The National Identification and Registration Authority (NIRA) has partnered with the Somali Bankers Association (SBA) to roll out a National Digital Identification system.
This new system, formalized through a Memorandum of Understanding (MoU), marks a significant milestone in the modernization of Somalia’s banking infrastructure.
Somali Deputy Prime Minister Salah Ahmed Jama, alongside other prominent government officials, inaugurated the new National Digital Identification system in Mogadishu. The system, which assigns a Unique Identification Number (UIN) to each Somali citizen, aims to revolutionize customer identification in the banking sector by enhancing security and streamlining processes.
The initiative is spearheaded by NIRA in collaboration with the Somali Bankers Association. Key figures in the launch included Deputy Prime Minister Salah Ahmed Jama, NIRA Director General Abdiwali Tima’adde, and Somalia’s Central Bank Governor Abdirahman Mohamed Abdullah.
The launch event was held in Mogadishu, Somalia’s capital, marking a pivotal moment in the country’s financial sector. The MoU was signed in the presence of high-ranking officials, emphasizing the significance of this collaboration.
The new National Digital Identification system is designed to address several long-standing issues within Somalia’s financial sector.
By linking banking services with a Unique Identification Number (UIN) tied to each citizen’s National ID, the system aims to combat identity fraud, money laundering, and inefficiencies associated with outdated identity management practices.
This modernization effort is expected to enhance the security and accuracy of customer data, reduce operational costs, and foster greater trust in the financial system.
Under the new system, Somali citizens will use their National ID, which is now integrated with a UIN, to access banking services. This integration simplifies banking processes, ensures accurate customer data, and minimizes the risks associated with fragmented identities. The system is also anticipated to support the establishment of a Credit Reference Bureau, which will rely on the UIN for accurate credit evaluations.
The introduction of a National Digital Identification system is part of Somalia’s broader efforts to modernize its financial sector and integrate more effectively with the global economy.
Historically, Somalia has faced significant challenges in identity management and financial security, contributing to issues such as fraud and inefficiencies in service delivery.
The National ID system, which NIRA has been working to implement, is a critical component of the National Transformation Plan (NTP), aimed at achieving comprehensive economic and administrative reforms.
In his address, NIRA Director General Abdiwali Tima’adde highlighted the broader implications of the partnership: “This collaboration between NIRA and the SBA is about more than just identification.
It’s about empowering Somali citizens to fully participate in the global financial system and mitigating risks such as fraud, money laundering, and other legal violations.”
Deputy Prime Minister Salah Ahmed Jama emphasized that the new system is a crucial step in Somalia’s National Transformation Plan, integrating the country’s economy more closely with international financial systems. Meanwhile, Central Bank Governor Abdirahman Mohamed Abdullah noted that the UIN will play a pivotal role in establishing a reliable Credit Reference Bureau, further strengthening the financial sector.
This groundbreaking initiative is expected to pave the way for increased economic growth, enhanced financial security, and greater global integration for Somalia.