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U.S. based business and economic consultant, Isaac Oyegbade, has called on governments in Nigeria and other emerging economies to actively promote competition in their business landscapes as a way to expand financial access and foster economic development.
Currently completing his MBA degree at Duke University, Oyegbade previously worked with leading consulting firms in Nigeria and England, advising several business leaderson crucial business issues and helping companies raise significantcapital from international stock markets.
Oyegbade noted that financial inclusion is an essential driver of economic development in emerging markets.He said while first-movers:businesses that gain competitive advantage by being the first to market a product or service, tend to seek market monopolies in emerging economies, what government should be doing is actively promoting competition.
According to Oyegbade, the role of competition in fostering innovation, improving service delivery, and reducing transaction costs has been pivotal in expanding financial access to previously underserved population and has underpinned economic development among those groups.
Noting the success of fintech companiesin West Africa where increased competition has led to significant traction in financial access and forced market players to make services more affordable, Oyegbade credited mobile money service providers, like M-Pesa and Paga, with driving unprecedented economic development, and bringing financial access to 56.2% of adults in the West African Economic and Monetary Union (WAEMU)region.
Speaking about India, Oyegbade said government initiatives likePradhan Mantri Jan Dhan Yojana (PMJDY) aimed at universal financial inclusion have been complemented by the rise of fintech companies, and that competition between firms like Paytm, PhonePe, and Google Pay has dramatically increased access to digital financial services.
On whether governments of other developing countries can take any lessons from this, Oyegbade said while early market leaders helped shape the financial services landscape in West Africa and India, government commitment to promoting a competitive environment has been critical to the prevalence of financial inclusion technologies, and that other developingcountries should emulate this model.
According to him, with government support, fintech companies have developed innovative solutions to overcome barriers such as limited banking infrastructure, high transaction costs, and lack of financial literacy.
He added that increased competition has not only improved service delivery but also lowered transaction costs, making financial services more affordable and accessible to all segments of the population.
“As financial inclusion expands, economic development follows. In both West Africa and India, greater access to financial services has empowered small businesses, facilitated investment, and improved household resilience against financial shocks,” Oyegbade said.
