E-Financial
Policy, Regulation Should Bolster Innovation To Ensure Financial Inclusion Is Achieved
By Daniel Monehin
Walk through bustling marketplaces in Africa and you will see a substantial amount of money changing hands, as merchants and consumers haggle over the goods and services. What stands out is just how many of these transactions are conducted using cash, and the reason for this is because most people don’t believe they have any other pragmatic option.
There is a large number of unbanked or underbanked people on the continent, and so many individuals that don’t save or have a financial history with a formal financial institution and are therefore found on the fringes of financial services – where most transactions are carried out with cash. What this typically creates is a vicious cycle that serves to prevent most of these individuals from accessing critical financial services to better manage their finances, grow their businesses or protect themselves against eventualities.
Financial inclusion remains a challenge, particularly in developing countries. Only just over 30 percent of Sub-Saharan Africans, for instance, have any formal account. There is a collective focus by both the private and public sector on the need to find ways to bring greater numbers of people into the financial mainstream and improve their livelihoods.
One of the areas that has the greatest potential to narrow the margin of exclusion is policy and regulations. Policy surrounding financial inclusion has garnered considerable attention in the last few years, as the importance of inclusion has been aligned with financial integrity, stability and literacy.
Policy makers face the ultimate juggling act as regulatory frameworks and policies need to find the balance between providing the necessary support that will bring citizens into the formal financial fold while simultaneously ensuring that these requirements do not discourage access to critical financial services by stifling individuals’ abilities to transact.
What is clear is that it is simply impossible to make tangible progress by working in isolation. It takes collaboration between players in both the public and private sectors to bring their specific area of expertise to the table with the view to develop holistic strategies and policies that will enable inclusion.
The good news is that industry stakeholders across the board have largely realised this and joined forces through organisations like the Alliance for Financial Inclusion (AFI) to share knowledge and engage to formulate and implement these policies. AFI is led by its members, comprising mainly financial regulatory institutions such as Central Banks, superintendence’s and Ministries of Finance from developing countries. The network currently includes members from 94 countries working together to accelerate the adoption of proven and innovative financial inclusion policy solutions with the ultimate aim of making financial services more accessible to the world’s unbanked. Mastercard is a proud member of AFI and continues to collaborate to ensure open dialogue with focus on building a strong network where solutions can be found.
What has made these platforms so impactful is that the regulators and policy makers understand the unique African context and have been formulating policy solutions that speak to this. Advancing financial inclusion through digital financial services, for example, has been a top priority and continues to dominate the agenda because of the role that mobile money, new tech and innovation are playing in allowing Africans to pay for goods and services safely and easily.
Although mobile money is a global disruptor, its impact has been especially noticeable in Africa, where mobile penetration continues to grow and where it has already proven to be a game changer in terms of providing affordable financial services.
Using a tool that people already hold in their hands means that more people can be connected to an interoperable financial ecosystem at a fraction of the cost – backing this up is the fact that there are nearly 280 million registered mobile money accounts in Sub-Saharan Africa, compared to 178 million bank accounts.
As such, driving policy that supports mobile-based payments as a critical enabler will remain a core focus going forward. But even with mobile and digital finance recognised as an answer of sorts to facilitating financial inclusion, that is only half the battle. There needs to be continuous innovation and advancement in this space to ensure that all Africans have the opportunity to be financially included – and the answer lies in collaboration across the public and private sectors to leverage each other’s strengths.
Nigeria Revenue Service (NRS) says its replacement with the defunct Federal Inland Revenue Service (FIRS) will overhaul the architecture of the country’s revenue administration.
Dr Zacch Adedeji, the executive chairman of NRS, said this in a television interview monitored from Abuja.
The News Agency of Nigeria (NAN) reports that the provision of the recently enacted tax reform laws changes the nomenclature of the country’s apex tax authority from FIRS to NRS.
According to Adedeji, NRS is not branding. It is a total institutional upgrade moving from fragmented revenue administration to a modern, digitalised, centralised and intelligence-driven system.
He said that under the new framework, multiple tax and revenue-related functions previously spread across agencies have been consolidated, with a stronger emphasis on data integration, automation, and reduced human discretion.
He dismissed allegations that the country’s newly enacted tax reform laws were altered after passage by the National Assembly.
“Only the officially gazetted Acts carry legal authority and are binding on taxpayers and administrators,” he said.
The NRS boss said that an Act of the National Assembly only became effective after Presidential assent and official gazetting, with the gazetted version constituting the authoritative text in the event of disputes.
“Revenue agencies, courts, and taxpayers are therefore guided solely by the gazetted law, not draft bills, committee reports or chamber debates.
“Neither the executive nor the revenue authority has any incentive or legal capacity to alter the law after passage,” he said.
Adedeji said that the overhaul of the NRS is also designed to support the Federal Government’s broader fiscal objectives.
According to him, Nigeria’s tax-to-GDP ratio has improved in recent years, rising to about 13.5 per cent as at October 2025.
“But it remains below the African average and well short of levels seen in peer emerging markets,” he said.
Adedeji said that the overall aim is on taxing profits and returns rather than capital or investment.
“We are not going to tax poverty; we want to tax prosperity,” he said.
Securities and Exchange Commission (SEC) has announced plans to review its rules to encourage the listing of Small and Medium Enterprises (SMEs) on the nation’s stock exchanges as part of efforts to deepen the capital market and stimulate economic growth.
According to a statement from the Commission, Agama said the rules review would focus on incentivising listings from small and medium-scale industries, particularly in manufacturing, automotive, pharmaceuticals and finished goods. He said access to long-term capital through the market would help revive factories, reduce import dependence, create jobs and position “Made in Nigeria” products for global competitiveness.
Beyond SME listings, Agama said the Commission would prioritise the mobilisation of long-term capital to bridge Nigeria’s infrastructure and sectoral financing gaps. He added that regulatory frameworks would be streamlined while innovative financial instruments would be aggressively promoted to channel disciplined capital into productive sectors of the economy.
He disclosed that in 2026, the SEC would facilitate the issuance of infrastructure bonds, green bonds, municipal bonds and infrastructure-focused funds to attract long-term domestic and international capital. According to him, the objective is to finance roads, power, rail, housing and digital infrastructure, while making it easier for state governments and infrastructure firms to access the capital market efficiently.
The SEC boss also said the Commission would promote the listing of agribusiness firms and introduce tailored listing windows for agricultural cooperatives and value-chain companies. Through commodity exchanges, agricultural investment trusts and commodities-linked instruments, he said agriculture would be de-risked, fair pricing ensured for farmers, food security strengthened and wider citizen participation encouraged.
On housing, Agama disclosed plans to revitalise Real Estate Investment Trusts (REITs) and introduce innovative affordable housing bonds. These initiatives, he said, would unlock capital for mass housing delivery, create new asset classes for investors and move millions of Nigerians closer to home ownership.
He further said the Commission would support Nigeria’s power sector through infrastructure bonds, green energy bonds, project-backed securities and public-private investment vehicles to fund grid expansion, renewable energy and energy transition projects.
Agama said the SEC is entering 2026 with a renewed resolve to reposition the capital market as a solution provider to Nigeria’s economic and developmental challenges, adding that the Commission is committed to transforming the market into a key driver of sustainable growth.
has reinforced its position as one of the major forces underpinning Nigeria’s payments ecosystem after processing more than ₦100 trillion worth of transactions in 2025, highlighting its expanding role in the country’s digital economy.
The payment technology platform, licensed by the Central Bank of Nigeria as a Switch, Payment System Service Provider, Payment Terminal Service Provider and Super-Agent, operates largely behind the scenes, enabling millions of daily transactions across the public and private sectors.
From salary payments and loan repayments to school fees, pensions, electricity bills and government revenues, Remita supports a broad range of financial activities undertaken by individuals, businesses and institutions across the country. Industry observers often describe its function as the “rails” on which Nigeria’s payment system runs — critical infrastructure that is most visible only when it fails.
According to the company, the volume of transactions processed in 2025 was driven not by one-off spikes but by consistent, everyday activity across transaction switching for financial institutions, corporate and public-sector payments, and consumer financial flows. Remita also facilitated access to more than 15,000 products and services across 180 countries, extending its reach beyond Nigeria’s borders.
Throughout the year, the platform played a central role in revenue collection and disbursements for federal, state and local governments, ensuring the smooth payment of salaries and the continuity of public services.
Analysts note that such reliability is increasingly seen as essential to maintaining public trust in digital governance systems.
On a typical day, Remita enables a wide spectrum of transactions nationwide: a civil servant in Gombe receiving her salary, a contractor in Kogi getting paid, a student in Enugu settling university fees, residents in Abuja paying for water services, property owners in Lagos paying land use charges, and motorists paying traffic fines anywhere in the country.
In 2025, Remita also took steps towards deeper continental relevance through integration with the Pan-African Payment and Settlement System (PAPSS), a move aimed at simplifying cross-border payments within Africa and reducing reliance on third-party currencies.
‘DeRemi Atanda, managing director of Remita, said the company’s focus is on building infrastructure capable of supporting a more interconnected African digital economy. “Our responsibility is to build systems that can support that future. We are not just building for Nigeria. We are building infrastructure that can support Africa’s digital economy,” he said.
Artificial intelligence also featured prominently in Remita’s strategy during the year, with the company releasing a fintech AI report that positioned Nigeria within global discussions on the use of AI in financial services.
The report signalled a shift towards payment systems that are more predictive and responsive, rather than merely automated.
Financial inclusion remained another key focus. Through partnerships with agent networks such as Moniepoint, NIPOST and Paga, Remita expanded access to financial services in underbanked communities, bringing digital payment options closer to individuals and small businesses outside traditional banking channels.
Looking ahead, Remita is preparing for the public launch of a next-generation mobile app in the first quarter of 2026, following a public beta in late 2025. The app is expected to offer features including multi-bank account management, esusu groups, recurring payments, international transactions in local currency and discounted airline tickets.
As Nigeria and Africa push towards deeper economic integration, industry analysts say platforms like Remita — reliable, scalable and largely invisible — are likely to play an even more critical role in shaping the continent’s financial future.
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