FG eyes financial inclusion initiatives to strengthen Nigeria’s formal economy

The federal government has disclosed plans to focus on financial inclusion initiatives to drive the growth of Nigeria’s formal economy.

Bosun Tijani, the minister of communications, innovation and digital economy, disclosed this during the launch of the Kayi bank App in Abuja, stating that the government can leverage financial inclusion initiatives to bring more people into Nigeria’s formal economy.

According to him, promoting financial inclusion is vital in alleviating poverty as it grants citizens access to financial instruments, such as savings and credit. “You know, we are not a strong credit economy; even though we may not like it, in most developed societies, access to credit allows people to access services that are critical to them so that they can manage their finances as well.

“Also, there is an opportunity for digital innovation because when people are financially included, it creates a chance for innovators and entrepreneurs to develop new products and services that people can pay for. And by doing so, we deepen the complexity of our economy, which is how we become a great nation.

“This is why financial inclusion is essential. The other reason is that when individuals have access to banking services, they are less likely to resort to risky and informal financial practices. I’m sure you recognize that when people don’t have access to credits and financial services, they have to take loans from people asking them to pay significant interest. And by doing so, they will continue to be in poverty.

“So what we are launching today, in my mind as the minister of communications, innovation of digital economy, is a strong contribution to that mandate of inclusive growth because there can be no economic growth without financial inclusion,” he said.

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The minister further said that driving financial inclusiveness in a country like Nigeria has become imperative as most of the population were entrepreneurs. For him, there’s no way the Nigerian economy can grow without entrepreneurs.

“When we hvitalrong financial inclusion in society, it can foster entrepreneurship and growth of small scale businesses because with it, they quicklysily gain access to cr,edit and this can help them to grow their businesses, as they grow their businesses, they create job opportunities as well in society.

“For those of you who follow the trajectory of our GDP, you will recognize that agriculture contributes significantly to our economy. Good financial inclusion will ensure that farmers have access to resources they need as inputs. another important reason why financial inclusion is important is the more people who can access financial services, the higher financial literacy will be in our country.”

In his remarks, Abdulganiyu Rufa’i, the product team lead, noted that the aims aims to meet the country’s digital payment industry’s needs by delivering core services and solutions such as instant digital payments for individuals and businesses.

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According to him, the App would deepen financial inclusion and social banking for people in rural and semi-urban areas, aid trade for exporters and importers across Africa and remittances and investments for Nigerians and Africans in the Diaspora.

He said, “The African fintech market is brimming with opportunities, and Kayi App is poised to make a significant impact. With the vast majority of Africans unbanked and under-banked, we are confident in our ability to meet the growing demand for digital financial services across Africa.

In his remark, Yunusa Mohammed, the managing director of Kayi Bank, stated that the App will boost the activities of small businesses in Nigeria.