Lagos: Credit finance experts have called for the prioritization of financial literacy in school curriculums as a means of empowering both businesses and individuals to navigate lending.
According to News Agency of Nigeria, the experts made this call at the First Central Credit Bureau event on Thursday in Lagos, themed: ‘Exploring Credit Opportunities and Boosting Financial Literacy in a Challenging Economy’. They emphasized that financial literacy enhances economic development by enabling informed financial decisions and promoting stability.
Mr. Gbemi Adelekan, Managing Director of Tragalfar (Kwikpay Credit), highlighted that only 38 percent of Nigerians are financially literate, while 40 million remain financially excluded. He noted that although Nigeria’s financial landscape is evolving rapidly, many Nigerians lack basic financial knowledge, which in turn affects economic growth. Adelekan explained that this limited financial knowledge impacts access to credit, highlighting the need for solutions and initiatives to improve financial literacy.
He added that financial literacy is particularly low in rural areas and among young people, leading many to fall into debt traps, financial fraud, and scams. ‘A large portion of Nigerians have not received proper financial education, limiting their ability to make informed financial decisions,’ he said. ‘Despite efforts, around 40 million Nigerians remain financially excluded, leaving a significant gap in the formal financial system.’
Adelekan emphasized the need to leverage technology, stating that digital financial technology, driven by increasing internet penetration, has become a key tool for enhancing financial inclusion in Nigeria. He advocated for financial education to begin at a young age through structured learning, as such initiatives would have an impact on the country’s economic future. ‘Financial literacy can be a catalyst for economic revitalization,’ he stated.
Dr. Oladimeji Peters, Managing Director of First Central Credit Bureau, noted that long-term financial success depends on continuous learning about financial products, including credit options. This, he said, can empower individuals to make informed choices. Peters added that understanding fundamental financial concepts, such as budgeting and credit utilization, is essential for anyone seeking financial stability in uncertain economic conditions.
He urged businesses to stay informed about trends in financial literacy, as this could provide insights into effective financial management strategies and improve creditworthiness. Peters highlighted the importance of understanding the role of credit scores in determining an individual’s ability to secure loans and credit, significantly influencing financial decisions in a challenging economy.
‘A higher credit score opens doors to better financial products, impacting choices such as mortgage rates, credit limits, and insurance premiums,’ Peters said. ‘Boosting financial literacy, particularly regarding credit scores, empowers individuals to make informed decisions, improving their economic circumstances.’