28 Million Nigerians Lack Access to Financial Services — CBN
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Loading... - Esther Okon
- 13 Nov 2024
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The Central Bank of Nigeria (CBN) has revealed that over 28 million Nigerians still lack access to formal financial products and services, despite a significant reduction in the country’s financial exclusion rate. The rate has decreased from 46.3% in 2010 to 26% in 2023.
During his welcome address at the 2024 International Financial Inclusion Conference in Lagos, themed “Inclusive Growth—Harnessing Financial Inclusion for Economic Development,” CBN Governor Mr. Olayemi Cardoso emphasized the bank's commitment to promoting financial inclusion. He noted that the ongoing recapitalization exercise is designed to empower banks to take on risks in underserved markets, thereby enhancing financial inclusion across the country.
Cardoso stated, “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-capitalized, enabling them to take on greater risks, particularly in underserved markets.” He highlighted that with stronger capital bases, banks would be better positioned to provide loans and financial products to Micro, Small, and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have historically 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,” Cardoso added.
Mr. Phillips Ikeazor, Deputy Governor for Financial Sector Surveillance at the CBN, also addressed the challenges in achieving the ambitious goal of 95% financial inclusion. He acknowledged that while the exclusion rate has improved, over 28 million Nigerians remain without access to formal financial services. He identified the most excluded demographics as women, youth, rural communities, Northern Nigeria, and MSMEs.
To tackle these disparities, the CBN has implemented targeted programs and initiatives aimed at enhancing financial inclusion. These include:
- Financial Inclusion Drives: Campaigns designed to raise awareness and promote access to financial services.
- Financial and Digital Literacy Awareness: Programs aimed at educating the public about financial products and services.
- Sensitization Campaigns: Efforts to inform and engage communities about the importance of financial inclusion.
- Frameworks and Guidelines: Strategic documents released to guide stakeholders in accelerating financial inclusion efforts.
Ikeazor emphasized the importance of continued collaboration among stakeholders to address the challenges and ensure that all Nigerians can access the financial services they need for economic empowerment and development.
The CBN's ongoing efforts to reduce financial exclusion in Nigeria reflect a commitment to fostering inclusive growth and economic development. While significant progress has been made, the challenge remains to ensure that the most vulnerable populations gain access to the financial services necessary for their advancement.
