Examining the Role of the CBN's Agent Banking Policy in Its Financial Inclusion Drive from a Mechanism Design Theory Perspective

Authors

• Umar Yakub Yakub Mr, Central Bank of NigeriaFollow

Keywords

Mechanism design, financial inclusion, agent banking, incentives, information asymmetry, moral hazard, adverse selection

Abstract

This paper analyses CBN’s Agent Banking policy and its role in promoting financial inclusion through the lens of mechanism design theory. It sought to evaluate how effective the policy has been in bringing together the incentives of key stakeholders—customers, agents, and banks—with the ultimate goals of the Bank’s financial inclusion policy. The scope covers the design and evolution of the policy, the incentives of the different stakeholders, and finding potential information asymmetries, moral hazard, and adverse selection issues. It assesses the impact of the policy based on available evidence and concludes with mechanism design-informed recommendations for improving the policy’s effectiveness in Nigeria’s financial inclusion drive.

Author Bio

Umar Yakub Yakub is a Deputy Manager in the Currency and Branch Operations Management Department of the Central Bank of Nigeria, where he contributes to operations, service delivery, and initiatives aimed at optimising the Bank’s operations. He holds a B.A in Business Studies.

His research interests include the evolution of money, the regulatory implications of digital assets, and the operationalisation of central bank digital currencies (CBDCs) 

Publication Title

Bullion

Issue

1

Volume

50

First Page

64

Last Page

71

Recommended Citation

Yakub, Umar Yakub Mr (2026) "Examining the Role of the CBN's Agent Banking Policy in Its Financial Inclusion Drive from a Mechanism Design Theory Perspective," Bullion: Vol. 50: No. 1, Article 6.
DOI: https://doi.org/10.33429/0331-7919.1634
Available at: https://dc.cbn.gov.ng/bullion/vol50/iss1/6