Toluwalope made the call during a stakeholders’ engagement themed “Shaping the Future of Payments: Balancing Regulation and Innovation,” where he highlighted the structural gaps in Nigeria’s credit and identity ecosystem.

According to him, predatory lending continues to flourish because many Nigerians urgently need funds during emergencies and are forced to accept loans at exorbitant and unsustainable interest rates.

“The people making money are lending to those who desperately need it now. They take loans at impossible rates because they are desperate, and then they can’t meet up,” he said.

He stressed that Nigeria must deliberately build a system that allows people with regular and identifiable income, such as security guards, drivers, and other salary earners to access legitimate credit.

“Let’s create a system where anybody with regular, identifiable income can access credit, so that the emergency loan shark model naturally disintegrates,” Toluwalope said.

The eTranzact CEO described the Bank Verification Number (BVN) as Nigeria’s most reliable financial database, noting that it has matured over time and remains secure because it is closely tied to financial transactions.

“The BVN is a fantastic database. It’s matured, it’s secured, and because it’s tied to money, people pay attention to it,” he said.

However, he argued that Nigeria must go beyond BVN by strengthening and expanding the National Identification Number (NIN) framework to create a unified national identity system that links individuals to income and location.

Drawing a comparison with developed economies such as the United States, Toluwalope noted that credit systems thrive where financial footprints are fully traceable.

“In the US, your social security number, credit score, title, and everything you do are tracked across the 50 states. You can’t run anywhere; it will come up,” he explained.

Toluwalope also advocated for the tokenization of identity to eliminate repetitive Know Your Customer (KYC) processes across banks and financial institutions.

“Why do I have to submit the same KYC every time I open an account? Let’s tokenize identity and secure it with OTP,” he said.

He added that a system where identity data is updated automatically whenever changes occur would support credit cards, utilities, and other financial services, while strengthening trust, accountability, and financial inclusion in Nigeria.

Speaking on the report during the launch, the Managing Director/CEO of eTranzact International Plc, Mr. Niyi Toluwalope, said as a leading fintech company, eTranzact views Artificial Intelligence not as a distant prospect but as an immediate opportunity for Nigerian businesses.

“This research bridges the knowledge gap by helping SMEs understand their current AI adoption status and what they need to compete both locally and globally,” he stated. The study also reinforces eTranzact’s expanding role as an enabler of digital growth and innovation beyond just payments, he noted. 

Explaining further, eTranzact CEO said the report offers SMEs a fact-based assessment of their AI readiness, guiding informed investment and capacity-building decisions. 

For Nigeria, he said, the findings serve as a strategic blueprint to enhance competitiveness, job creation, and innovation-driven economic growth.

Mr. Toluwalope highlighted that policymakers, financiers, and educators will be better equipped with data in the report to design support programs tailored to SME needs.

The comprehensive study, conducted over several months across key regions including Enugu, Kano, Lagos, Abuja, and Port Harcourt, highlights the current state of Artificial Intelligence adoption readiness among Nigeria’s over 39 million Small and Medium Enterprises (SMEs) and Micro, Small and Medium Enterprises (MSMEs). 

While there is evident enthusiasm for AI among SME entrepreneurs, the study also identifies critical gaps in awareness, access, and tailored solutions necessary to harness AI’s full potential.

The managing director emphasized that the report offers more than just data, it provides a strategic roadmap to foster an inclusive and intelligent digital economy in Nigeria. 

He said, “Through direct engagement with entrepreneurs across diverse geo zones, we have gained invaluable insights into their hopes and challenges. 

“At eTranzact, innovation is core to our values, and we are committed to collaborating with policymakers, innovators, and SME leaders to develop practical AI solutions that address real business needs.”

The organizations also noted that both electronic copies and hard copies are available.

Director of Programs & Partnerships at the Enterprise Development Centre (EDC), Pan-Atlantic University, Dr. Olawale Anifowose,stated, “The study adopted a mixed-method research approach, involving the use of both quantitative and qualitative data collection and analysis methods.

“The quantitative approach was implemented through a sample survey of SMEs with 5,290 responses across the 36 states of the federation, including the Federal Capital Territory. 

“The qualitative aspect was implemented through focus group discussions/summits with 212 participants across five states in the country, aimed to collect rich, in-depth information about issues in the study.”

The session, facilitated by the NFIU, spotlighted critical regulatory expectations—from Know Your Customer (KYC) protocols to transparency in Ultimate Beneficial Ownership (UBO) and the timely reporting of suspicious transactions.

These topics addressed operational gaps that have historically drawn international scrutiny and aimed to close compliance loopholes across the financial services ecosystem.

Designed to steer Other Financial Institutions (OFIs) toward full regulatory alignment, the intensive workshop brought together compliance officers, regulators, and key industry stakeholders. Discussions focused on evolving global trends in anti-money laundering (AML), counter-terrorism financing (CTF), and financial intelligence—supporting Nigeria’s ongoing efforts to exit the Financial Action Task Force (FATF) Grey List.

This move is considered crucial in restoring global financial confidence and credibility.

Amid rising global scrutiny on data integrity and financial transparency, eTranzact seized the opportunity to underscore its proactive compliance posture.

With secure, scalable systems and a strong internal governance framework, the fintech continues to position itself as a resilient leader in Nigeria’s digital financial landscape.

Addressing staff and participants at the session, Niyi Toluwalope, MD/CEO eTranzact Plc, made the company’s stance clear:

“Compliance is not an afterthought—it is woven into the very architecture of our operations. As Nigeria works its way off the FATF Grey List, we see this not just as a national priority, but a shared responsibility that begins at the institutional level.”

For eTranzact, the timing was apt as the company has already advanced key upgrades across its compliance infrastructure, deploying an automated anti- money laundering (AML) transaction monitoring system and intensifying oversight on high-risk customers, including Politically Exposed Persons (PEPs).

Edward Onyenweaku, chief risk and compliance officer eTranzact Plc, emphasized the operational backbone behind these measures.

“Our systems are built for adaptability and scalability,” he explained. “We are leveraging both technology and policy to ensure that regulatory shifts don’t catch us off guard. This training only sharpens that edge,” he said

As Nigeria races to meet international anti-financial crime benchmarks, firms like eTranzact are proving that regulatory compliance and digital innovation can go hand in hand.

The fintech’s presence at the CBN-led training wasn’t just symbolic—it was an active statement that security, transparency, and

infrastructure agility are not optional in today’s financial environment. In an industry where reputations rise and fall with compliance lapses, eTranzact isn’t just staying afloat—It’s setting the pace, proving that in fintech, security isn’t an added layer. It’s the infrastructure itself.

This groundbreaking initiative, spearheaded by Credo by eTranzact, in partnership with the Enterprise Development Centre (EDC) of Pan-Atlantic University and the Global AI Council of Nigeria, is designed to empower Small and Medium Enterprises (SMEs) with tools, insights, and strategies to integrate AI into their operations.

Since its launch in 2024, the roundtable has reached SMEs in three geo-political zones, with the debut session in Kano, followed by Port-Harcourt, and most recently, Enugu in December 2024.

These sessions have witnessed strong participation from business owners, who have lauded the initiative as a timely and impactful response to the challenges of the digital age.

Speaking on the significance of the project, Niyi Toluwalope, managing director/CEO of eTranzact, stated:

“At eTranzact, we are committed to driving an all-inclusive economy powered by technology. Through this roundtable, we are equipping SMEs—the backbone of Nigeria’s economy—with the knowledge and tools they need to remain competitive in a rapidly evolving global market. AI is no longer a luxury; it’s a necessity, and we are proud to champion this cause.”

Dr. Olawale Anifowose, the country director of the Enterprise Development Centre, of the Pan Atlantic University,  highlighted the program’s alignment with national development goals:

“This initiative represents a unique collaboration between academia, technology, and business. By reaching SMEs in every geo-political zone, we are addressing the needs of businesses at the grassroots level and ensuring they are not left behind in the AI revolution.”

Participants from previous sessions have shared glowing feedback about the program’s impact. Halima Yusuf, a retail business owner from Kano, remarked:

“Before attending the session, AI felt like a foreign concept. Now, I understand how it can help me manage inventory and improve customer experience. This is a game-changer for my business.”

Similarly, Chibuzor Okeke, a fashion entrepreneur from Enugu who spoke about the Credo by eTranzact initiative, noted:

“The roundtable opened my eyes to AI tools that can enhance creativity and streamline production. I am grateful to eTranzact and their partners for bringing this opportunity to us.”

As the Lagos edition approaches, expectations are high for another robust session with SME stakeholders eager to explore the practical applications of AI.

The initiative will continue across Nigeria’s six geo-political zones throughout 2025, ensuring that every region benefits from this transformative program.

Speaking recently on Channels Television, Toluwalope highlighted that such investments are crucial for bringing more people into the digital payment space, which, in turn, will spur significant business growth.

Toluwalope stated that financial inclusion creates many opportunities. Nigeria, with its large population, has much to offer through financial inclusion. With over 200 million Nigerians and 140 million mobile phone users, there is substantial potential for financial inclusion.

Of the 140 million, only about 60 to 65 million are banked, leaving another 65 to 70 million driving the informal economy.

Bringing even a small percentage of these individuals into the financial services ecosystem can create a billion-dollar business.

“One of the great things here is financial inclusion—how to get the bulk of the citizens into the financial services ecosystem to enable them to make payments, save, access insurance, credit, and other services that can drive entrepreneurship, support SMEs, and boost the economy,” Toluwalope noted.

He further explained the remarkable transformations seen over time in digital payments. eTranzact facilitates seamless electronic transactions daily, and one of the key drivers is the investment in technology that allows these operations to be seamless.

Building trust and confidence in the ecosystem is crucial for encouraging those who are excluded to become included and participate in financial transactions.

When asked whether Point-of-Sale (POS) systems pose a risk to financial inclusion in the country, Toluwalope replied,

“I wouldn’t see that as a risk; it’s an enabler. You want to bring people who have never trusted brick-and-mortar financial institutions into the financial services ecosystem. Expecting them to use a complex machine they have no connection with is unrealistic compared to a POS terminal operator who sells goods in a rural ecosystem.”

He referenced a 2012 study highlighting the cultural need to handle currency, which significantly affects the adoption of cashless systems in Nigeria.

Trust and convenience are critical. POS terminals offer trust because you see the person you’re transacting with, and they are convenient— they’re available at all times.

You can even call the operator late at night if you need cash. Investing in technology that simplifies access and infrastructure for digital payments will lead to a surge in business growth.

Toluwalope believes that while these technological features may involve less cash, there will still be some cash involved.

“Even in more advanced countries with widespread digital payments, cash is still used to some degree depending on the demographic. This is critical for Nigeria because reports indicate that money in the informal sector is almost as significant as that in the formal sector but not captured in formal trading.”

Commenting on eTranzact’s performance, Toluwalope said,

“For us, the numbers are impressive. Consistently, for the past 16 quarters, eTranzact has exceeded its expectations. We started our transformation journey in 2019, revamping our strategy to focus on switching infrastructure, merchant marketplace, merchant activity, and then direct-to-consumer services, which include our financial inclusion business and our digital bank.

“We are a switch, a central infrastructure, a backbone for the industry. We’re leveraging that to build merchant-acquiring activity and transform the financial inclusion space. We’re also using it to build our digital bank, creating several features for a wide demographic of Nigerians to conduct financial transactions. Somehow, we are not affected by most of these headwinds because our business is just like the food business. People eat at whatever ceremony. And so it is the same with payments.

“Every time you’re making a payment, you could reduce the frequency or increase the value, but at every point in time, you’re making payments. We are a switching infrastructure. We sit at the back end of all the debits, credits, and all the settlement positions. So, eTranzact will always be crucial in the financial landscape”.

Speaking at the Nigerian FinTech conference, themed ‘positioning Africa’s fintech ecosystem to accelerate inclusive growth,’ he noted that while FinTech has seen significant investment and growth, it must expand beyond traditional areas like e-payments and e-commerce.

“A lot of time, everyone is always talking about growth, growth, and growth. But in FinTech, I think we see a lot more expansion and moving into different areas. The area we need to focus more on is actual growth. Growth from the perspective of deepening into what we are already doing to actually accommodate a lot more players, more people, and more verticals into what we are doing today,” Toluwalope said.

Nigeria’s fintech sector has received over $4 billion in inward investments in the last couple of years. But those monies are focused on e-payments, e-commerce, payment enabling, and all of that.

A report in 2012 emphasised the fact that 90 percent of transactions in Africa are still predominantly cash. If we look at the landscape of Nigeria, there is a lot of fintech activity, but predominantly in Abuja, and recently some of which we have actually taken to Kano and Kaduna.

This tells us there’s still a lot of regions in Africa, in Nigeria, that need to be covered.

The CEO stressed that FinTech must focus on deepening its reach, accommodating more players, and exploring new verticals to truly drive inclusive growth.

“We need to continue to broaden our focus. It’s easy to focus on heavily active hubs in Lagos, the FinTech powerhouse, but we need to ask ourselves, are we spreading the benefits across Nigeria? You might say the returns on investments are there. But it’s not always about return on investments today because we have to think about return on investments tomorrow.

“We need to do what we need to do today, so that in 20 years from now, some of you can be here talking about what you have created over the 20 years, or what you have enabled over the last 20 years to get Nigeria to where it is now and where it ought to be,” the eTranzact CEO said.

“Sectors such as agriculture, healthcare, and real estate offer exciting opportunities for FinTech innovation. However, these areas have been largely overlooked in favour of more established markets. These sectors are also established to be very critical to our economy, yet still not as focused on as they ought to be. The perception is usually they are not investable, but if we aim for true, inclusive growth, FinTech needs to provide solutions that solve the problems in those sectors.”

The CEO charges everyone to be open and to continue to collaborate and be flexible in how we build our FinTech products.

Toluwalope highlighted the significant gap between Nigeria’s banking and unbanked populations, citing 140 million telephone subscribers and only 65 million active bank account holders.

“This is the opportunity in the marketplace,” he noted. “This is what gets us excited every day, and eTranzact has positioned itself as a “super fintech,” ready to collaborate and take on innovative ideas to ensure financial inclusion for all Nigerians.