With nearly 40 percent of the adult population excluded from formal financial services, Nigeria faces a critical challenge that undermines economic growth and social equity. At a recent forum on digital transformation in Abuja, Dr Dominic Joshua, the visionary founder of Cultivate Africa and a respected innovator, consultant, and public policy analyst, issued a compelling call for a paradigm shift. He advocated for bold strategies to bridge the gap between underserved communities and financial services, emphasizing the transformative potential of mobile banking, fintech innovations, and regulatory reforms in driving inclusive economic development.
In his remarks, Dr Joshua emphasised that financial exclusion is not merely an economic issue but a social one that perpetuates inequality and stifles development. “When citizens are financially excluded, their ability to save, access credit, and participate in economic activities is severely hampered. This creates a cycle of poverty that digital transformation can break,” he asserted.
“The government and private sector must collaborate to ensure this foundational infrastructure is in place.”
Leveraging mobile technology for inclusion
Dr Joshua pointed to Nigeria’s high mobile phone penetration—projected to reach over 50 percent of the population by 2025—as a key driver for financial inclusion. He cited mobile money platforms as a game-changer, especially for rural and underserved communities where traditional banking infrastructure is absent.
“Mobile banking allows individuals to open accounts, transfer funds, and even access loans without ever stepping into a physical bank. Platforms like Paga, OPay, and others have already demonstrated the transformative potential of these technologies. However, the challenge lies in scaling these solutions to reach every corner of the country,” he said.
To achieve this, Dr Joshua recommended expanding broadband infrastructure and reducing the cost of internet access. “Affordable and reliable internet is a prerequisite for the success of mobile banking. The government and private sector must collaborate to ensure this foundational infrastructure is in place,” he explained.
The role of fintech in driving innovation
Dr Joshua lauded the contributions of Nigeria’s burgeoning fintech ecosystem, which has attracted over $1 billion in investment in recent years. He described fintech startups as the vanguard of financial inclusion, developing tailored solutions that address the unique needs of various demographics.
“From farmers in rural areas to small business owners in urban centres, fintech platforms are providing financial tools that were once inaccessible to these groups. For example, Paystack and Flutterwave are enabling seamless payment processing for businesses, while platforms like Farmcrowdy offer microloans to farmers,” Dr Joshua noted.
He also highlighted the importance of regulatory support in enabling fintech growth. “The Central Bank of Nigeria’s regulatory sandbox is a step in the right direction, allowing startups to test innovative solutions in a controlled environment. However, we need more agile policies that encourage innovation while protecting consumers,” he added.
Bridging the trust deficit
One of the key obstacles to financial inclusion, according to Dr Joshua, is the trust deficit between underserved communities and financial institutions. He proposed a multifaceted approach to building trust, including financial literacy programs and community engagement initiatives.
“When people understand how financial services work and see tangible benefits, they are more likely to adopt them. Financial literacy campaigns must be tailored to the cultural and linguistic contexts of the target audience to ensure effectiveness,” he said.
Economic implications of inclusion
Dr Joshua concluded by outlining the broader economic benefits of financial inclusion. “When people have access to financial services, they can save and invest, which drives economic growth. Businesses can access credit to expand, leading to job creation and increased productivity. The ripple effects are immense,” he stated.
He urged policymakers, financial institutions, and technology providers to work collaboratively toward achieving universal financial inclusion. “This is not just a moral imperative but an economic necessity. Digital transformation has given us the tools to make this vision a reality; now, we must act with urgency and purpose,” he said.
As Nigeria continues its quest to become a leading digital economy, Dr Joshua’s insights serve as a timely reminder of the transformative power of financial inclusion. His call for innovation, collaboration, and investment in digital infrastructure is a blueprint for a more inclusive and prosperous future.
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