The Central Bank of Nigeria announced on Tuesday that despite a significant reduction in the country’s financial exclusion rate, from 46.3% in 2010 to 26% in 2023—over 28 million Nigerians still lack access to formal financial services and products.
This underscores the continued challenges in achieving full financial inclusion, even with notable progress in reducing the number of financially excluded individuals.
The apex bank however emphasized that the ongoing recapitalization exercise will enable banks to take on more risks in underserved markets, ultimately boosting financial inclusion across the country.
CBN Governor, Mr. Olayemi Cardoso, disclosed this during his welcome address at the 2024 International Financial Inclusion Conference in Lagos.
The conference, themed “Inclusive Growth—Harnessing Financial Inclusion for Economic Development,” focuses on strategies to use financial inclusion as a tool for broader economic development.
Speaking on the efforts of the apex bank to promote financial inclusion, Cardoso said, “In line with its efforts to deepen financial inclusion, the CBN recently introduced new minimum capital requirements for banks.
“This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets.
“With stronger capital bases, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have previously struggled to access formal financial services.
“This policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity.”
The Deputy Governor, Financial Sector Surveillance, CBN, Mr. Phillips Ikeazor, outlined the challenges impeding the attainment of the 95% financial inclusion goal and proposed strategies to overcome them.
“Since the launch of the Strategy which is currently in its third iteration, the Central Bank of Nigeria and stakeholders have worked tirelessly to reduce financial exclusion rates. Owing to these efforts, the exclusion rate has dropped from 46.3% in 2010 to 26% as of 2023.
“Despite this progress, there are over 28 million Nigerians who still have no access to formal financial products and services and certain challenges persist, particularly in ensuring financial access for five most excluded demographics: women, youth, rural communities, Northern Nigeria and Micro, Small and Medium Enterprises (MSMEs).
“In recognition of these key excluded demographics and in a bid to address these disparities, the Central Bank of Nigeria has rolled out targeted programs and initiatives, including Financial Inclusion drives, financial and digital literacy awareness, sensitization campaigns, and the release of Frameworks and Guidelines targeted at accelerating financial inclusion and guiding players in the space.”
