Wilfred N.J. Ugwuanyi, Professor of Banking and Finance, has said Nigeria cannot achieve sustainable economic growth without a functional, inclusive and culturally responsive financial system. He made the submission during the 39th Inaugural Lecture at the National Open University of Nigeria (NOUN) in Abuja. His lecture, titled 'Technological Innovations and Informal Financial Institutions: Implications for Economic Development Amidst Cultural Diversity in Nigeria', examined the role of informal financial systems in national development. Ugwuanyi identified savings and credit associations, cooperative societies, thrift collectors and community-based lending groups as deeply rooted in Nigeria's socio-cultural fabric. He described them as social institutions built on trust, mutual support and shared identity, not just financial mechanisms. Mobile money platforms, electronic funds transfer systems, ATMs and digital banking apps have improved transaction speed and access, he noted. Yet, he warned that benefits are unevenly spread due to poor infrastructure, low internet access in rural areas, cybersecurity risks and digital illiteracy. Trust deficits remain, with many Nigerians sceptical of formal and digital systems due to past experiences and cultural preferences. He urged policymakers to integrate informal financial institutions into the national financial architecture instead of replacing them. Financial literacy programmes, he added, must reflect Nigeria's linguistic diversity, cultural nuances and varying tech exposure. "Nigeria's diversity should be seen as an asset, not a barrier. A one-size-fits-all approach would fail," he said. Vice-Chancellor Professor Uduma Oji Uduma described inaugural lectures as platforms for intellectual engagement.
A professor highlights that Nigeria's financial system excludes those it should serve, despite their deep-rooted financial traditions. Millions rely on informal networks because formal institutions fail to earn trust or adapt to local realities. Policymakers continue to overlook cultural context in financial design, undermining inclusion efforts. If digital systems ignore how people already manage money, adoption will remain limited.
💡 NaijaBuzz Take is AI-assisted editorial opinion, not established fact. Full disclaimer →
