The Programme Director for Lagos Blockchain Week, Chukwuemeka Mbaebie has underscored the crucial role of blockchain technology in bolstering financial inclusion across Nigeria through its secure and transparent transaction capabilities.
Mbaebie, however, stressed that considerable challenges persist in realising this potential, particularly concerning regulation and understanding.
He said this during the second edition of the Payments Forum Nigeria (PAFON) event on Thursday in Lagos.
The theme of the event was: “Bridging the Financial Inclusion Gap: The Role of Fintech, Blockchain and AI.”
“Its widespread adoption in Nigeria is currently hampered by significant regulatory challenges and a noticeable gap in understanding the technology among key stakeholders,” he said.
He stressed the need for regulators to develop a comprehensive grasp of both the advantages and inherent risks associated with blockchain technology.
Mbaebie emphasised that the existing disparities in understanding between fintech companies, traditional banks, and regulatory bodies create obstacles to the smooth integration and adoption of blockchain solutions.
Mbaebie reiterated that in spite of blockchain’s promise in revolutionising financial inclusion through enhanced security and transparency, the prevailing regulatory hurdles and the lack of comprehensive understanding act as major impediments.
He stressed that without addressing these challenges, the potential benefits of blockchain in providing open and equitable access to financial services and reducing reliance on intermediaries could not be fully realised.
Mbaebie underscored the importance of establishing a clear and enabling regulatory framework to overcome the existing challenges and effectively harness the immense potential of blockchain in driving financial inclusion.
He noted that fostering robust collaboration and open communication among stakeholders, regulatory bodies, financial institutions, and fintech companies, was crucial for navigating and ensuring the successful integration and adoption of blockchain technology in the Nigerian financial sector.
He added that educational initiatives to bridge the understanding gap and promote broader acceptance of blockchain technology was essential.
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