Stakeholders have advised the federal government on the need to underwrite risks and create a special fund that would promote the growth and expansion of Financial Technology (FinTech) in the country.
This was the consensus at the third edition of the Grow Nigeria Conversation (GNC) which focused on using FinTech to create opportunities, employment and wealth.
The event which recently took place at the Co-Creation Hub, Lagos, drew experts and stakeholders in the FinTech space both within and outside the country.
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Harping on the growth of FinTech in developed countries, Convener of the GNC and immediate past Senate President, Dr. Abubakar Bukola Saraki, emphasised on the need for government intervention in the sector with the view of tackling the rising unemployment rate especially among young Nigerians.
“With over 33.3 per cent or 23 million of Nigeria’s working-age population out of work, we must begin to look into how we can create more job opportunities for more young Nigerians using FinTech,” Saraki said.
“We must discuss the strategic interventions that the government and the private sector can embark on to enable financial technologies expansion across the country.
“As we do so, we must learn what other countries are doing. We must look at how Fintech companies in Asia-Pacific pulled in $2.35 billion in investment during the first three months of this year alone, more than the total amount raised in the first half of 2020,” he added.
Investment Lawyer at Nigeria’s Office of Trade Negotiation, Tola Onayemi, noted that the government needs to do less of “throwing” money on issues and look more at underwriting risks.
“Rather than throw a billion into the tech space, the government can underwrite risks at the same amount so tech companies can compete in a more favourable environment.
“In countries and industries where you want people to take big risks, you need to underlie it with insurance. The reason why credit is expensive and financial tools cannot get to places in Nigeria is because of the risk involved.
“The insurance system in Nigeria should become active so as to encourage tech companies and also reduce the cost of products and service in the country,” he advised.
Also, the chief executive officer of Risevest, Eke Urum, stated that an investment in FinTeh is an investment into the future “because in five-ten years from now, the amount of wealth that would be created would be ten times more than that initial investment”.
Founder of Verdant AgriTech, Nasir Yammama, decried the poor use of data by the government and policymakers in the country, adding that bad data could lead to making bad decisions.
The Grow Nigeria Conversation was organised and hosted by the Africa Politeia Institute (TAPI) and the Adopt a Goal for Development Initiative (AAGI).
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