Fintech: The Key to Financial Inclusion in Nigeria

The Bank of Industry (BOI), Nigeria’s oldest and most successful development finance institution, is leading the charge in leveraging fintech to drive financial inclusion in the country. Olukayode Pitan, the CEO of BOI, has underscored the importance of fintech in achieving this goal.

The Central Bank of Nigeria has set an ambitious target of over 90 percent financial inclusion. Achieving this target, according to Pitan, requires significant contributions from the fintech sector. To this end, BOI has developed a cutting-edge platform that harnesses the power of technology, big data, biometrics, and physical agents on the ground.

This platform has already proven its effectiveness, having been used to distribute NGN 75 billion (approximately $160-170bn) to about 1.2 million people. It is also being utilized for a World Bank program aimed at alleviating poverty exacerbated by the coronavirus pandemic.

In addition to promoting financial inclusion, BOI is also committed to supporting underserved groups such as women and young entrepreneurs. Recognizing the economic potential of women and the broader benefits to the family, BOI has established a gender group dedicated to women and women-owned businesses. For young entrepreneurs, who often lack collateral, BOI is willing to take risks and offer single-digit loans.

Through these initiatives, BOI is demonstrating how fintech can be leveraged not only to promote financial inclusion but also to support underserved groups and contribute to Nigeria’s economic diversification. This approach sets a powerful example for other institutions in the country and beyond.