Personal finance and financial planning have been highlighted as key to boosting financial inclusion and bank the unbanked in Nigeria’s huge informal economy.
While Nigerian informal economy is estimated at about 57 percent of the national economy, only 35 million adults representing 40 percent of the adult population are financially excluded, while 29 million were included, representing 33 percent of the adult population, according to EfinA, a financial inclusion research firm.
Taking their financial futures more seriously and preparing for future contingencies through investing planning and seeking professional planning advice can extend the reach of the banking sector.
“Money loses value when stored, hence the need for financial planning and investment,” said Bismarck Rewane, CEO, Financial Derivatives Company, at the formal book launch of ‘A-Z of Personal Finance,’ a foremost book on personal finance written by former banker and asset manager, Nimi Akinkugbe.
The book, launched yesterday, provides a comprehensive guide and walks readers through their finances as they pass through their careers, retirement and beyond.
“The purpose of the book is to remove the mystique around savings and investment,” the author, Nimi Akinkugbe, said at the launch, saying “when I started my career at the bank, I saw that a staggering number of people were just a stone’s throw away from financial disaster, due to the absence of a savings and investment plan.”
According to her, several high paying executives went from receiving bumper pay packages to having nothing to show for it at the end of their careers, due to a lack of financial planning.
“In Nigeria, financial literacy is not taught in schools, and is not included in the curriculum, so there has to be a way to impart the knowledge of personal finance on young people, to learn about personal financial management at an early age, she said.
Also speaking at the launch was Kayode Akinkugbe, CEO of FBN Capital, who said: “To increase the chances of financial security in the future, it makes sense to focus on investments.
“Financial planning is essential. One needs to decide how much to put aside, the investment horizon, and the product to invest in.”
“I am very passionate about financial capability. What will transform Nigeria or any other nation is a focus on the financial capability of individuals,” Arunma Oteh, vice president and treasurer, World Bank, and former director-general, Securities and Exchange Commission, said at the launch.
