Experts in Nigeria’s financial sector have explored ways Nigerians can access credit opportunities and become financially literate in a bid to boost the country’s staggering economy.
Speaking during a webinar put together by FirstCentral Credit Bureau, titled ‘Exploring Credit Opportunities and Boosting Financial Literacy in a Challenging Economy,’ Deji Peters, MD, First Central Credit Bureau and host of the webinar said there is a need to understand the role of credit scores today, the connection between credit and financial decisions, enhance financial literacy through credit knowledge and general tips for managing credit score effectively.
He said a solid understanding of how credit scores impact low approvals is crucial for navigating the lending landscape in today’s economy.
“Credit scores significantly affect the terms and conditions of loans including interest rates and repayment plans affecting overall financial health,” Peters said.
Peters stressed that targeted credit education initiative can empower individuals with the knowledge to utilize credit wisely, enhancing their financial stability.
He also said there is also a need to understand government assistant programs for credit support.
Peters said the webinar was organized to give people an opportunity to draw from the rich experience of some of the keynote speakers and to be able to learn from the things that these speakers have been able to apply from their practical capacities and to also draw from the wealth of their experiences.
“It is important to say at this point that no nation or individual can exist without some form of exchange. In fact, the basis of the whole economics is that there must be some form of exchange and some supporting systems.
“The speakers here have managed supporting systems and exchange processes. These people have amazing experiences. So this gives us the opportunity to learn from some of the best minds within the sector” he said.
In his keynote address, Gbemi Adelekan, chief client officer of Kwikpay Credit, a digital money lending service said micro and digital loans are powerful tools to provide credit to the marginalised and the poor and the reason is that it is easier for them to access collateral free credit.
Adelekan however noted that the problem is with the credit making the impact, in terms of them being able to manage their finances well and understanding the finances and how to use these finances to improve themselves.
“Only 38 percent of Nigerians are financially literate, 40 million Nigerians remain financially excluded and that is why financial literacy is very low in rural areas and among youths.
“The financial landscape in Nigeria is evolving rapidly and many Nigerians lack financial knowledge, affecting economic growth,” he explained.
He said financial literacy matters because it enables people to make better financial decisions, avoid debt traps, repay loans on time and avoid scams.
He said financial literacy is also crucial for credit management, enables people to avoid high-interest loans, borrow responsibly and reduce financial distress.
“Around 40 million Nigerians remain financially excluded, leaving a significant gap in the formal financial system. The lack of access to traditional financial services has paved the way for fin techs and digital lenders, leveraging technology to provide credit and financial solutions to the unbanked and under banked,” Adelekan said.
He however noted that rising internet and smartphone penetration is creating vast opportunities for tech startups to bridge the gap with affordable financial services.
During the Panelist session, Gbenga Balogun Head of Credit Administration, First Bank moderated discussions with other industry experts. Some key insights from the panel includes:
Olusegun Oladipo CRO, Unity Bank. Advised individuals to focus on saving and creative financial solutions rather than borrowing for consumption to avoid debt traps.
Bankole Adesanmi Head, Credit Admin, UBA. Stressed that one’s financial attitude determines financial success, urging people to borrow responsibly in the long run.
Damilola Samuel Owoeye Head, PPD Retail Credit, Stanbic IBTC Bank. Emphasized the importance of maintaining a good credit history, as every borrowing activity contributes to an individual’s credit profile. He also warned against sharing financial information to prevent identity fraud and unauthorized debts.
A highlight of the event was the “Learn and Win” segment, where participants who answered questions correctly received shopping vouchers worth up to ₦50,000. Congratulations to all winners!
Financial literacy is not just crucial for economic growth but also for individual financial stability. Understanding credit access, proper financial planning, and the risks associated with borrowing will empower individuals to make informed financial decisions, ultimately fostering a more resilient economy.
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