PAFON 2.0: Experts Outline Key Strategies to Accelerate Financial Inclusion in Nigeria

At the recently held second edition of the Payments Forum Nigeria (PAFON 2.0) in Lagos, industry experts emphasized the need for stronger collaboration among financial service providers, telecom operators, and tech startups—combined with intentional consumer awareness campaigns—as essential drivers of financial inclusion in Nigeria.

Delivering the keynote address on the theme “Bridging the Customer Experience Gap for Financial Inclusion Using AI,” Mrs. Ebehijie Momoh, Managing Director/CEO of AfriGoPay Financial Services Limited (represented by Mr. Munachi Duru, Head of Innovation and Strategic Partnerships), noted that Nigeria has achieved significant progress, with 64% of its adult population now financially included.

She highlighted major regulatory milestones, such as the introduction of the Bank Verification Number (BVN) in 2014, which has streamlined customer identification across banks and boosted trust in the financial system.

A cross section of participants at Payments Forum Nigeria – PAFON 2.0 held in Lagos, recently.

The increasing adoption of smartphones has further fueled financial inclusion, with Nigeria recording 142.16 million mobile internet subscriptions and an average monthly data consumption of 7.04GB as of January 2025. In contrast, feature phone shipments across Africa declined by 15.9% to 18.8 million units in Q1 2024, illustrating the shift toward smart, connected devices.

According to Momoh, the integration of Artificial Intelligence (AI) in financial services is transforming customer onboarding and servicing. She cited innovations like Smile Identity’s facial recognition-powered KYC tools now being deployed by neobanks and commercial banks for efficient, low-cost customer acquisition.

In her goodwill message, Mrs. Uche Uzoebo, MD/CEO of Shared Agent Network Expansion Facilities Limited (SANEF), noted that SANEF has leveraged AI to extend financial services to previously excluded populations. She underscored the importance of keeping financial inclusion at the core of Nigeria’s fintech evolution, noting that agent banking has played a pivotal role in reaching unbanked communities with services such as account opening, cash deposits and withdrawals, transfers, bill payments, and more.

During a panel session, Mr. Ibirogba Oluwagunwa, Chairman of the Lagos State Chapter of the Association of Mobile Money & Bank Agents in Nigeria (AMMBAN), cited poor collaboration and a slow institutional embrace of AI as key barriers to digital inclusion. He stressed the need for increased information sharing among fintechs and greater consumer education, remarking, “AI cannot operate itself; fintechs must be actively pushed forward.”

Echoing this sentiment, Mr. Chika Nwosu, Managing Director of PalmPay, emphasized the importance of using simple, consumer-friendly communication strategies to build trust and drive adoption. “Operators need to prioritize user-centric design and awareness to ensure financial products resonate with everyday Nigerians,” he said.

Speaking on the intersection of AI, Blockchain, and Central Bank Digital Currencies (CBDCs), Mr. Olusoji Solomon Adeyemo, Azure Application and AI Specialist at Microsoft UK, advocated for leveraging these technologies to extend financial services to rural areas. “Education is key,” he noted, adding that blockchain could facilitate secure, exclusive digital identities essential for inclusion.

Oluwabunmi Ogunyemi, Customer Support Lead at Moniepoint MFB, called for a hybrid approach involving both digital and face-to-face engagement with customers, especially in underserved areas. Similarly, Mr. Olusegun Afolabi, Co-founder of Face Technologies UK Ltd., urged the industry to adopt biometric and card-based identification systems for enhanced user security and trust.

In his opening remarks, Mr. Peter Oluka, Co-Convener of PAFON, pointed out that despite notable gains, over 30 million Nigerian adults remain financially excluded—many of whom live in rural or marginalized communities. He referenced the EFInA 2023 survey, which recorded a 12% increase in access to formal financial services between 2020 and 2023, but emphasized that more work needs to be done.

“As digital infrastructure expands and fintech innovation accelerates, we must ensure these advancements are directed toward creating a secure, inclusive, and trusted financial ecosystem,” Oluka said. “It’s not just about enabling transactions—it’s about empowering people and enabling economic participation for all.”

Co-Convener Mr. Chike Onwuegbuchi echoed this call for collective action, urging stakeholders—including regulators—to participate in forums like PAFON to map out inclusive growth strategies. He also announced plans to involve security agencies like the EFCC in future editions to address safety concerns in financial product deployments, especially in rural and underserved areas.

Payments Forum Nigeria (PAFON) remains a critical platform for shaping the future of digital payments and advancing financial inclusion across Nigeria.