The Nigerian Economic Summit Group (NESG) and industry experts in the financial technology sector have urged the authorities and players in the sector to synergise and improve the seemingly poor financial infrastructure and poor level of financial literacy in the country for economic growth.
The stakeholders made the call at a pre-summit event by the NESG on enhancing Nigeria‘s banking and payments system for effective financial inclusion. The aim is to raise awareness of the key challenges hindering Nigeria‘s banking and payment systems from achieving widespread financial inclusion.
The conversation focused on leveraging technology to enhance financial inclusion. Expanding digital financial services, promoting financial literacy, and developing innovative financial products tailored to underserved populations were identified as key priorities.
The various speakers agreed that a collaborative approach involving governments, financial institutions, fintech companies, and civil society is crucial to overcoming the challenges and ensuring that the benefits of financial inclusion are widely shared.
In his opening remarks, NESG board member, Mr Lanre Akinbo, highlighted Nigeria‘s complex financial landscape. With a population of 220 million (2021) and a vast network of financial institutions—comprising 33 deposit money banks, 887 microfinance banks, and 291 active fintech startups—the country‘s financial services ecosystem is expanding rapidly. Mobile phone usage reached 93% (103 million) in 2023, with 83% of adults now using digital financial services, up from 60% in 2020. Despite these advancements, cash remains the predominant means of transaction, especially in informal sectors.
Financial inclusion is essential for improving economic access and reducing poverty and inequality,“ Mr. Akinbo stated. However, he noted that breakdowns in financial infrastructure, low financial literacy, and dwindling trust in the system continue to undermine progress. The webinar focused on devising strategies to overcome these hurdles and create a more inclusive financial system that benefits the wider Nigerian economy.
Dr. Nurudeen Abubakar Zauro, Technical Adviser to the President on Development Finance and Financial Inclusion, delivered the keynote address. He emphasised the urgency for stakeholders to collaborate on fostering inclusive growth and addressing Nigeria‘s pressing economic needs.
Over 30 million Nigerians remain financially excluded, and only 6% of MSMEs are said to have access to financial credit, despite their importance to the economy. Dr. Zauro highlighted the need for high-level interventions and praised the current administration‘s commitment to financial inclusion, demonstrated through initiatives like student loans and consumer credit programmes aimed at underserved communities.
Dr. Zauro further emphasised the importance of subnational collaboration, referencing a signed accord between the presidency, sub-nationals, and the private sector to create a legal framework that enhances financial inclusion nationwide.
During the panel session, industry experts discussed the ongoing challenges and opportunities in the banking and payments sectors.
The national president of the Association of Mobile Money and Bank Agents in Nigeria, Mr. Fasasi Sarafadeen Atanda, outplayed how mobile platforms have transformed the nation‘s financial system. He outlined AMMBAN‘s efforts to partner with security agencies to combat fraud and promote grassroots financial inclusion through Neighborhood Financial Inclusion Centres.
Mr. Vincent Onwudinjo who represented the managing director/CEO of Accion Microfinance Bank, highlighted the importance of mobile penetration and financial literacy for MSMEs. He stressed the need for grassroots engagement to onboard users and deepen financial inclusion effectively.
Also, chairman of the committee of E-Banking Industry Heads, Mr. Ajibade Laolu-Adewale, discussed the need for improved collaboration between financial institutions to fight fraud and build trust. He highlighted the importance of a strong anti-corruption fund supported by donor agencies.
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