Adult population, the Central Bank of Nigeria (CBN) has acknowledged the strides made in advancing financial inclusion within the country. Despite this progress, the CBN has highlighted persistent disparities, particularly among certain demographics and regions. Women, youth, micro, small, and medium enterprises (MSMEs), as well as rural communities in the Northern regions, continue to face disproportionate exclusion from the financial landscape.
Governor Olayemi Cardoso conveyed this message during the launch of the Enhancing Financial Innovation and Access (EFInA) 2023 Access to Financial Services (A2F) Survey in Lagos. Represented by Chibuike Nwagerue, the Director of the Other Financial Institutions Supervision Department, Cardoso underscored the collaborative efforts of stakeholders to address these gaps. He noted that the National Financial Inclusion Strategy, having undergone revision, has set an ambitious 95% inclusion goal for the upcoming year. The strategy places a strong emphasis on increasing the adoption and usage of financial services within priority demographics of some adult population.
The assurance from the CBN comes on the heels of positive developments, with the financially included adult population rising from 56% in 2020 to 64% in the current year, as per EFInA’s latest survey. Cardoso affirmed that the renewed efforts aim to ensure a robust enabling financial services infrastructure and services. This includes expanding digital financial services (DFS) and improving coordination, capacity, and governance related to financial inclusion.
Cardoso highlighted the significant strides made in recent years by financial inclusion stakeholders. Their efforts have been focused on expanding access to financial services through the rapid deployment of agents and the development of tailored products suitable for the financially excluded demographics. As part of these efforts, the CBN introduced guidelines linking Tier 1 accounts to the Bank Verification Number (BVN) and the National Identification Number (NIN). This move is intended to enhance the safety of the banking space for financially excluded individuals and contribute to the overall stability of the economy, adult population.
Delving into the survey findings, Cardoso emphasized the need to shift attention to the financial health of adults, especially in the context of global economic shocks. He noted that stakeholders in the insurance, pension, and capital market sectors have developed relevant policies to address economic shocks in the MSME sector. Inclusive financial systems, he argued, play a crucial role in protecting vulnerable individuals and communities from the impacts of global uncertainties. They do so by providing access to essential financial services such as savings and emergency funds, facilitating digital payments and transfers, and offering pathways to access credit, microloans, and social safety disbursements during times of crisis, adult population.
The evolution of the Nigerian financial system was a key point of emphasis for Cardoso. He highlighted significant improvements in size and depth, particularly in market development, products, instruments, and payment infrastructure. This evolution necessitates a continuous effort from regulators and stakeholders to keep pace with emerging developments in a sustainable manner, adult population.
Financial inclusion, according to Cardoso, is not only a key developmental objective but also a global initiative recognized by numerous countries worldwide. Over 68 countries have developed and are actively implementing National Financial Inclusion Strategies. The CBN boss commended EFInA for its longstanding support in this regard, particularly in accurately measuring progress through the provision of timely data of adult population.
The efforts of EFInA, spanning back to 2008, have served as a crucial source of demand-side data. This data has challenged the financial ecosystem to create products and develop evidence-based policies. Cardoso acknowledged that EFInA’s A2F survey has provided credible data for measuring and promoting financial inclusion in Nigeria. This data serves as a benchmark for regulators and various stakeholders, aiding in tracking and advancing financial inclusion in the country.
Conclusion: Adult population
Cardoso stressed that an inclusive financial system, allowing broad access to formal financial services, is essential for the effective transmission of monetary policy and the attainment of the CBN’s objectives. Financial inclusion, he argued, can also significantly contribute to the health, stability, and soundness of the financial system. Growing evidence, according to Cardoso, reveals substantial benefits for consumers, particularly women, youth, farmers, traders, and poor adults. Studies have shown a direct correlation between an inclusive economy and reduced income inequality, reinforcing the importance of the ongoing efforts to promote financial inclusion in Nigeria, as reported by gaurdian.ng
