Nigeria Exchange Group (NGX Group) reiterates its commitment to harnessing the power of fintech and working with all stakeholders to make a significant contribution to driving the country’s sustainable development and closing the financial inclusion gap did.
NGX Group Chairman, Umaru Kwairanga, said this at the Nigeria Fintech & Financial Inclusion Roundtable 2024 held in Lagos on Friday, April 26, 2024.
Speaking on the theme “The Role of FinTech and Financial Inclusion in Citizen Empowerment and Economic Growth”, Kwairanga said that although Nigeria’s financial inclusion rate has improved, the 2012 National Financial Inclusion Strategy and its revised He pointed out that the target had not yet been reached. NFIS2018.
“According to EFInA findings, the financial inclusion rate is 64.1 per cent as of 2021,” Kwairanga said. “While commendable progress has been made, KPMG forecasts that it could take around 40 years for financial exclusion rates to reach 10%, given the average reduction rates over the past decade.”
He said: “The banking sector's efforts have been complemented by non-banking institutions such as fintech, mobile money and payment services banks, as well as supporting initiatives such as SANEF and digital ID.”
“However, challenges remain, particularly in bridging the gap between young people, people with lower educational attainment and income, and urban-rural disparities, including those economically included in rural areas. Only 56% of people in the country and the sub-Saharan Africa region.
Mr. Kwairanga said, “Despite these challenges, Nigeria has a young and dynamic population, rapid smartphone penetration, focused regulatory push to increase financial inclusion and cashless transactions, and abundant capital. This has put us at the forefront of the rapid rise of fintech in Africa.” From venture capital. ”
The NGX Group chairman said that Nigerian fintech companies have secured more than $1 billion since 2018, and the country ranks first in the number of unicorns in Africa with four out of seven companies: Interswitch, Flutterwave, OPay and Andela. He emphasized that
“This is evident in the strong growth in the value of payments in Nigeria. According to the Central Bank of Nigeria, total electronic payment transactions will reach an astonishing N1,550 trillion in 2022, an increase of 2,572 percent from N58 trillion in 2017. That's an amazing number.”
He said NGX Group is strategically focused on leveraging this fintech's success in the capital markets. Recognizing the potential of fintech to increase the participation of retail investors, the Group is committed to ensuring that the average Nigerian can benefit from the myriad opportunities available for wealth creation in the capital markets. That's what I'm aiming for.
“We are also working with technology companies and partners to develop a cutting-edge platform to support digital public offerings. Over 150,000 new retail investors entered the capital market during the 2021 MTN initial public offering. Our track record in this field is commendable.”
He will encourage policymakers and regulators, particularly the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), to create a regulatory environment that has the potential to foster innovation while safeguarding consumer protection and financial stability. Praising the efforts, he said, “public-private collaboration is being strengthened.'' Partnerships are critical to developing and implementing strategies to promote financial literacy and digital skills and ensure no one is left behind in the digital revolution. ”
