that could influence the success of the products roll-out (e.g., regulatory environment, infrastructure conditions, socio-economic conditions, market maturity, etc.)
  • Provide an assessment of the capabilities of your organisation that will ensure success of the product/service roll-out or scale up
  • If partners are involved in the roll-out or scale-up of the products/services, provide a partnership assessment that describes, the strengths, weaknesses, risks and roles of each partner

Customer Value Proposition

20%

  • Using evidence and data, describe your customers’ pain points and the existing, traditional alternatives to solving these pain points today
  • What problem will be solved by offering the products/services?
  • Briefly define the products/services’ use case for the customer
  • Describe your customer journey and touch points with your business and any partners, from awareness to utilisation
  • How many additional customers will the products serve in the next 24 months?
  • What is your strategy for reaching the unbanked and under-banked population from awareness to activation? What channels will be used to reach these customers?
  • Describe your plans to provide customer service. How can customers register their complaints about the products/services. Include the redress mechanisms
  • What is the plan for educating customers on the benefits of the products/services offered?
  • What incentives, if any, will be provided to ensure that the customers take up the financial products and remain active?

Agents Value Proposition (as applicable)

20%

  • Do you need agents as part of your end-to-end offering?  If so, describe the ideal agent
  • Describe the role agents will play, what is expected of them.  Please describe the type of agents that will be utilised e.g., direct sales agents or small businesses
  • Describe your agent network management strategy
  • What is the agent’s value proposition?
  • How will your organisation identify potential new agents? What is your agent recruitment strategy?
  • Demonstrate the organisation’s plan to provide customer service to the agents
  • Provide the organisation’s plan to train and re-train agents? How will the organisation demonstrate evidence that agents have retained the training?
  • Which incentives, if any, will be provided to ensure that agents remain active?
  • What proportion of agents will be women? What is the plan to acquire and retain female agents?
  • What proportion of agents will be from Northern Nigeria, if applicable
  • Provide a breakdown of the agent’s expected commission in the first 6 months, first year and by the end of the second year
  • Explain the plan for agents’ liquidity management. How will that plan change in different geographies, if applicable?
  •  

Delivery Mechanism & Supporting Technology

15%

  • What is your organisation’s product/service distribution strategy?
  • What states will be targeted in the next 24 months?
  • What will be the digital components of the products/services, where applicable?
  • Provide a price list of all products/services as well as terms and conditions that will be offered to the customers
  • Can the product offerings be replicated across the country?
  • What technology will be employed to extend the reach of the product/service and potentially reduce the cost for customers?
  • Is the technology required to implement this project already in place or will the current technology require change as part of this project?
  • How will the organisation ensure that the technology platform utilised is secure and consumer data is protected?

Innovation

15%

  • What is innovative about the products/services?
  • Provide justification for requesting donor funding for these products/services
  • How will the innovation enhance the financial inclusion and the lives of the customers and/or agents?

Developmental Impact

10%

  • Will these products/services have the potential to further the financial inclusion agenda in Nigeria?
  • What is the development impact of the products on women, where applicable?
  • What is the development impact for potential customers in Northern Nigeria, where applicable?

How Will EFInA monitor the project? Monitoring and Evaluation (M&E) is an on-going process throughout the tenure of the Grant. The grantee’s Programme Manager is responsible for ensuring that the overall objectives of the Grant are met as well as ensuring project governance and relationship management. The M&E process will involve:

  • Monthly status reports
  • Quarterly visits and meetings conducted by EFInA
  • Quarterly progress reports to be sent by the grantee to the Grants Administrator in a format pre-defined by EFInA
  • An end-of-project evaluation report that includes lessons learned, major challenges, and key achievements, which will be presented to EFInA’s management-
  • Grantees may be subject to audits
  • Changes to the project must be communicated to, and approved by EFInA through a pre-agreed Project Change Control process included in the Grant Agreement

What is the timeline for the entire Innovation Grant Application process? To view a complete timeline please visit the Innovation Grant Application Process page

Which organisations have received Innovation Grants from EFInA in the past? To view Innovation Grant Recipients please visit the Grant Recipients page

Completing your RFP7 application All applicants must complete the Innovation Grant Application Form and Templates listed on this page. All completed grant application forms, templates and required documentation should be submitted to the EFInA Grants Team at innovation@efina.org.ng by 6:00pm on Friday, September 16, 2016. EFInA will notify all applicants of the outcome of their applications by Friday, December 16, 2016.

Please use the checklist below to ensure you have a complete application

Required Documents

Checked

  •  
  • Application form

 

  • EFInA financial & work plan template (complete the four tabs)

Work plan/Milestones/Project Budget/Projected Profit & Loss Statement

 

  • Curriculum Vitae (CV) of the members of the proposed project team

 

  • Certificate of incorporation

 

  • Memorandum and Articles of Association

 

  • Most recent Corporate Affairs Commission (CAC) 7  (Particulars of the Directors)

 

  • Most recent Corporate Affairs Commission (CAC) 2  (Statement of share capital and return of allotment of shares)

 

  • Form Corporate Affairs Commission (CAC) 10  (Form of annual returns) filed for the year preceding the year of the Grant

 

  • Audited accounts statements for the last 2 years preceding the year of the Grant (however, new entities or joint ventures may present the audited statements of their main sponsor or shareholders)

 

  • Signed Memorandum of Understanding (MOU) with all implementation partners

 

  • A letter from the organisation’s Board approving the EFInA Grant application and stating their commitment to the proposed project

 

  • Where applicable, applicants with  intellectual property that is protected by laws in Nigeria must demonstrate proof that they have obtained permission to use such intellectual property prior to commencing a project funded by the EFInA Innovation Grant

 

  • Copies of relevant licenses/regulatory approvals to provide the products/services from relevant regulators, e.g. Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Nigerian Communication Commission (NCC) license(s) and any other regulator

 

  • Letter of approval with CBN licensed financial institution to operate agent banking services (for super agents), including approval from CBN permitting the financial institution to operate agent banking services in Nigeria (for non-Mobile Money Operators)

 

  • Copy of one-off approval from the Central Bank of Nigeria, to offer agent banking services (for Deposit Money Banks, Microfinance Banks, Primary Mortgage Banks, etc.)

 

  • Evidence of compliance with the CBN’s Mobile Money Operators monthly data reporting requirements, for Mobile Money Operators only

 

Frequently Asked Questions To see frequently asked  questions (FAQs) please visit Application Guidelines FAQs page

FOR MORE INFORMATION ON EFInA INNOVATION>GRANTS, CONTACT US Email: innovation@efina.org.ng