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.
Fidelity Bank Plc has recorded gross earnings of N315.4bn for the first quarter ended 31 March 2025, representing a 64.2 per cent increase from the N192.1bn reported in the corresponding period in 2024.
Nneka Onyeali-Ikpe, managing director and chief executive officer, Fidelity Bank,
According to the bank’s unaudited financial statements filed with the Nigerian Exchange Limited, the impressive performance was driven by significant growth in interest income, foreign exchange revaluation gains, and higher fee and commission income.
Interest and similar income calculated using the effective interest rate method rose by 58.1 per cent to N256.1bn in the period under review, up from N161.9bn in the same quarter of 2024.
Additionally, the bank earned N25.4bn from other interest and similar income, compared to N8.2bn in the corresponding quarter of the previous year.
Despite a 28.5 per cent increase in interest expense to N90.7bn from N70.5bn, net interest income climbed to N190.8bn, reflecting a 91.5 per cent growth from N99.6bn in the same quarter last year.
Fidelity Bank recorded a credit loss expense of N6.3bn, a decline of 49.2 per cent compared to the N12.4bn reported in Q1 2024. Consequently, net interest income after credit loss expense rose to N184.5bn from N87.3bn.
The bank also saw growth in its non-interest income. Fee and commission income increased to N23.8bn, up from N18.3bn in Q1 2024.
Foreign currency revaluation gains contributed N9.8bn to earnings, representing a 200.8 per cent increase from N3.3bn in the same period last year.
On the cost side, operating expenses remained elevated. Personnel expenses rose to N19.7bn from N14bn, while depreciation, amortisation, and impairment increased significantly to N8.7bn from N2.2bn. Other operating expenses also grew to N87.5bn from N52bn.
Despite the cost pressures, the bank posted a profit before income tax of N105.8bn, more than doubling the N39.5bn recorded in the same period last year. After a tax charge of N14.7bn, profit for the period stood at N91.1bn, marking a 190 per cent increase compared to N31.4bn reported in Q1 2024.
Earnings per share rose to 181 kobo from 98 kobo in the corresponding quarter.
The bank’s total comprehensive income for the period rose to N101.6bn, up from N35.8bn in Q1 2024, bolstered by exchange differences on translation of foreign operations and revaluation gains on debt instruments.
Securities and Exchange Commission (SEC) has uncovered another suspected illegal investment platform identified as TOFRO.COM (Tofro).
The commission raised the alarm in a notice issued on Thursday and made it available to the newsmen.
The commission warned Nigerians against falling for their tactics to obtain money from them through the promise of unusually high returns.
SEC said that the suspected investment platform holds itself out as a cryptocurrency trading platform, adding that such an investment scheme is not registered by the commission.
It said that based on its investigations, Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme.
According to the SEC, it promises unusually high returns, heavy reliance on a referral system to sustain payouts, and failure to honour withdrawal requests from subscribers.
SEC, however, strongly advised Nigerians to be wary about investing with Tofro, noting that any person who places such an investment with the entity does so at their own risk.
The notice reads, “The attention of the Securities and Exchange Commission has been drawn to the activities of an online platform known as TOFRO.COM (Tofro), which holds itself out as a cryptocurrency trading platform.
“The Commission hereby informs the public that the Tofro is NOT REGISTERED by the Commission either to solicit investments from the public or operate in any other capacity within the Nigerian capital market.
“Investigations have revealed that Tofro’s operations exhibit the typical indicators of a fraudulent Ponzi scheme, including the promise of unusually high returns, heavy reliance on a referral system to sustain pay-outs and failure to honour withdrawal requests from subscribers.
“Accordingly, the public is strongly advised to be wary about investing with Tofro, as any person who places such investment with the entity does so at his/her own risk.
“The Commission similarly reminds potential investors of the need to VERIFY the registration status of investment platforms via the Commission’s dedicated portal: www.sec.gov.ng/cmos before transacting with them.”
The Development Bank of Nigeria (DBN) has received shareholders’ approval to invest $2.5 million or 25% equity stake in the proposed Youth Entrepreneurship Investment Bank (YIB) — a new investment vehicle designed to provide equity funding to youth-led businesses in Nigeria.
The approval came during the bank’s 8th Annual General Meeting (AGM) which was held in Abuja.
The move is a strategic step aligned with the bank’s broader mission to support Micro Small and Medium Enterprises (MSMEs), job creation and entrepreneurship among Nigeria’s youth.
According to Tony Okpanachi, DBN Managing Director, Youth Entrepreneurship Investment (YIB) is not a conventional bank. It is an investment vehicle that will deploy equity into promising youth-owned enterprises.
“This is about backing ideas and unlocking growth through long-term capital — not debt,” Okpanachi told journalists after the AGM.
The initiative is a partnership between DBN, the Nigeria Sovereign Investment Authority (NSIA), and the African Development Bank (AfDB), with additional backing expected from development finance institutions.
The African Development Bank (AfDB) is currently in discussion to provide debt financing, which would bolster the capital available to the vehicle without diluting equity.
“This $2.5 million is DBN’s initial stake,” Okpanachi said. “We are co-investing alongside NSIA, and this sets the stage for broader institutional participation — both local and global.”
YIB aims to fill a critical funding gap in Nigeria’s startup ecosystem. While the country has a vibrant pool of young entrepreneurs, access to early-stage funding remains limited. Many businesses rely on short-term loans or informal capital, which often constrains scalability and long-term planning.
Okpanachi emphasised that YIB’s structure is deliberately designed to avoid the trappings of a traditional bank.
“This is not a commercial bank. It won’t provide loans or open retail accounts. It’s structured purely as an equity-focused investment vehicle, targeting scalable ventures with strong fundamentals and youth ownership”, he noted.
This will be DBN’s second strategic investment following the establishment of its wholly owned impact credit guarantee subsidiary, which offers partial credit guarantees to MSMEs.
Final structuring of YIB is underway. Following the shareholder greenlight, the promoters are now coordinating with the relevant stakeholders to complete incorporation, legal frameworks, and capital mobilisation.
“We expect all groundwork to be finalised by the end of this year. With operations likely to begin by early 2026,” Okpanachi disclosed.
The move comes amid growing concerns over Nigeria’s rising youth unemployment rate.
By investing directly into youth-led businesses, DBN and its partners aim to accelerate job creation, promote innovation, and catalyse broader economic development.
“There’s already strong interest from global players,” the MD noted, though he declined to name institutions due to ongoing negotiations.
“What we are doing is laying the foundation. YIB will serve as a credible, well-structured platform to crowd in institutional capital and scale youth-driven entrepreneurship.”
He added that YIB is not a one-off initiative but part of a long-term strategy to create sustainable investment channels focused on Nigeria’s demographic dividend.
“This is more than a financial transaction,” Okpanachi said. “It is a statement of intent. We believe in the entrepreneurial potential of Nigerian youth — and we are backing that belief with real capital.”
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