Economy
By Benprince Ezeh
THE Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, has said that indigenous Financial Technology, FinTech, firms have attracted $500 million investments into the country in five years.
In virtual keynote address at the 31st seminar for Finance Correspondents and Business Editors, FICAN, in Enugu on Wednesday, Emefiele, who was represented by Edward Lamekek Adamu, Deputy Governor, Corporate Services Directorate, attributed the development to the confidence the investing community has in Nigeria’s robust payment system.
He stated that though the launch date of October 1, for Nigeria’s digital currency, the eNaira was not met, it would be unveiled in a matter of few days.
Emefiele said that in spite of the country’s robust payment system, about 36 percent of adult Nigerians still do not have access to financial services, which the International Monetary Fund, IMF, blamed on the impact of the pandemic.
“As the world recovers from the Covid-19 pandemic, FinTech will play a more important role towards resilient and sustainable recovery,” he said.
According to him, a country with one of the largest millennial populations in the world- (estimated 62% of the Nigerian population below 25 years of age), fast smartphone growth driven by increasing affordability, increasing mobile penetration and fast transition to 5G technology, Nigeria remains primed to be an active playground for digital transformation and cannot afford to ignore the Fintech challenge.
“Improving access to finance for individuals and businesses through digital channels can help to improve financial inclusion, lower the cost of transactions, and increase the flow of credit to businesses.
“Going forward, digital revolution will be a focus for financial institutions in the months ahead, therefore making Fintechs a major driver of the industry.
“The advent of digital financial services has created faster, more efficient and typically cheaper transactions compared to traditional financial services,” the governor said.
Emefiele assured that the introduction of the digital currency by the CBN would help in attaining the goals of fostering greater inclusion using digital channels.
Another reason for introducing the eNaira is to support cross-border payments for businesses and firms as well as providing a reliable channel for remittances inflows into the country.
“With the deployment of the eNaira, Nigerians in remote areas can conduct financial activities using their digital as well as features on phone devices,” he added.
First published – OCT. 06, 2021 @ 14:40 GMT | C.E
Tags: CBN Central Bank of Nigeria Godwin Emefiele
