In a recent high-level policy dialogue between the Nigerian government and private sector stakeholders held in Washington DC, Tosin Eniolorunda, Moniepoint Inc’s Group CEO and Co-Founder, emphasized the importance of public-private collaborations in addressing trust issues that have slowed down the adoption of innovative fintech solutions for economic and financial inclusion.

“Moniepoint has long championed the importance of financial inclusion and financial happiness. Building trust with the public and government, improving business and consumer access to the financial system are critical issues that are aligned to our philosophy.

As testament to our commitment, we recently launched a landmark report investigating Nigeria’s informal economy, highlighting opportunities to widen financial inclusion to historically underserved communities. The outputs from this strategic gathering will go a long way in bolstering Nigeria’s economy even as closer linkages are formed from public-private collaboration which will be a huge boost to the overall development and competitiveness of the larger financial services industry,“ Eniolorunda said.  

The event, which brought together government officials, regulators, law enforcement agencies, and fintech industry leaders at George Washington University, aimed to leverage innovative approaches to drive a sustainable and inclusive financial system in Nigeria.

Vice President Kashim Shettima, addressing the gathering via video conference, highlighted the urgent need for financial innovation to drive Nigeria’s economic and financial inclusion agenda. This aligns with President Bola Ahmed Tinubu’s administration’s commitment to bringing over 30 million unbanked Nigerians into the formal financial sector as part of the Renewed Hope Agenda.

“We must develop a sustainable collaboration approach that will facilitate the adoption of inclusive payment to achieve our objective of economic and financial inclusion,” Vice President Shettima stated.

The dialogue focused on addressing critical challenges in Nigeria’s fintech ecosystem, including regulatory oversight, security concerns, and trust issues that have hindered the widespread adoption of innovative financial solutions.

Participants explored strategies to enhance interagency collaboration and strengthen the overall effectiveness of the financial services sector.

Philip Ikeazor, deputy governor of the Central Bank of Nigeria responsible for Financial System Stability, emphasized the need for ongoing collaboration among all stakeholders to meet the goals of the Aso Accord on Economic and Financial Inclusion.

Kashifu Inuwa Abdullahi, director General of the National Information Technology Development Agency (NITDA), advocated for “a digital-first approach and the fusion of digital literacy with financial literacy to address trust issues affecting the inclusive payment ecosystem.”

Dr. Nurudeen Zauro, technical advisor to the President on Economic and Financial Inclusion, explained that the gathering aims to evolve into a mechanism providing relevant information to the Office of the Vice President, facilitating effective decision-making for economic and financial inclusion.

The event resulted in various recommendations covering rules, infrastructure, and coordination, with a focus on implementable actions and clear accountabilities.

As discussions continue, Moniepoint remains dedicated to leveraging its expertise and technology to support the government’s financial inclusion goals and create a more financially inclusive society for all Nigerians.

Other notable speakers included Inspector General of Police Mr. Kayode Egbetokun, Executive Director of the Center for Curriculum Development and Learning (CCDL) at George Washington University Professor Pape Cisse, Assistant Vice President at Merrill Lynch Wealth Management Mr. Reginald Emordi, Regional Director for Africa at the Center for International Private Enterprise (CIPE) Mr. Lars Benson, and United States Congresswoman representing Florida’s 20th congressional district, The Honorable Sheila Cherfilus-McCormick, Prof Olayinka David-West from the Lagos Business School among others.

Receiving the team at the CBN headquarters in Abuja, Philip Ikeazor, deputy governor, Financial System Stability, commended FintechNGR ’s active advocacy efforts that have significantly improved the fintech ecosystem.

The Central Bank emphasized the need for the Association to work closely with stakeholders to operate within regulatory provisions, facilitate compliance, and establish robust risk management frameworks and governance structures.

Mr. Ikeazor stated, “The Central Bank understands the critical roles of fintechs in driving financial inclusion to the last mile. Our efforts are geared towards helping fintechs become more attractive to investors and achieve greater success.”

During the meeting, Ade Bajomo noted that while stakeholders strive to comply with regulatory requirements, they sometimes face challenges beyond their control.

He stated, “The common understanding within our ecosystem is that compliance makes the environment safer for all to innovate, scale, and collaborate. FintechNGR will ensure the co-creation of a support structure with the CBN to enhance compliance.”

Some of the initiatives the regulators plan to pursue with the ecosystem include making the 2024 Nigeria Fintech Week more impactful, enriching the activities of the Regulators Forum, organizing fintech learning series for various stakeholders, and exploring self-regulation status for FintechNGR to foster closer relationships with regulators.

FintechNGR remains committed to working with all regulators to better position the ecosystem to be more inclusive and impactful.

The hybrid event highlighted the dynamism and potential of the Nigerian fintech sector, addressing critical issues such as resilience in the face of cybersecurity threats, innovation as the lifeblood of the industry, and diversification for long-term sustainability.

In a welcome address, Ade Bajomo, the President of FinTechNGR, explained that the Nigeria Fintech Week emerged as an opportunity to shed light on novel ideas, solutions, thought leadership, and products from Nigeria’s fintech ecosystem. 

The choice of the theme, “FinTechs: Resilience, Innovation, and Diversification,” was particularly fitting in a world marked by rapid socio-economic and political changes.

While Innovation remains the lifeblood of fintech, Ade Bajomo emphasized the programme’s commitment to pushing boundaries and improving customer experiences reflects the sector’s dynamism.

“Innovation is the lifeline of our ecosystem, probably its very basis for existence, driving financial inclusion, payments, customer experience, scales and competitiveness to unprecedented heights and today, I am really delighted to have so many of our fintech firms showcase their products in some 50 booths”

Diversifying product offerings and exploring strategic partnerships were encouraged to ensure long-term sustainability. Fintech firms looking to expand beyond Nigeria demonstrated the industry’s growth potential.

Despite economic challenges, Nigeria’s fintech sector continues to thrive, attracting substantial foreign investments. Opportunities for financial inclusion remain significant with millions of unbanked individuals.

“Fintech Global Research, as at Q2 2023, Nigeria attracted 42% share of the fintech deals in Africa, making it the most active destination on the continent. There are now some 250 active fintech firms and over 6,000 startups registered with various acceleration/incubation hubs and Financial Services Institutions.”

Exploring new sectors like AgriTech, InsurTech, and Blockchain adoption was encouraged. Nigeria aims to nurture the next generation of unicorns, driving socio-economic development. The vital role fintech played during the cashless period was recognized, ensuring economic stability and providing services to the last mile.

As the world embraces the 5th industrial revolution, Nigeria’s fintech sector is focusing on developing key verticals, addressing talent shortages, and reducing foreign exchange demands.

Philip Ikeazor, Deputy Governor, Financial System Stability (FSS), CBN, acknowledged the promotion of innovation in the fintech sector. However, he also highlighted the need for cautious consideration of regulatory and cybersecurity risks. In his analogy, he compared regulators to the “brake system” of a car, emphasizing the importance of regulatory oversight to ensure the industry’s safety and stability.

Regulation was a central theme of Ikeazor’s speech, reinforcing the critical role it plays in guiding the fintech industry and protecting consumers and the financial system.

Will Stevens, the U.S. Consul General, commended the fintech sector’s vital role in Nigeria’s economy and emphasized the sector’s strong ties to American businesses. Stevens encouraged Nigerian fintech companies to consider themselves as American companies and join the American Business Council, highlighting the advocacy, networking, and access to resources it provides.

Stevens pointed out the immense potential for networking within the fintech sector, drawing parallels between Nigerian fintech firms and major U.S. companies. He emphasized the value of partnership and mutual support between the U.S. and Nigerian fintech sectors, reflecting the Biden administration’s broader goals.

The Consul General also touched on the importance of fintech in advancing digital transformation, infrastructure investment, training initiatives, and climate-related efforts. He urged Nigerian fintech companies to think globally, highlighting the need for African solutions to global problems and international collaboration.

These addresses highlighted the need for a collaborative approach to address global challenges and promote innovation in the fintech sector.