The Chief Executive Officer (CEO) of eTranzact International Plc., Niyi Toluwalope, has intimated that almost 70 million active mobile line owners in Nigeria do not have bank accounts.

Mr. Toluwalope made this declaration at the annual Capital Market Correspondents Association of Nigerian (CAMCAN) 2021 Annual Workshop.

According to the CEO, 150 million of Nigeria’s 200 million people own mobile phones, while 110 million owned 150 million mobile phone lines but only approximately 40 million have active bank verification numbers.

Mr. Toluwalope stated that the gap must be bridged, particularly in the case of small and medium-sized businesses.

Speaking on the topic “Technology as a Tool for Financial Inclusion in Nigeria: A Fintech Approach”, the eTranzact Boss stated that Nigeria’s financial inclusion is inadequate and that financial inclusion is critical for the capital market industry’s success and the Nigerian economy as a whole.

“Financial inclusion holds the answers to how we increase the participation of retail investors, how we encourage more homegrown businesses, leverage the capital market for growth and the informal sector participation in the capital market.”
Mr. Toluwalope

The need for full optimization of technology in financial inclusion

Mr. Toluwalope further underscored the relevance of technology in the federal government of Nigeria’s financial inclusion agenda, emphasizing how it is indispensable in providing the citizens of Nigeria with access to financial services in the country.

“The role of technology cannot be overemphasized. Over the past few years, technology has allowed more people to gain access to financial services, and that has increased by default, the customer base of capital market operators.

“Essentially, the rise of digital financial services means growth for the capital market.”
Mr. Toluwalope

Optimization of the benefits of technology, according to Mr. Toluwalope, will democratize capital market access and participation.

The CEO explained how most Nigerian banks are now offering digital banking, which will enable firms to profit from the Nigerian capital market. This, the CEO believes, will help banks in Nigeria compete favorably with leading international banking institutions.

“We can directly expand the current digital savings and investments offerings to leverage the capital market for increased returns.”
Mr. Toluwalope

The CEO further noted that for financial inclusion to succeed, private and public sector players would have to work together.

Meanwhile, many Nigerians are unbanked and have no access to formal financial services for a variety of reasons. According to the findings of the EFInA Access to Financial Services in Nigeria 2021 survey, 38 million adults in Nigeria are financially excluded, with 56% of this population being female and the rest being males. Of the adult population, 19% resided in the Urban regions whiles the remaining 81% lives in the rural regions.

Mr. Toluwalope pointed out that both the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) have taken initiatives to promote financial inclusion.

According to the Nigerian News Agency (NAN), the workshop included a panel discussion in which participants from the Nigerian Exchange (NGX) Ltd., the FMDQ Exchange, the Securities and Exchange Commission (SEC), and stockbrokers pledged. Flour Mills of Nigeria, United Bank for Africa, Access Bank, Zenith Bank, NGX, FMDQ, and SEC, among others, sponsored the event.