Nigeria cannot achieve sustainable economic growth without a functional, inclusive and culturally responsive financial system, a Professor of Banking, Wilfred N.J. Ugwuanyi, has said.
Wilfred Ugwuanyi stated this while delivering the 39th inaugural lecture of the National Open University of Nigeria (NOUN) in Abuja, entitled: “Technological Innovations and Informal Financial Institutions: Implications for Economic Development Amidst Cultural Diversity in Nigeria.”
Prof Ugwuanyi emphasised that, informal financial structures remained the backbone of financial survival for millions of Nigerians, particularly in rural communities.
This is as he traced the evolution of payment systems from barter to modern digital platforms, explaining that the inefficiencies of barter, especially the problem of double coincidence of wants, led to the adoption of money, a transition influenced by colonial economic systems that introduced formal banking.
Ugwuanyi identified mobile money platforms; electronic funds transfer systems, Automated Teller Machines (ATMs) and digital banking applications as transformative tools that have improved transaction speed, transparency and accessibility.
According to him, these innovations have significantly expanded financial inclusion, particularly among previously underserved populations.
However, the benefits of the advancements, he cautioned, are unevenly distributed as he cited inadequate infrastructure, limited internet penetration in rural areas, cybersecurity concerns and widespread digital illiteracy as key barriers.
He also highlighted trust deficits, noting that many Nigerians remain sceptical of formal and digital financial systems due to past experiences and cultural dispositions.
Ugwuanyi described savings and credit associations, cooperative societies, thrift collectors and community-based lending groups as deeply embedded in Nigeria’s socio-cultural fabrics.
The university lecturer also advocated targeted financial literacy programmes that reflect Nigeria’s linguistic diversity, cultural nuances and varying levels of technological exposure.
The vice-chancellor, Prof Uduma Oji Uduma, described inaugural lectures as a platform for intellectual engagement.
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