By Uche Usim
The federal government, the World Bank Group, African Central Banks and other regional and global stakeholders have pushed for the immediate bridging of the financial divide affecting over 28 million Nigerians and hundreds of millions across Africa.
That was the thrust of conversations at the two-day 2024 International Financial Inclusion Conference that commenced in Lagos on Tuesday themed, “Inclusive Growth: Harnessing Financial Inclusion for Economic Development,”.
Speaking at the event, Vice President, Kashim Shettima, emphasised the great impact of financial inclusion in driving national growth and prosperity, especially as Nigeria pursues its ambitious goal of becoming a $1 trillion economy.
The Vice President, who was represented at the event by the Deputy Chief of Staff to the President, Office of the Vice President, Ibrahim Hadejia, also announced the launch of key initiatives, including the Women Entrepreneurs Finance Code (We-Fi Code), the Women’s Financial Inclusion Dashboard (WFID) and the Nigeria Financial Services Map.
According to him, each of the initiatives highlights Nigeria’s collective focus on empowering women, bridging the gap for underserved demographics and ensuring that no one is left behind in the pursuit of economic equity.
“Since that first conference in 2022, we have witnessed the de-risking of N950 billion in conventional insurance and N180 billion through the Takaful and Microinsurance sectors.
“Our agent banking initiatives, the rollout of Bank Verification Numbers (BVN) and increased enrolment in the National Identification Number (NIN) programme further attest to our dedication to addressing financial exclusion in Nigeria.
“In the course of these efforts, we have identified critical gaps, especially in the areas of insurance and the limited penetration of digital financial services.
“These challenges, however, also represent significant market opportunities for potential investors. Our pursuit of innovative solutions has driven regulatory advances that enable real-time local and pan-African payment systems, expanding mobile agent networks in rural regions and facilitating access to essential services such as credit and insurance”, the VP stated.
He added that economic and financial inclusion lie at the heart of the current administration’s economic agenda, even as he commended the CBN and the Financial Inclusion Governing Committee for their dedication to advancing inclusive finance.
Also speaking at the event, the CBN Governor, highlighted the wide-reaching benefits of financial access, Cardoso noted that bringing more Nigerians into the formal financial system goes beyond mere banking, as it opens doors to stability, productivity and poverty alleviation.
“Financial inclusion is foundational for economic growth”, he stated.
He explained that access to financial services empowers citizens to save, invest and actively contribute to the economy, setting off a ripple effect that benefits society at large.
Cardoso regretted that, despite years of progress, one in four Nigerian adults remains financially excluded, locked out of opportunities to grow businesses, secure savings and mitigate risks through insurance. This persistent gap, he noted, not only limits personal financial growth but also holds back the broader economy, as millions of Nigerians are unable to access capital or invest in sectors like education, healthcare and housing.
He, however, said relief was on the horizon as the CBN, working with partner institutions, has intensified efforts to close this gap, particularly for underserved demographics, including women, youth, and rural communities. From setting new minimum capital requirements to fortify banks’ capacities to expanding digital financial services that reach remote areas, these initiatives aim to create a financial landscape that truly serves all.
Cardoso emphasised the power of technology in this mission, with mobile banking and agent networks now transforming financial accessibility across the nation.
He said: “In Nigeria, the 2023 EFInA Access to Finance survey reveals that 26% of the adult population remains financially excluded. This statistic highlights a critical challenge: almost one-third of Nigerians cannot access capital to grow businesses, secure savings for the future, or obtain insurance to mitigate risks.
“The absence of these services traps individuals in cycles of poverty and stunts national economic expansion.
“Widespread access to financial services is an enabler of economic activity. Micro, small, and medium enterprises (MSMEs) which are the backbone of Nigeria’s economy can thrive with improved access to credit, creating jobs and boosting productivity. Moreover, as more Nigerians can save, and invest in education, healthcare, and housing, their quality of life improves, fostering broader economic development. Financial inclusion unlocks untapped potential, making it a vital instrument for national progress.
“It is in recognition of this, that the Central Bank of Nigeria (CBN) has been a steadfast advocate for financial inclusion, due to its critical role in achieving macroeconomic stability. Since the launch of the National Financial Inclusion Strategy (NFIS) in 2012, the CBN in collaboration with partner agencies has championed policies and initiatives to reduce financial exclusion.
“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”, he said.
In his remarks, the Deputy Governor CBN in charge of Financial Systems Stability (FSS), Philip Ikeazor, said following Nigeria’s commitment to the MAYA Declaration, the Central Bank of Nigeria alongside key stakeholders launched the National Financial Inclusion Strategy in 2012 to serve as a roadmap towards reducing the country’s adult financial exclusion rate.
He added that 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).
“To address these issues, the CBN has introduced region-specific interventions aimed at reducing exclusion rates in these areas.
Micro, Small and Medium Enterprises (MSMEs) remain the bedrock of the economy and as such Frameworks to ensure that access to finance, especially leveraging on Digital Financial Services, have consistently been pursued to ensure a more inclusive financial ecosystem that supports growth, innovation, and sustainability”, he explained.