At the recently held Payment Forum Nigeria (PAFON 2.0) in Lagos, stakeholders emphasized the importance of collaboration among financial service providers, telecommunication operators, and tech startups, as well as increased consumer awareness, to tackle the pressing challenge of financial inclusion in Nigeria.
Key Insights from the Forum
1. Progress in Financial Inclusion:
Ebehijie Momoh, MD and CEO of AfriGoPay Financial Services, highlighted that 64% of Nigerian adults are now financially included. Significant regulatory reforms, particularly the introduction of the Bank Verification Number (BVN) in 2014, have enhanced confidence in formal banking systems.
2. Role of Technology:
The rise of smartphone adoption, with 142.16 million mobile internet subscriptions as of January 2025, has been pivotal in advancing financial inclusion. AI technologies are also transforming customer acquisition through efficient KYC verification tools.
3. Importance of Agent Banking:
Uche Uzoebo, MD/CEO of Shared Agent Network Expansion Facilities (SANEF), noted that agent banking has significantly expanded access to financial services for underserved communities, bringing critical banking products closer to the unbanked.
Barriers and Recommendations
During a panel discussion, industry experts identified key barriers to digital inclusion, including a lack of collaboration among fintechs and slow institutional adoption of AI.
- Ibirogba Oluwagunwa, chairman of the Lagos State Chapter of AMMBAN, stressed the need for improved communication and information sharing within the fintech ecosystem.
- Chika Nwosu, MD of PalmPay, called for consumer-centric approaches to product development to build trust and enhance user experience.
Embracing Emerging Technologies
Experts highlighted the potential of AI and blockchain technologies in promoting financial inclusion and security.
- Olusoji Solomon Adeyemo from Microsoft UK advocated for aligning with global tech trends, suggesting that these technologies can help provide exclusive digital identities and extend services to rural communities.
- Oluwabunmi Ogunyemi from Moniepoint MFB suggested combining physical and digital interactions to reach customers effectively.
A Call for Collaboration
Olusegun Afolabi, co-founder of Face Technologies UK Ltd., called for greater collaboration within the financial sector, emphasizing the need for effective identification solutions to enhance security.
Mr. Peter Oluka, co-convener of PAFON, noted that while financial access has improved, over 30 million adults remain excluded, particularly in rural areas. He emphasized the need for all stakeholders in the financial ecosystem to contribute toward creating a secure, inclusive financial environment.
In conclusion, PAFON 2.0 has reaffirmed the collective commitment of stakeholders to advance financial inclusion in Nigeria, driving efforts to leverage technology, collaboration, and effective communication. This platform continues to be crucial for shaping the future of digital payments and financial services in the country.
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