The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, has said that low access to credit is pushing more Nigerians to loan shark applications, which further worsens poverty.
He said this during the launch of a new digital bank, Kayi Bank, in Abuja on Thursday.
The minister stressed the need for financial inclusion in the country, which can be strengthened through digital banks.
He said, “It is extremely important for you to have inclusive growth in society, and that is financial inclusion. So, what you are launching today is a strong contribution to that mandate of inclusive growth.”
Bosun Tijani stressed that there is no economic growth without financial inclusion.
“Because financial inclusion contributes significantly to economic growth by increasing the number of individuals who do businesses that can participate in the formal economy,” he added.
He noted that the lack of access to credit has made people go after risky and informal financial practices.
The minister said, “When individuals have access to banking services, they are less likely to resort to risky and informal financial practices. I am sure you all recognize that when people don’t have access to credit, they don’t have access to financial services, they have to go take loans from people who will ask them to pay significant interest. By doing so, they will continue to be in poverty, because they will continue to try to balance up and pay those commitments, which typically is difficult to combat.”