NCC’s FinTech push to expand financial inclusion in Nigeria

Joy Agwunobi

The Nigeria Communications Commission (NCC), has highlighted the important role that the FinTech industry plays in promoting financial inclusion for underserved and unserved communities across Nigeria, noting that the innovative services offered by FinTech companies have enabled many more Nigerians to access financial services, even in remote and rural areas.

Aminu Maida, EVC/CEO of the NCC, made these remarks at the 2023 edition of the annual NITRA FinTech Forum held recently in Lagos,themed “Harnessing Nigeria’s Fintech Potential: Challenges and Opportunities.”

According to the EVC, who was represented at the event by  Henry Ojiokpota,the controller of NCC Lagos Zonal Office, the theme of the forum was particularly relevant in light of the rising use of digital financial services across Nigeria.

The EVC stated that FinTech is playing a crucial role in revolutionising Nigeria’s financial ecosystem, and that it is a positive disruption to the conventional financial system. He explained that FinTech leverages technology to improve financial services, such as mobile banking, borrowing, investment, and cryptocurrency, and that it acts as an enhancer and enabler of business and other opportunities related to innovation, job creation, and investment, all of which stimulate economic growth. He noted that the benefits of FinTech go beyond just the financial sector, and also positively impact other sectors such as health, education, agriculture, and transportation.

The EVC noted that Fintech applications such as robo-advisors, payment apps, peer-to-peer lending apps, investment apps, and crypto apps are creating business opportunities for individuals, as well as boosting the economy. He stated that the adoption of these Fintech applications by the youth, who account for 70 per cent of Nigeria’s population, will add value to the economy.

He also emphasized the importance of creating an enabling environment for the development of FinTech in Nigeria, including creating a regulatory framework that balances consumer protection and innovation.

Maida cited recent industry statistics indicating that active mobile subscriptions in Nigeria reached 220.7 million in August 2023, to highlight the potential of the Nigerian Fintech ecosystem to provide a wide range of financial services to telecom subscribers.

He noted that the NCC will continue to expand and enhance telecommunications infrastructure to enable robust Fintech services and address consumer concerns and regulatory challenges in the sector, noting that the optimal use of digital technologies will enhance the provision of financial services to rural communities and underserved segments of the population, given the high mobile phone penetration in Nigeria.

“Fintech has the potential to deepen the existing payment and financial system infrastructure to reach unserved and underserved areas and further stimulate economic growth,” he said..

Maida disclosed that the NCC has begun implementing new strategies to achieve the new target of 70 per cent broadband penetration by 2025, as set out in the Nigerian National Broadband Plan 2020-2025 and the blueprint released by the for accelerating the growth of the digital economy sector through technology.

According to Maida, these policies and strategies will have a significant impact on the benefits derived from the Fintech industry and will significantly and positively impact Nigeria’s goals on financial inclusion and the digital economy.

He also assured that the commission will continue to support the Fintech industry in realising its full potential and will not relent in its efforts to address challenges in the sector, including the provision of secure infrastructure to support the efficient delivery of digital financial services. He further reiterated the commission’s focus on maintaining minimum standards for Quality of Service (QOS) to ensure uninterrupted connectivity and contribute to the overall economy.

Maida concluded by reiterating the importance of collaboration between the government, regulatory agencies, service providers, and end-users in achieving the set goals for the Fintech industry.