10th U6+ Consortium of African Universities International Conference

Millions of people in Northern Nigeria rely on the informal sector as their major source of income, but because they are routinely shut out of official credit and insurance markets, these workers are disproportionately vulnerable to financial shock. This study explores how behavioral finance and inclusive fintech may work together to help this group become more financially resilient. Although access to digital financial services (DFS) has increased, empirical data indicates that having an account does not guarantee financial well-being. We examine how cognitive biases like present bias and loss aversion affect informal workers' borrowing and saving habits using behavioral economics. We contend that fintech platforms can reduce these behavioral hurdles and promote consistent microsavings and risk mitigation behavior when they are built with nudges and a simpler user interface. However, these approaches must overcome particular sociocultural barriers in Northern Nigeria, such as a sizable gendered digital divide and poor institutional trust. This study, which synthesizes data from global benchmarking and Access to Financial Services (A2F) surveys, finds that the path to resilience necessitates a change towards meaningful inclusion rather than just technology adoption. This entails enhancing consumer protection, growing networks of offline skilled agents, and customizing products to the unique cash flow needs of microbusinesses. In order to convert passive financial access into active, resilient economic involvement, we offer a framework in which fintech designs are matched with the behavioral requirements of the unorganized sector. This study contributes to the discourse on development finance by providing a roadmap for policy makers to leverage digital innovation in addressing the structural irregularities that persist in the Norther Nigeria’s financial landscape