Kehinde Fajobi
The Central Bank of Nigeria (CBN) disclosed on Tuesday that more than 28 million Nigerians remain without access to formal financial products and services.
This revelation comes despite a drop in the nation’s financial exclusion rate to 26% in 2023, down from 46.3% in 2010.
CBN Governor, Mr. Olayemi Cardoso, shared this during his address at the 2024 International Financial Inclusion Conference in Lagos, themed “Inclusive Growth—Harnessing Financial Inclusion for Economic Development.”
He highlighted the CBN’s recent measures aimed at further reducing financial exclusion, including a recapitalisation exercise for banks intended to support risk-taking in underserved areas.
Cardoso explained, “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, Cardoso said, banks would be better positioned to offer financial products to micro, small, and medium-sized enterprises (MSMEs), rural communities, and other vulnerable groups.
“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,” he added.
CBN Deputy Governor for Financial Sector Surveillance, Mr. Phillips Ikeazor, further addressed the challenges remaining in the path to achieving a 95% financial inclusion rate.
According to Ikeazor, “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.”
However, Ikeazor noted, “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 the five most excluded demographics: women, youth, rural communities, Northern Nigeria, and Micro, Small and Medium Enterprises (MSMEs).”
To address these disparities, he said, the CBN has rolled out targeted initiatives, including financial inclusion drives, digital literacy campaigns, and guidelines to aid organisations involved in the sector.