The Nigerian Exchange Group (NGX Group) has restated its commitment to harnessing the power of fintech and collaborating with relevant stakeholders to contribute significantly to driving the sustainable development of the country and closing the financial inclusion gap.
The Group Chairman, NGX Group, Alhaji (Dr) Umaru Kwairanga, stated this at the Nigeria Fintech & Financial Inclusion Roundtable 2024 held on Friday, in Lagos.
Speaking on the topic titled ‘The Role of Fintech and Financial Inclusion in Citizen Empowerment and Economic Growth,’ Kwairanga noted that Nigeria’s financial inclusion rates had improved, yet still fell short of the targets adopted in the country’s 2012 national financial inclusion strategy and the revised NFIS 2018. Hesiad:
“As of 2021, financial inclusion stands at 64.1 per cent, according to EFInA’s findings. “While commendable progress has been made, projections by KPMG indicate it could take about 40 years to reach a 10 per cent financial exclusion rate, given the average reduction over the past decade.”
He noted that “the banking sector’s efforts have been complemented by non-banking institutions like Fintech, Mobile Money, Payment Service Banks, and supporting initiatives such as SANEF and digital IDs.
“However, challenges persist, particularly in closing the gaps for the youth, those with low educational attainment or income, and the urban-rural divide, where only 56 per cent are financially included in rural areas, higher than peer countries and the Sub-Saharan Africa region.”
Kwairanga stated that “despite these challenges, Nigeria has been at the forefront of the meteoric rise of fintech in Africa, fueled by a young and dynamic population, rapid smartphone adoption, a focused regulatory drive to increase financial inclusion and cash less transactions, and ample funding from venture capital.”
The NGX Group chairman emphasised that Nigerian fintechs had secured over $1 billion since 2018, and the country also led the unicorn counts in Africa with four out of seven, namely Interswitch, Flutterwave, OPay, and Andela.
“This is evident in the strong growth seen in Nigerian payments. According to the Central Bank of Nigeria, total electronic payment transactions in 2022 hit an astonishing N1,550 trillion, a remarkable 2,572 per cent rise from N58 trillion in 2017.”
