The Nigerian Economic Summit Group (NESG), in collaboration with Zedcrest group, say are focused on finding ways to enhance Nigeria’s financial environment.
Head, Communications and Advocacy, NESG, Yinka Iyinolakan, said this in a statement made available to newsmen on Wednesday in Abuja.
The statement quoted the two organisations stating that an event titled “Securing and enriching Nigerians at scale: Prosperity inclusion through financial sector innovation.”
It qouted the Group Managing Director of Zedcrest, Mr Adedayo Hamzat saying prosperity inclusion through financial sector innovation is a follow up to discussions at the 27th Nigerian Economic Summit (NES#27), which focuses on finding ways to enhance Nigeria’s financial environment.
Hamzat said that there was need to address existing gaps by focusing on three thematic points including regulation, bringing more foreign direct investments into the country and evolving the consumer window industry that would transform Nigeria into a credit driven economy.
In another remark, the NESG board member and the Chief Executive Officer, Stanbic IBTC Holdings Plc, Dr Demola Sogunle, said that the financial sector is essential to drive financial inclusion and economic growth.
Sogunle said that it was crucial for the financial sector, through commercial banks, capital markets, and the insurance sector, to play a vital role in funding capital investments and not just providing industry loans concentrated in the oil and gas sector.
Sogunle said that Nigeria ranks low regarding financial penetration, with 40 per cent living below the poverty line, with only four per cent of the 40 million MSMEs having access to credit.
“The factors affecting the financial sector include lack of credit history, inability to keep proper financial records, non-realization of collateral, lack of management strategies, stiff competition from larger corporates and limited business presence of micro-SMEs.
“ There is a need to adopt partnerships that will drive mobile adoption and inclusive development.
“Development of credit infrastructure, creation of financial literacy programs, facilitate open banking initiatives for information sharing and collaboration to develop innovative financial products amongst stakeholders,” Sogunle said.
He said that homegrown solutions to some of those problems including online payment provisions, payment data to determine lending risks which could be obtained from smartphones, SME hubs to generate records on transactional activities.
To also improved credit scoring in the rural areas, mainly where banking activities are limited, he reiterated that businesses must strengthen their capital base to survive as an SME.
