Nume Ekeghe
The Chief Executive Officer, of Guaranty Trust Holding Company Plc, Mr Segun Agbaje, has emphasised the importance of the federal government adopting electronic payment methods across all sectors to drive digital economy.
Agbaje reiterated that for Nigeria to thrive in the digital landscape, a fundamental shift is required from traditional payment methods to technology-driven solutions.
He advocated for a comprehensive embrace of digital payment platforms, citing their transformative potential in streamlining processes, enhancing efficiency, and fostering economic growth.
Agbaje stated this while giving his keynote address at the Nigeria Banking Connect 2024 organised by Infosys Finacle, over the weekend.
According to him: “We need a government from an incentive perspective when you are a government that is ready to make all payments or incentive payments, whether it’s pension payments on a digital platform so that we can bridge the chicken and the egg.
“In terms of business readiness, there are some key foundations that we need to be part of what we call a digital economy. And what is a digital economy, a digital economy is a part of economic alpha that you get from digital technology, and you need all the things for it to work properly.
“Most of it is not rocket science. You must have enabling macros to do it, you must have data privacy, you must have competition, you must have cyber security, open banking, and Application Programming Interface (APIs), these are all required to have a digital economy.
“So, Africa 2030 we have to have internet connectivity, we have to make it more affordable, we have to have proper financial inclusion, not cash in, cash out. You have to have a digital economy where people can borrow, they can make payments, they can deposit.”
Highlighting the misconception that mobile payments are the central focus of financial inclusion in Africa, he underscored the broader array of financial services provided through digital platforms and stressed the significance of cultivating a sustainable model that integrates these platforms for insurance, lending, and payments within a unified ecosystem.
He said: “Financial inclusion contrary to what we think in Nigeria is not cash in, or cash out. Financial inclusions revolve around increasing a sustainable model where you can use digital platforms to do insurance, lending, and payments. And that’s what we’ve done very successfully.”
In envisioning Africa’s digital future by 2030, Agbaje outlined key objectives, including improved internet connectivity, affordability, robust financial inclusion strategies, and the establishment of a digital economy facilitating borrowing, payments, and deposits.
He urged governments to incentivise the shift towards digital platforms, citing the need for initiatives like pension payments on digital platforms to bridge the transition from traditional to digital payment methods.
He further expressed confidence that Africa has the potential to become a digital continent by 2030, with the phased eradication of traditional payment methods in favour of comprehensive digital solutions.
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