Business Hilights
Tracking Nigeria's Headline Business News Online

Mckinsey & Co official reveals 3 factors shocking financial inclusion in Nigeria

Three key obstacles have been identified as major challenges in the effective penetration of financial inclusion in Nigeria. The factors, according to an Associate Principal at Mckinsey and Company, Ms. Topsy Kola Oyeneyin, are “widespread digital infrastructure, dynamic financial services market and the development of products people prefer to existing alternatives”.

In her presentation on ‘Opportunities in Digital Financial Inclusion’, at a forum organised by Enhancing Financial Innovation and Access (EFInA) in Lagos, funds from DfID and Bill and Melinda Gates Foundation, she noted that “there is huge potential for digital involvement in Nigeria’s financial services, but this can only be attained if the three required building blocks are put in place.”

She explained that time has come for the government to partner with telecoms Infrastructure Companies (Infracos) to increase the delivery fibre optic cable that will drive broadband penetration.

She argued that as far as internet access are only available at a high cost in cities where majority of residents are already covered or included in the financial stream, getting rural dwellers without affordable internet in their domains means further postponement of financial inclusion.

She said broadband is key to any kind of efforts towards driving financial inclusion and this can be assisted with the way and manner the Financial Service Providers (FSPs) are coming up with dynamic financial services that are efficient and affordable.

Earlier, EFInA’s Board Chair, Segun Akerele said, that the “essence of the forum was to request information from FinTechs on how EFInA can stimulate innovation targeted at the financially excluded through its grants, advocacy, research and capacity building.”

He addressed over 40 different Fintech companies, regulators and digital financial service consultants that attended the forum.

Akerele also appealed to the forum to see the financially excluded as partners and an asset in our bid to boost economic growth and increase GDP.

Business Hilights recalls that EFInA was launched in 2009 to target the economically deprived population in raising their consciousness in financial inclusion with momentary funding via grants through the Technical Assistance Grant and the Innovation Grant to the amount of $250,000 and $2,000,000 respectively.