How AI, human collaboration  will  drive financial inclusion in Nigeria- Experts

As Nigeria strives to improve its financial services sector, experts have highlighted the critical need for artificial intelligence (AI) to be integrated with human touch to achieve true financial inclusion.

While AI holds great promise in revolutionising various industries, including finance, industry experts have emphasised that its effective deployment must involve a deep understanding of cultural nuances and meaningful human interaction, ensuring the technology complements rather than replaces people.

At a recent event titled “Bridging the Customer Experience Gap for Financial Inclusion Using AI,” industry leaders from fintech and mobile money sectors gathered to discuss how AI can be leveraged to improve financial accessibility for Nigeria’s underserved populations. Experts underscored the importance of aligning AI innovation with the country’s unique social and economic realities.

Ibirogba Oluwagunwa, chairman of the Lagos State Chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), acknowledged AI’s transformative potential but stressed that human input remains indispensable. He noted that while AI can process and analyse vast amounts of data, it relies on humans to feed it with the right information and ensure it addresses real-life needs.

“AI may be the new normal in the digital finance landscape, but without human and cultural interfaces, it cannot succeed,” Ibirogba explained. “For AI to truly make an impact, we need the involvement of people, and without it, the technology would lack the necessary foundation to thrive.”

He pointed out that despite technological advancements, Nigeria’s predominantly cash-based economy and infrastructure issues, like network failures and transaction delays, continue to challenge the financial system. Mobile money agents, in particular, often bear the brunt of these setbacks, facing customer frustrations and escalating operational costs. Inflation and economic instability further exacerbate these challenges, creating an unsustainable business environment for agents.

“The cost of doing business has soared, and it’s becoming increasingly difficult for agents to remain viable. This is not a challenge any one entity can solve alone. Collaboration across the financial ecosystem is essential to share the burden,” Ibirogba added. He called for increased investment in agent training and public education to raise awareness about digital financial systems and foster trust among Nigerians.

While he acknowledged the potential of AI to modernise service delivery, Ibirogba emphasised that any technological solution must align with local cultural values and social structures. “We cannot rely on under trained personnel as frontline agents. It’s not about their capabilities, but rather the need to integrate AI into a system rooted in our culture. Without this foundation, AI will struggle to gain traction,” he noted.

Uche Uzoebo, CEO of Shared Agent Network Expansion Facilities (SANEF) Limited, also highlighted the pivotal role AI plays in advancing financial inclusion. She described AI as a “powerful lever” capable of transforming the financial ecosystem, provided it is deployed responsibly and ethically.

“AI is no longer a concept of the future. It’s already shaping industries worldwide, from automating customer service and detecting fraud to enabling real-time lending decisions,” Uzoebo said, adding that “In Nigeria, where millions remain unbanked, AI offers a transformative opportunity to bridge financial gaps and enhance service accessibility.”

Uzoebo further emphasised the importance of agent banking in driving financial inclusion across Nigeria’s 774 local government areas. Through this model, financial agents have brought essential banking services—like account opening, bill payments, and fund transfers—closer to underserved communities, making banking more accessible to the masses.

Reflecting on the early adoption of agent banking, she noted how consumer behavior shifted during the COVID-19 pandemic, with even local traders embracing the model to access funds for daily needs. “Before the pandemic, many Nigerians were reluctant to engage with banking agents. But the crisis shifted that mindset, especially in rural areas, where people saw the value of agent banking in accessing necessary funds,” Uzoebo noted.

Agent networks have also played a significant role in overcoming language and literacy barriers, with local agents often communicating in indigenous languages and simplifying documentation processes for customers.

Looking ahead, Uzoebo believes AI represents the next frontier in financial inclusion, offering a way to scale services quickly and efficiently. She pointed out that AI can improve customer verification processes, minimise fraud, and create tailored financial products, ultimately fostering greater trust in digital financial systems.

“AI helps reduce barriers like know-your-customer (KYC) challenges, detect suspicious activities in real-time, and personalize offerings based on individual needs. These advancements will build trust in digital payments and financial services,” she explained.

However, Uzoebo stressed that the adoption of AI must adhere to regulatory frameworks to ensure its ethical deployment. “Even the best innovations will fall short without regulatory compliance. If we deploy AI responsibly and follow established guidelines, we can unlock opportunities that benefit everyone,” she said.

Uzoebo underscored the importance of collaboration among all stakeholders in the financial ecosystem to ensure that AI accelerates financial inclusion without compromising consumer rights. “We must prioritise trust, privacy, and transparency in our AI systems. It is essential for financial institutions, fintech companies, and development partners to work together—not competitively—to create an ecosystem where AI can drive financial inclusion,” she said, noting “By doing so, we can build a more inclusive, equitable, and prosperous Nigeria for future generations.”

On her part, Ebihijie Momoh, MD and CEO of AfrigoPay, who was represented by Munachi Duru, the head of innovation and strategic partnerships at AfrigoPay,

emphasised the remarkable progress Nigeria has made in advancing financial inclusion, attributing much of this growth to the relentless innovation within the country’s fintech sector that has helped millions of Nigerians step into the formal financial ecosystem.

She acknowledged that regulatory interventions have also paved the way for progress with the Central Bank of Nigeria’s (CBN) introduction of tiered Know Your Customer (KYC) requirements  stating “Before that policy, opening a bank account in Nigeria often required jumping through hoops. With the tiered KYC framework, more Nigerians, especially those at the grassroots, found it easier to access financial products.”

Despite the advancements, Momoh highlighted that Nigeria still grapples with deep-seated disparities. According to her, one in every four Nigerians remains financially excluded. The problem is more acute in rural areas, where 37% of residents lack access to formal financial services, compared to 17% in urban areas.

This digital divide, she explained, continues to be a major barrier to inclusive economic growth and must be addressed with both innovation and policy reform.

The MD further stressed  Artificial Intelligence (AI) and its growing relevance across financial operations, particularly in bridging inclusion gaps, optimising processes, and enhancing customer experiences, highlighting five core areas where AI is already playing transformative roles in the Nigerian fintech space to include KYC and authentication, machine learning, which analyses data within an ecosystem to identify trends and make informed decisions.

She also mentioned natural language processing (NLP), the technology that powers most chatbots, including those used in financial services today and AI’s role in fraud detection and prevention.

Momoh emphasised how AI can optimise payments by predicting, validating, and instantly refunding transactions when necessary. Furthermore, AI-powered chatbots and virtual assistants are improving customer support, making it easier to handle inquiries and resolve issues across multiple channels.

A particularly significant application of AI, according to Momoh, is credit scoring. She explained that AI plays a central role in data management, which is essential for making accurate credit decisions. Data structuring, presentation, and management are key components of this process. Identifying the sources of data and understanding what needs to be achieved through AI are critical steps in leveraging AI effectively.

Momoh also stressed the importance of data security and customer consent in AI applications. She emphasised that data must be securely preserved, especially as generative AI technologies can create replicas of individuals, potentially leading to identity theft if mishandled.

She emphasised that while AI offers groundbreaking opportunities for financial institutions, success depends on ethical data usage, strategic implementation, and a people-centric approach, stating “We must remain conscious that the real value of AI lies in how well it serves the human need.”