By Rukayat Moisemhe

Credit finance experts have called for the prioritisation of financial literacy in school curriculums as a means of empowering both businesses and individuals to navigate lending.

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”.

According to them, financial literacy enhances economic development by enabling informed financial decisions and promoting stability.

Mr Gbemi Adelekan, Managing Director of Trafalgar (Kwikpay Credit), stated that only 38 per cent of Nigerians were financially literate, while 40 million remained financially excluded.

He noted that although Nigeria’s financial landscape was evolving rapidly, many Nigerians lacked basic financial knowledge, which in turn affected economic growth.

Adelekan explained that this limited financial knowledge impacted access to credit, highlighting the need for solutions and initiatives to improve financial literacy.

He added that financial literacy was 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.

“Despite efforts, around 40 million Nigerians remain financially excluded, leaving a significant gap in the formal financial system.

“While financial knowledge can drive inclusion, without proper guidance, individuals may still fall victim to fraud and illegal financial schemes.

“Financial education is not widely integrated into formal curricula, making it difficult for young Nigerians to acquire essential money management skills,” he said.

Adelekan emphasised 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 revitalisation.

“Financial literacy will break the cycle of poverty, create jobs, foster entrepreneurship, support national development, and encourage responsible financial decisions, among others.

“While digital loans play a crucial role in expanding credit access, government regulation is needed to protect borrowers and lenders,” he said.

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, could empower individuals to make informed choices.

Peters added that understanding fundamental financial concepts, such as budgeting and credit utilisation, was essential for anyone seeking financial stability in uncertain economic conditions.

According to him, a broader understanding of economic factors affecting financial management can help individuals make strategic decisions regarding credit and investment opportunities.

“Utilising budgeting tools, apps, and financial advisors can enhance your financial acumen, ensuring that you are well-prepared for any economic opportunities.

“In challenging economic periods, enhancing financial skills can foster resilience, and knowledge about credit and financial planning can safeguard against financial pitfalls,” he said.

Peters urged businesses to stay informed about trends in financial literacy, as this could provide insights into effective financial management strategies and improve creditworthiness.

He added that businesses must understand 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.

“Boosting financial literacy, particularly regarding credit scores, empowers individuals to make informed decisions, improving their economic circumstances.

“Engaging in financial education programmes can provide essential skills for managing finances and understanding credit terms, ultimately leading to better decision-making,” he said. (NAN)

Edited by Olawumi Ashafa