Enterprise Growth: Key Driver Of Financial Inclusion
In the dynamic landscape of Nigeria's financial sector, the clarion call for financial inclusion
resonates as a key driver of sustainable economic growth. Financial inclusion which has to do
with accessibility and availability of financial services for all irrespective of income levels, holds
the potential to revolutionize the economic fortunes of individuals and the nation at large.
As Nigeria strives for economic diversification and increased global competitiveness, the
importance of integrating all citizens into the formal financial system cannot be
overemphasized. The World Bank Group considers financial inclusion “a key enabler to reduce
extreme poverty and boost shared prosperity.”
One of the important benefits of financial inclusion is the empowerment of marginalized
communities. Providing access to basic financial services such as digital wallets, Point-of-Sale
(POS) solutions and microcredit to individuals in rural and underserved areas, can break the
shackles of poverty.
This empowerment is a catalyst for entrepreneurship, thereby fostering the growth of micro,
small and medium-sized enterprises (MSMEs) that are pivotal to the nation's economic fabric.
As more Nigerians gain access to financial resources, a national entrepreneurial spirit is kindled,
leading to job creation and a more resilient and diversified economy.
In June this year, the Central Bank of Nigeria said it had achieved 64.1 per cent financial
inclusion. This was made known by the Assistant Director, of Financial Development, of the
Central Bank of Nigeria, Paul Oluikpe. He also said the Apex Bank was targeting 95 per cent
inclusion by 2024.
Initially, the CBN launched the National Financial Inclusion Strategy in 2012 with the aim to
reduce financial exclusion to just 20 per cent of the adult population by 2020. This meant a
target of 80 per cent inclusion. Unfortunately, Nigeria is yet to achieve that feat.
Recognising the need and opportunity for advancing financial inclusion in Nigeria through
digital finance, in 2018, the Central Bank of Nigeria (CBN) introduced a new type of banking
license, – Payment Service Banks (PSBs). With PSBs, the CBN aims to leverage the strengths of
businesses such as mobile network operators while maintaining a bank-led rather than a
telecoms-led banking model. This move is a testament to the relentless commitment of the
regulator in driving financial inclusion.
The PSBs and Agency Banking outfits have a major role to play in penetrating rural locations to
drive adoption of banking services among the underserved and unbanked especially the
MSMEs.
The role of these MSMEs cannot be over emphasized. According to a report by National
Information Technology Development Agency (NITDA), it states that MSMEs contribute about
43% to the national GDP and it is expected to grow by 26% if their services are digitized,
thereby contributing about $53bn to the nation’s economy. It is critical for these economy
drivers to be empowered to scale. It is important for their transactions and businesses to be
captured within the formal economy and these can be achieved through digitization and
continuous innovation.
My experience working with a technology and digital payment solutions company has shown
that the increased adoption of innovative solutions such as Buy Now Pay Later (BNPL) services,
digital wallets and Point-of-Sale (POS) solutions are necessary to deepen financial inclusion in
the country and even across the continent.
Innovations such as Buy Now Pay Later (BNPL) services, digital wallets and Point-of-Sale (POS)
solutions will avail entrepreneurs opportunities to expand their customer base, reach new
markets, and participate more actively in the formal economy, contributing to job creation and
economic growth.
Empowering entrepreneurs through cutting-edge solutions as these will open new avenues for
expanding customer outreach, tapping into fresh markets, and fostering active participation in
the formal economy. This dynamic integration not only fuels job creation but also propels
economic growth, reinforcing a future where innovation becomes the cornerstone of
sustainable progress.
At Interswitch, where I have plied my trade as an enterprise growth marketing professional for
three years, our commitment to digital payment solutions is a pivotal step towards fostering
financial inclusion and unlocking opportunities for every citizen. By harnessing the
transformative power of digital transactions, we aim to bridge economic gaps, empower the
unbanked, and catalyze sustainable growth. Through our innovative approach, we envision a
financially inclusive continent where digital payments serve as a catalyst for prosperity, creating
a more accessible and equitable financial landscape for all.
Furthermore, as Nigeria positions itself as a regional economic powerhouse, the importance of
an inclusive financial system cannot be overstated in attracting foreign investment. A robust
and inclusive financial sector signals to global investors that Nigeria is committed to creating an
environment conducive for economic growth.
The importance of financial inclusion in driving the growth of Nigeria's financial industry is not
just a matter of economic policy but a bedrock for sustainable development. As the nation
strives for economic prosperity, ensuring that every citizen has access to and can participate in
the formal financial system is critical.
However, to achieve the desired outcomes of a more inclusive Nigeria, payment industry
players will do well to channel measured and deliberate efforts towards improving digital
financial literacy regionally, upgrading digital infrastructure, deploying digital solutions based
on relevant use case, and working closely with regulators to create
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