Hot SourceNume Ekeghe
Chief Executive Officer of Enhancing Financial Inclusion and Advancement (EFInA), Mrs. Foyinsolami Akinjayeju, has stressed that affordable credit and the rapid expansion of fintech solutions are crucial to deepening financial inclusion in Nigeria.
She added that the eventual rollout of the Central Bank of Nigeria’s (CBN) Open Banking framework will further strengthen access to innovative financial services.
Speaking at EFInA’s hybrid Access to Finance (A2F) Stakeholder Engage-ment Workshop in Lagos, which brought together regulators, banks, fintech operators, development partners and policy makers, Akinjayeju said digital finance has become a strong driver of inclusion.
According to her, more Nigerians are turning to mobile banking platforms, agent networks, remittance channels and digital payments to meet daily needs, and these will be instrumental to achieving broader financial inclusion.
Speaking on the sidelines at the workshop, Akinjayeju said: “I expect to see positive progress in financial inclusion, driven largely by fintechs and digital services. More and more people are engaging through mobile banking, agent networks, remittance platforms and digital payments. These will be instrumental to growth in inclusion.”
Nigeria’s financial inclusion rate stood at 74 per cent in 2023, with 64 per cent formally included, according to EFInA’s last survey. However, Akinjayeju cautioned that inclusion should not be measured only by access but also by consistent usage and the extent to which it improves lives.
She expressed concern over the decline in Nigeria’s financial health index, which dropped from 28 per cent in 2020 to 16 per cent in 2023, reflecting the inability of many households to save, plan, or manage risks. She warned that the trend could persist if economic headwinds continue to pressure families.
She identified affordable credit and insurance as the weakest points in the financial inclusion landscape. On the demand side, cultural aversion to borrowing and distrust of financial institutions remain barriers, while on the supply side, affordability continues to limit access.
She added: “Affordability is very key. How do we get credit affordable? Of course, the federal government has a role to play, and there are initiatives around credit enhancements and credit guarantees designed to push credit to the last mile at an affordable rate. What we need now is scale. If these efforts remain small and uncoordinated, they will never reach the millions who need them, and the affordability problem will persist. That is why we must also focus on literacy helping people understand that just as there is good credit, there is also bad credit.”
On the much-anticipated Open Banking policy, Akinjayeju noted that although the CBN has released the draft framework, implementation has not yet commenced. She described it as a transformative policy that can provide alternative ways of assessing creditworthiness and broadening access to financial services.
“Open Banking is a phenomenal initiative. With customer consent, it allows financial providers to use alternative data such as airtime or utility payments to assess creditworthiness. This could help millions without traditional histories access credit,” she explained. She, however, stressed that consumer trust, safety and data protection must be prioritised before rollout.
“The fine details around security are being addressed. Once implemented, Open Banking can support affordable credit, drive innovation, and help reduce exclusion,” she added.
EFInA CEO also underscored the importance of the national Access to Financial Services survey, which EFInA coordinates but regards as a national asset. She explained that the stakeholder workshop was designed to refine the questionnaire, align on priorities, and ensure it captures real needs and motivations. According to her, the ultimate goal is to generate data that is useful at federal, state, institutional and community levels in guiding policies to close existing gaps.
The post EFInA: Affordable Credit and Fintechs Key to Deepening Financial Inclusion appeared first on THISDAYLIVE.
