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Osun lawmaker advocates digital literacy for Financial Inclusion

Adewumi Adeyemi, popularly known as Irekandu, a distinguished member of the Osun State House of Assembly has emphasised the urgent need for collaboration between government, fintechs, and digital platforms to foster digital literacy and expand financial inclusion, especially for underserved communities in Nigeria.

Speaking as the guest speaker at the Osogbo Bankers Committee Dinner and Award Night organised by the Central Bank of Nigeria (CBN) on Saturday, Irekandu who is the Chairman,
House Committee on Innovation, Science and Technology and SDGs underscored the significance of developing digital applications that support digital literacy while delivering tailored business insights and advice.

He highlighted the importance of leveraging these technologies to bridge the gap in financial inclusion, particularly among individuals without formal credit histories.

In his address, Irekandu stressed the pivotal role of alternative data, including repayment behaviours, collaborative patterns, and store or bank credit records, in establishing credit scores.

He noted the necessity of aggregating and evaluating this data to provide access to finance for marginalised groups such as financially excluded women, youth, smallholder farmers, and the unbanked populace, particularly in rural areas like Obokun, his constituency.

Addressing the challenge of evaluating credit histories for individuals with limited formal education, Irekandu first traced the introduction of Fintech in Nigeria to the “cashless policy introduced by the Central Bank in 2012. This policy is aimed at reducing the amount of cash in circulation while encouraging electronic payments. The COVID-19 pandemic also played a significant role in promoting fintech adoption, as businesses had to find ways to reach their customers without
physical meetings.

“The rise of fintech in Nigeria has provided numerous opportunities for companies to offer services that rely heavily on technology, contributing to financial inclusion.”

He cited examples from other countries where innovative approaches have utilised transaction data from e-commerce, payment platforms, mobile phones, and social networks to assess creditworthiness effectively.

Advocating for the integration of financial education to avert over-indebtedness, the legislator highlighted the importance of promoting online platforms and e-commerce to facilitate the monitoring of creditworthiness, a crucial element in achieving financial inclusion objectives.

Irekandu stated, “As Nigerians, we need to collaborate to encourage the use of online platforms and e-commerce among our people. This will facilitate tracking creditworthiness, which is vital for financial inclusion. Financial inclusion is not just a goal but an enabler of economic growth and a catalyst for achieving sustainable development.”

He continued “In using digital platforms, we must work closely with the governments and fintechs on the ground in Nigeria to urgently develop an application to support digital literacy while delivering targeted business insights and advice.

Moreover, this data, along with other alternative data such as repayment of the store or bank credit and collaborative behaviours, will contribute to a credit score providing a route for access to finance to those without formal credit histories like the bottom of pyramids, unbanked, smallholder farmers mostly residing in our rural areas, financially excluded women, and youth in places like Obokun where I come from.”

Irekandu’s address at the Bankers Committee Dinner underscored the imperative of collaborative efforts between governmental bodies, financial institutions, and technology platforms to foster digital literacy and expand financial inclusion, particularly for marginalised communities across Nigeria.

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