Nigeria is facing significant challenges in achieving financial inclusion due to growing concerns about data privacy and security. While the government and industry stakeholders have invested heavily in expanding internet connectivity and mobile penetration for years, experts indicate that the critical issue now is building trust in how personal data is managed. The public's willingness to engage with the formal financial system may hinge on assurances regarding privacy and the ethical handling of their data, which are becoming decisive barriers to broader participation.

The Central Bank of Nigeria aimed to reduce the adult financial exclusion rate to 20 percent by 2020 as part of its National Financial Inclusion Strategy. Despite these efforts, the 2020 exclusion rate was reported at a staggering 36 percent, indicating that significant disparities in access to financial services persist. There remains a pressing need to understand that infrastructure alone cannot address the complex layers of consumer confidence, especially in a digital environment where privacy concerns are paramount.

Industry leaders are shifting their focus from the challenges of connectivity to those related to data management and user trust. They acknowledge that while boosting connectivity is vital as a necessary step, it's not sufficient in itself. For Nigeria to realize its financial inclusion objectives, a robust framework that ensures the protection of consumer data must be established, helping to alleviate fears and encourage more individuals to enter the financial system.