Financial institutions in Nigeria and their regulators have a lot of lessons to learn from GSM service providers when it comes to market penetration and strategies for creating products awareness.
Speaking during A Two-Day Workshop for Business Editors and Members of Finance Correspondents Association of Nigeria (FICAN) under the theme: The Nigerian Banking Sector: Challenges, Opportunities and the Way Forward, Organized by the Nigeria Deposits Insurance Corporation (NDIC), At Coronation Hall, Government House, Kano, 23rd-24th November, 2017.
Jerry Uwah in his paper titled “the role of the media in enhancing financial literacy and consumer protection” presented at ongoing Annual Finance Correspondents Association of Nigeria (FICAN) Workshop sayings Global System for Mobile Communications (GSM) service providers have overwhelmed the market in their 16 years of existence adding that but, providers of financial services are still begging for patronage from a very active population.
Uwah cited that banking services is more than 120 years old in Nigeria compare with 16 years of GSM operations.
He also noted that yet, as at the first quarter of 2014, some 59 million out of the nation’s estimated 98, 533, 553 adults were outside the banking network.
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“That suggests that just about 35 million adults have access to banking services as at the time of the survey. On the contrary, the number of GSM telephone subscribers in Nigeria hovers around 130 million.
“That overwhelming penetration was attained in just 16 years.
Uwah pointed out that the yawning gap between mobile phone penetration and access to financial services is a source of concern to the regulators of the nation’s financial system.
“If the number of adults without access to banking service is worrisomely high, then the number of those who are not financially literate would make anyone shudder.
“The Central Bank of Nigeria (CBN) defines financial literacy as “the possession of knowledge and skills by individuals to manage financial resources effectively to enhance their economic well-being”.
“That definition throws up a number of factors that should be considered in this paper. The most important factor is that the CBN definition of the subject suggests that financial literacy goes beyond owning a bank account.
“The figures mentioned above seemingly restrict financial literacy to ownership of a bank account, but the CBN definition of the subject takes it beyond that.
“It covers other financial sectors as pension, insurance, mortgage, bonds, treasury bills windows and the capital market. 
“Financial literacy figures in Nigeria become more deplorable when one takes the subject beyond ownership of bank accounts. Let us examine the level of financial literacy in each of the financial sectors. We will begin with the capital market.
Uwah in his paper titled the role of the media in enhancing financial literacy and consumer protection tutored the financial stakeholders that the media is a strong partner in the struggle to enhance financial literacy and consumer protection.
Of both regulators and operators in the financial ecosystems need the media in the bid to capture the huge chunk of the nation’s adult population still outside the financial network. That can only be done through enhancement of financial literacy, he added.
According to him “a number of studies have fingered women, secondary school pupils and the unemployed as segments of the market where financial literacy is lowest.
“The problem can be tackled through a symbiotic relationship between the media, operators and regulators of the financial system.
He said the regulator should sponsor newspaper articles directed at the deficient segments of the market, while the operators can do similar things that would enlighten consumers on the efficacy of their products targeted at each segment of the market.
In his words: the regulator of the pension industry needs massive public enlightenment programmes on radio, television and newspapers to enlighten workers on their rights to enable them act as whistle-blowers when their employers refuse to remit their pension deductions.
“Some of the workers do not even know that their employers owe them the obligation.
“The National Insurance Commission (NICOM) must use the media effectively to launder the image of underwriters in the country with a view to enhancing premium income. 
Uwah went ahead to set agenda for NICOM that it should design radio programmes that would enlighten motorists on how to derive maximum benefit from Third Party Insurance policies when one’s vehicle is damaged by another motorist.
He citing benefits from such programmes as it would reduce the penchant of motorists to block the road and fight over minor damages, most motorists have access to radio programmes while on the road, the programmes should target the time most motorists are on the road and the programmes should be beamed to motorists when they are going to work in the morning and when they are returning in the evening.
“Radio programmes should also be directed at the lower end of the money market.
“Studies show that financial literacy is higher among secondary school pupils and the unemployed.
These are areas where radio programmes can be very effective in creating awareness given the wide radio audience in the country.
The poverty in the land and epileptic power supply might inhibit access to television by this segment of the market.
However, a transistor radio powered by dry cell batteries takes the messages to this segment of the market effectively.
Uwah reiterated that newspaper articles and television programmes targeted at enlightened adult population should highlight particular financial services and their benefits for the particular segment of the market.
“The Nigerian consumer needs to know where to run to when in difficulty with any financial service provider. Many consumers lack that information at the moment.
The media can fill the void effectively if adequately mobilized by the operators and regulators of the financial system. 
Uwah in his opinion said ultimately, the CBN, the Pension Commission (PENCOM), NAICOM and the Security and Exchange Commission (SEC), the four regulators of the financial system in Nigeria have the responsibility drive the financial literacy campaign in the media.
He therefore advised the regulators to compel the operators to set aside a fixed percentage of their annual budget for financial literacy and consumer protection enhancement in the media.
