By Rabiu Alhasan Elkanawi
KAYI Microfinance Bank has unveiled a groundbreaking digital financial inclusion program focused on Tsangaya Schools (commonly known as Almajiri schools) in Northern Nigeria. This visionary initiative is designed to bridge the gap between underserved communities and the digital banking system, thereby fostering economic growth and societal development. By targeting these non-formal learning centers, the bank aims to uplift remote communities where many residents have long struggled to access essential financial services.
Northern Nigeria has traditionally faced significant hurdles in achieving comprehensive financial inclusion. Vast distances, poor banking infrastructure, and a lack of trust in formal financial institutions often discourage many people from engaging with banks. Recognizing these challenges, KAYI Microfinance Bank is piloting a model that trains and equips Tsangaya schools starting with four states—Kano, Katsina, Kaduna, and Jigawa—to serve as community champions for digital financial access.
Under this initiative, each participating Tsangaya school receives a robust package valued at five million Naira, comprising comprehensive business management and financial literacy training, POS device and startup funds. By bringing deposit, withdrawal, and fund transfer services closer to the grassroots, the program significantly reduces the physical distance many have to travel to conduct everyday transactions. This localized approach not only boosts trust in formal banking but also enhances local economies by circulating money within the community.
A hallmark of this program is its strong emphasis on education and empowerment. KAYI Microfinance Bank collaborates with malams (teachers and overseers of Tsangaya schools) and their students (almajirai) to ensure they acquire relevant skills in financial literacy, business management, and customer service. Rather than simply providing technology, the bank invests in the human capacity necessary to maintain and grow these new cash point businesses. Over time, Tsangaya schools become pivotal economic hubs in their neighborhoods, directly addressing issues such as street begging by offering pathways to self-reliance and entrepreneurship.
What sets KAYI’s effort apart from other financial inclusion drives is its clear focus on integrating community development with formal financial systems. By rooting its training programs in the cultural and educational fabric of Tsangaya schools, KAYI fosters a spirit of ownership among participants. Almajirai and malams, who once had limited exposure to modern banking, now find themselves operating as financial intermediaries. Their schools become not just places of learning, but also platforms for sustainable business ventures that transform their local communities.
The success of this laudable initiative, also relies on support from policymakers and government agencies. Government can amplify the program’s reach by providing subsidies and interventions through this grassroots program. This will help replicate and scale this model across other parts of Northern Nigeria.
KAYI Microfinance Bank’s approach offers a powerful template for bridging the gap between remote communities and the wider financial ecosystem. By merging technology, education, and cultural sensitivity, the bank is forging a pathway for inclusive economic participation, one that could reshape the socio-economic landscape of Northern Nigeria. Rural dwellers, who once had little or no access to formal banking, can now save money safely, receive funds without traveling long distances, and even invest in small enterprises.
As the project evolves, it promises to be a catalyst for reducing poverty, curtailing unemployment, and spurring local entrepreneurship. By presenting Tsangaya schools as models, KAYI is demonstrating that even the most marginalized communities can embrace innovative financial solutions when they are carefully tailored to their unique needs. This marks a new chapter for Northern Nigeria, where financial inclusion is no longer a distant aspiration but an attainable reality—one that holds the promise of a more equitable and prosperous future for all.
Rabiu Alhassan Elkanawi writes from Kano and he can be reached via alhassanelkanawi@gmail.com
