Olayinka David-West on how Nigeria can achieve its financial inclusion targets

According to a report by the Central Bank of Nigeria, the three important drivers of financial exclusion are lack of income, lack of education, and low trust in Financial Service Providers. So how can Nigeria navigate its way through these hurdles to achieve its financial inclusion targets? Professor Olayinka David-West, an Academic Director and a Professor of Information Systems at the Lagos Business School joins CNBC Africa’s Christy Cole for more.

Fri, 02 Oct 2020 10:10:15 GMT

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AI Generated Summary

Financial literacy and education are essential in empowering individuals to make informed financial decisions and bridging the gap between knowledge and access to services.
Technological advancements play a crucial role in driving financial inclusion, but challenges such as liquidity and sustainability for service providers remain in reaching the unbanked population.
Public-private partnerships are key to deepening financial inclusion in Nigeria, requiring collaboration and innovative approaches to cater to the diverse needs of the population.

Nigeria, like many developing nations, has set its sights on achieving financial inclusion targets to ensure that all citizens have access to essential financial services. In a recent interview on CNBC Africa, Professor Olayinka David-West, an Academic Director and Professor of Information Systems at the Lagos Business School, shed light on Nigeria's journey towards financial inclusion and the challenges that lie ahead. Starting from the rural banking scheme in 1977 to the introduction of mobile money operators and the creation of a national financial inclusion strategy in 2012, Nigeria has made significant strides in expanding financial services to underserved populations. However, there are still hurdles to overcome, such as low income levels, lack of education, and low trust in financial service providers. These hurdles can be addressed through innovative solutions and collaboration between the public and private sectors. One key aspect highlighted by Professor David-West is the importance of financial literacy and education in bridging the gap between knowledge and access to financial services. By providing citizens with the tools and information to make informed decisions, Nigeria can empower individuals to take control of their financial health. Additionally, developing simple and user-friendly products tailored to the needs of the market is essential in ensuring widespread adoption. Technological advancements play a crucial role in driving financial inclusion. While Nigeria has seen the rise of financial technology companies and mobile money solutions, there is still a significant gap in reaching the unbanked population. The challenge lies in not only providing access to financial services but also addressing liquidity challenges and ensuring sustainability for service providers, especially in rural areas. Public-private partnerships are key to deepening financial inclusion in Nigeria. By leveraging the strengths of both sectors and fostering collaboration, Nigeria can create a more inclusive financial ecosystem that caters to the needs of all citizens. As Professor David-West emphasizes, there is no one-size-fits-all solution to financial inclusion. It requires a multifaceted approach that involves political will, business strategies, resources, and capacity building. By working together towards a common goal, Nigeria can unlock its full financial inclusion potential and pave the way for a more inclusive and resilient economy.