Central Bank of Nigeria [CBN] challenge stakeholders on infrastructure support

How CBN and EFiNA are Driving Financial and Economic Inclusion in Nigeria

The Central Bank of Nigeria (CBN) has called on stakeholders in the economy to invest in infrastructure that will boost financial inclusion in underserved areas such as broadband and digital identification. This was the message of the CBN Governor Olayemi Cardoso at the launch of a new survey report by Enhancing Financial Innovation and Access (EFiNA) a leading financial sector development organization in Nigeria.

The report, titled: “Unlocking Insights to Accelerate Financial and Economic Inclusion”, was unveiled in Lagos on Tuesday December 12, 2023. It revealed the latest trends and challenges in the Nigerian financial landscape, based on data collected from over 20,000 adults across the country.

According to the report, financial inclusion in Nigeria has improved from 56.8% in 2018 to 64.1% in 2023, meaning that more Nigerians now have access to formal or informal financial services. However, the report also highlighted some gaps and barriers that hinder the full potential of financial inclusion to drive economic growth and social welfare.

One of the key findings of the report was that poverty is a major factor for financial exclusion. Nearly half of the adults who do not have any financial account said they have no income, while another 28% said they do not have enough money to save or transact. The report also showed that access to payment services such as mobile money and bank accounts has grown rapidly, but access to other financial products such as credit, savings, pensions, and insurance, remains low.

The report recommended that stakeholders should focus on addressing the demand side and supply side constraints that limit financial inclusion such as low income, low financial literacy, high cost of services, inadequate infrastructure, and regulatory barriers.

Speaking at the event Cardoso, who was represented by Mr. Chibuike Nwaegerue Director Other Financial Institutions Supervision CBN said that the CBN is committed to creating an enabling environment for financial inclusion, through the implementation of the National Financial Inclusion Strategy (NFIS) and other policy initiatives.

He said that the CBN recognizes the importance of infrastructure, such as power, telecommunications, roads, and security, in facilitating the delivery of financial services especially in rural and remote areas. Also, the CBN is collaborating with other stakeholders such as the National Identity Management Commission (NIMC) to ensure that every Nigerian has a unique digital identity that can be used to access financial services.

He urged the stakeholders such as banks, fintechs, telcos, regulators, government agencies, civil society and development partners to work together and come up with innovative solutions that can leverage financial inclusion to achieve the economic goals of the country.

The General Manager of EFiNA Dr. Oluwatomi Eromosele said, the report is aimed at providing evidence-based insights that can inform and guide the actions of the stakeholders in the financial sector and EFiNA is committed to supporting the stakeholders in designing and delivering customer-centric and inclusive financial services that can meet the needs and aspirations of Nigerians.

He also thanked the Bill and Melinda Gates Foundation, the UK Foreign, Commonwealth and Development Office (FCDO) and the CBN for their support and partnership in conducting the survey and producing the report.

The event was attended by over 200 participants from various sectors and organizations who also engaged in panel discussions and breakout sessions on the key themes and recommendations of the report.