E-Financial
Experts Identify Ways to Extend the Boundaries of Financial Inclusion Strategy
Experts at the Inclusive Finance Nigeria Conference and Awards [IFINCA] have identified the various ways the Central Bank of Nigeria [CBN] can extend the boundaries of financial inclusion strategy in order to realise its goal.
In a circular, the CBN had said it is not meeting any of the financial inclusion target agreed and contained in the 2012 Financial Inclusion Strategy.
IFINCA is a national policy platform on financial inclusion setup with the objective of enabling cross-pollination of best practices and breakthroughs, specifically to influence Nigeria’s financial inclusion strategy and campaign.
According to the CBN, Nigeria achieved 60.3 per cent in 2012. It declined to 58.4 per cent in 2016 against a target of 69.5 per cent, which translated to financial exclusion of about 41.6 per cent.
However, to ensure the CBN achieve its policy thrust, the analysts who spoke at IFINCA said it’s important to ensure that the under-banked and the unbanked are offered inclusive financial services.
In her keynote address at the event, Ronke Kuye, managing director/CEO of Shared Agent Network Expansion Facility [SANEF], identified the following major service areas that are required in order to deepen financial inclusion in the country.
These are the provision of sustainable job opportunities, stronger bank operation, reduction of inequality, creation of empowerment programmes, reduction of formal financial services and a boost in financial security and operation.
While addressing the theme of the event, which asked, is it time to reinvent and push the boundaries; she noted that for the financially excluded to be brought into the financial net, certain initiatives must be adopted.
Kuye informed that the CBN is making an effort to ensure that financial inclusion target is met by initiating the mobile money agents, SANEF and agency banking services. Through the initiatives, SANEF had rolled out 156,000 agents. To meet its target of 250,000 agents, SANEF is required to capture another 94,000 agents before the end of 2019.
The impediments that are slowing down the wheels of financial inclusion in Nigeria, according to her, include high cost of banking transaction, lack of attractive financial products, inadequate financial literacy programmes, poor customer service, inadequate infrastructure and cumbersome banking process.
To overcome these impediments, she explained that the industry stakeholders must close ranks and work together and create sustainable synergies that will promote financial inclusion.
“All the regulators and central service providers, agency banking such as SANEF and other developmental organization, super agents, fintech and telcos and the microfinance banks, state governments and the security agencies must work together in order to bring the Nigerians that are excluded into the financial ecosystem”, she said.
Mrs Titilola Shogaolu, Divisional CEO of Interswitch Financial Inclusion Service, while proffering on what’s still missing in financial inclusion in Nigeria, she said “there’s an existing gap despite various initiatives that have been deployed by relevant stakeholders”.
She therefore identified lack of identity card, which is needed for bank accounts opening as a barrier to digital financial inclusion. She said the following must be implemented to achieve financial inclusion in Nigeria.
These are maximum security, alignment and collaboration, provision of simple financial service, attractive benefits, building trust, financial literacy and creation of the multi-lingual channel.
Speaking on the yardsticks for measuring financial inclusion, Oluwadare Owolabi, managing director/CEO of Xpress Payments Solutions, said the results and goals of financial inclusion could only be measured through the provision of access to affordable financial service that meet people’s needs, secured financial services, the establishment of proper financial institutions that cater to the needs of the poor and the use of agency banking.
He identified “access indicator” – the number of bank branches, PoS devices, number of bank accounts and remittances, banking agents, loans and savings with the banks, level of literacy among others – as an important means to deepen financial inclusion and bring more Nigerians into the formal financial service.
Olaoluwa Awojoodu, managing director/CEO of E-Settlement and of Paycentre, in his presentation on the viability of agent banking networks stressed that the challenges facing financial inclusion must be pulled down before the CBN achieve its goals.
He listed these challenges as the unavailability of affordable banking services, threesome documentation and onboarding process, low literary level, non-presence of banks in a rural area and “negative view of banks as being overly complex”.
He said his team carried out a survey and realized that many local areas lack access to financial services, adding that 80 per cent of the banks in Nigeria are sited in Lagos while other states are suffering. “We need to tackle these barriers in order to promote financial inclusion for suitable economic development”.
Explaining how the banks can apply themselves to extend the boundaries of financial inclusion while speaking during the Future of Financial Inclusion panel sitting, the Managing Director and CEO of Precise Financial Systems, Dr Yele Okeremi noted that Nigerians are not interested in the banks but in banking services; as such, the banks must “reengineer their minds by deploying technological innovations that will make them lead the space”, he emphasized.
In similar vein, Nnaemeka Nwachukwu, Head, Executive Support and Corporate Strategy of Grooming Centre, delved into how technology is disrupting the financial inclusion space and redefining all sectors of the economy.
He said Grooming has completed the bank processor information to boost financial inclusion and that the motive is to work optimally with technology and address challenges facing financial inclusion.
“There are technological infrastructure deficiencies in the rural part of the country which we are working towards addressing by partnering with major stakeholders in the industry. We are also training some Nigerians on how to use some technology especially software to access data. But the industry needs to do more”, he noted.
Federal government has said that it has begun a revalidation exercise of the National Social Register in a drive to strengthen the ongoing conditional cash transfer programme designed to ameliorate the impact of economic reforms.
Abisoye Coker-Odusote, DG/ CEO, NIMC
Up-to-date, a total of 2.3 million households have been confirmed and cleared for payment under the renewed scheme.
Abisoye Coker-Odusote, director general, National Identity Management Commission (NIMC), made this known at a recent press briefing held at the agency’s headquarters in Abuja.
The revalidation exercise comes amid concerns raised by the World Bank over the slow implementation of the cash transfer programme, which was launched in 2023, following the removal of petrol subsidy and unification of the foreign exchange market.
In its latest Nigeria Development Update report titled “Building Momentum for Inclusive Growth”, the global financial institution observed that only 37 per cent of the intended 15 million households, approximately 5.6 million had so far received payments two years after the programme was launched.
The World Bank had approved a $800m loan for the initiative, out of which $530m had been disbursed as of April 30, 2025.
The World Bank said, “Only 5.6 million households—around 37 per cent—have received at least one tranche of direct transfers. Further expansion of the programme remains dependent on biometrically verifying at least one adult member of the household with a foundational digital identity. Also, efforts to urgently provide support to the poorest and most economically at-risk households should be redoubled and expanded,” the bank noted.
Coker-Odusote, who is a member of the inter-agency task force managing the identity verification process for the programme, noted that the revalidation was being carried out under the National Social Safety Nets project to ensure that only eligible Nigerians benefit from the government’s palliative initiative.
“The Federal Government is currently conducting a revalidation exercise on the national social register under the National Social Safety Net, so that they are able to carry out the payment,” she said.
“As of Tuesday, we have been able to revalidate 2.3 million persons and will soon be able to start making the necessary payments. Our job is to ensure the number of people validated, and we are doing that in conjunction with other agencies to make sure that the money goes to the right people.”
She stressed the importance of accurate identity verification in delivering targeted interventions, noting that the exercise is rigorous to avoid misallocation of funds.
“We don’t want to pay people who no longer exist in this world. So, the right thing must be done, and I want to emphasise that.
“This is the reason for identity, ensuring there is a verifiable source of truth and identity credentials that you can use to validate the identity of someone, and that person can also use it to authenticate who he or she says, they are in real time,” she added.
MTN’s BankTech platform disbursed $592 million in loans during the first quarter of 2025, setting a new record for the telecom operator’s digital lending business since its launch in August 2023.
MTN
The figures, released in MTN Group’s financial reports, highlight the accelerating adoption of mobile-based credit solutions across Africa.
The strong performance reflects growing demand for accessible financial services in markets where traditional banking penetration remains low.
BankTech operates as MTN’s banking-as-a-service platform, providing application programming interfaces that enable third-party fintech firms and businesses to integrate lending, savings and insurance products into their ecosystems.
Ghana, Uganda and Cameroon emerged as key growth markets, driving much of the platform’s expansion.
The Q1 results continue a consistent upward trajectory, building on disbursements of $371.7 million in the first quarter of 2024, followed by $359.9 million, $461.5 million and $546.8 million in subsequent quarters last year.
MTN’s move into digital lending follows earlier innovations by regional telecom operators including Safaricom’s M-Shwari in Kenya and Airtel Money Loans across East Africa.
These mobile-based services have collectively created a $247 million consumer lending marketplace, addressing portions of Africa’s estimated $782 billion credit gap.
The increasing loan volumes suggest shifting consumer attitudes toward telecom-driven financial solutions, which many now view as viable alternatives to conventional banking services.
This trend underscores the transformative role mobile networks are playing in financial inclusion across the continent.
As digital lending platforms gain traction, regulators face the dual challenge of fostering innovation while implementing safeguards for consumers.
The growth of services like BankTech indicates telecom companies will likely remain central to Africa’s financial services evolution, particularly for underserved populations and small businesses needing access to credit.
The platform’s expansion comes amid broader efforts to bridge Africa’s credit gap through technology-driven solutions. With mobile money adoption continuing to rise across the continent, digital lending services appear poised for further growth as they demonstrate their ability to reach customers traditionally excluded from formal financial systems.
As global financial fraud surges to over $485 billion in annual losses, Access Holdings PLC is setting a new standard in Africa’s banking industry through aggressive and strategic investment in technology aimed at combating the growing threat. With Nigeria’s financial sector experiencing a spike in digital fraud, particularly through mobile and online channels, Access Holdings has emerged as a front-runner in fraud prevention through innovation.
In 2024, Access Holdings, the parent company of Access Bank, recorded a landmark ₦193.5 billion ($120.5 million) in technology investments, a 147% increase over the previous year and the highest IT spend in Nigeria’s banking industry. This bold move has paid off significantly. The Group reported a 73% drop in fraud-related losses, falling from ₦6.15 billion in 2023 to just ₦1.64 billion in 2024.
“Our customers’ trust is our most valuable asset,” said Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc. “In a world of rising digital risks, we have chosen to lead with innovation and resilience. Our sustained investment in cybersecurity, AI-driven fraud detection, and biometric authentication is delivering real results, and reinforcing confidence in our digital banking platforms.”
Globally, banks like JPMorgan Chase are increasing technology budgets to combat fraud, with a record $17 billion in 2024. Nigeria is not left behind. Among local peers, Access Holdings has demonstrated the strongest correlation between strategic tech spending and measurable fraud reduction.
Access Holdings’ investments include AI-driven transaction monitoring, biometric verification systems, enhanced core banking upgrades, and real-time fraud analytics, all designed to detect and respond to threats with speed and precision.
While digital innovation is expanding access to banking, it has also exposed customers and institutions to evolving threats. According to Nigeria Inter-Bank Settlement System (NIBSS) data, fraud incidents in the country jumped 112% from 2019 to 2023, underscoring the urgent need for systemic countermeasures.
Access Holdings’ proactive stance not only affirms its leadership in Nigeria’s digital banking landscape but also offers a compelling model for financial institutions across Africa looking to secure trust in an increasingly digital world.
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