By Felix Khanoba
Nigeria’s quest for sustainable economic development depends largely on building a financial system that is efficient, inclusive and responsive to the country’s cultural realities, Professor Wilfred Ugwuanyi has said.
The Professor of Banking and Finance made this known while delivering the 39th Inaugural Lecture of the National Open University of Nigeria (NOUN) on April 30, 2026, at the institution’s headquarters in Abuja.
In a statement issued by NOUN’s Director of Media and Publicity, Dr. Ibrahim Sheme, Ugwuanyi stressed that informal financial systems continue to serve as the “backbone of financial survival” for millions of Nigerians, especially those in rural areas.
Presenting his lecture titled “Technological Innovations and Informal Financial Institutions: Implications for Economic Development Amidst Cultural Diversity in Nigeria,” the scholar reviewed the progression of payment systems from barter trade to contemporary digital solutions. He noted that the limitations of barter—particularly the challenge of double coincidence of wants—necessitated the emergence of money, a shift further shaped by colonial influences that introduced formal banking structures.
He identified key innovations such as mobile money services, electronic funds transfers, Automated Teller Machines (ATMs) and digital banking platforms as major drivers of change, enhancing transaction efficiency, transparency and access.
According to him, these technologies have played a significant role in broadening financial inclusion, particularly among populations that were previously excluded from the formal financial system.
Despite these gains, Ugwuanyi warned that access to such innovations remains uneven across the country.
He pointed to poor infrastructure, low internet connectivity in rural communities, cybersecurity risks and high levels of digital illiteracy as major obstacles. He also drew attention to issues of trust, observing that past experiences and cultural attitudes have left many Nigerians wary of formal and digital financial platforms.
A key highlight of the lecture was the continued importance of informal financial institutions.
Ugwuanyi described rotating savings and credit associations, cooperative groups, thrift collectors and other community-based lending systems as integral to Nigeria’s socio-cultural structure. He explained that these arrangements function not only as financial channels but also as social systems built on trust, shared identity and mutual assistance.
He further examined the role of social capital, noting that interpersonal relationships, communal trust and shared values act as informal guarantees within such networks. These elements, he argued, often provide a level of resilience that formal financial institutions struggle to achieve, particularly in culturally diverse settings.
Speaking on financial technology (fintech), Ugwuanyi acknowledged its capacity to transform the sector through improved access, speed and efficiency.
However, he cautioned that without thoughtful integration, such innovations could exclude the very communities they are designed to serve.
He called for a regulatory environment that balances innovation with consumer protection, urging policymakers to incorporate informal financial systems into the broader financial framework rather than replace them. He added that culturally aware strategies are crucial to achieving genuine financial inclusion.
The professor also advocated for tailored financial literacy initiatives that take into account Nigeria’s linguistic diversity, cultural differences and varying levels of technological familiarity.
“Nigeria’s diversity should be seen as an asset, not a barrier,” he said, warning, “A one-size-fits-all approach will fail.”
He further called for closer collaboration between government agencies, academic institutions, financial service providers, technology firms and local communities to create a more resilient and inclusive financial ecosystem.
In his remarks, the Vice-Chancellor of NOUN, Professor Uduma Oji Uduma, described inaugural lectures as “a platform for intellectual engagement.”
He noted that the university’s student population mirrors the socio-economic conditions discussed in the lecture, adding that many students depend on informal financial systems in their everyday lives.
Represented by the Deputy Vice-Chancellor (Administration), Professor Shehu Adamu, the Vice-Chancellor stated: “Just as fintech is transforming financial inclusion, NOUN has leveraged technology to democratise education across geographical and cultural boundaries.”
He added that universities have a responsibility to produce knowledge that shapes policy, empowers communities and bridges the divide between theory and practice, commending the lecture for its contribution to national discussions on financial inclusion and economic development.
In her vote of thanks, the Deputy Vice-Chancellor (Technology, Innovation and Research), Professor Christine Ofulue, reiterated the institution’s dedication to academic excellence and national development.
