Nigeria’s Financial Inclusion Falls Below 2012 Level - CBN
Nigeria, July, 08 2018 -
The Central Bank of Nigeria has said financial inclusion in the country is now below the 2012 level as it fell to 58.4 per cent in 2016.
The CBN, in a new report, said financial inclusion rose from 53.7 per cent in 2010 to 60.3 per cent in 2012 and 60.5 per cent in 2014.
“Overall, Nigeria has failed to meet its financial inclusion targets due to a variety of factors; a step-change in the pace of progress is needed to close the sizeable gap between the current status and the targets,” it said.
The apex bank noted that in 2010, Nigeria made a commitment to reduce the adult financial exclusion rate in the country from 46.3 per cent to 20 per cent by 2020, and the National Financial Inclusion Strategy was inaugurated on October 23, 2012 in order to attain the target.
The Director, Development Finance Department, CBN, Dr Mudashiru Olaitan, in a circular dated July 6, 2018, said, “While some notable milestones have been achieved, overall financial exclusion rate stands at 41.6 per cent based on the biennial Access to Financial Services in Nigeria Survey.”
He said the CBN had been working with various stakeholders to review the strategy to evaluate progress, identify gaps and develop a refreshed strategy document that would serve as a road map for implementation till 2020.
The apex bank said in the exposure draft of what it called ‘National Financial Inclusion Strategy Refresh’, painted the picture of the country’s drive towards the target.
The document reads in part, “At present, Nigeria lags behind inclusion targets across every measure and is not on track to meet the targets by 2020. However, some recent developments launched since completion of the strategy review may help drive inclusion over the next two years,”
According to the report, in 2016, 58.4 per cent of the nation’s 96.4 million adults were financially served – compared to a target of 69.5 per cent – leaving 41.6 per cent (about 40.9 million adults) financially excluded.
It also showed that only 36.9 million adults were banked while over 59 million were unbanked.
The CBN said, “Performance did not meet expectations across all inclusion targets for products, channels and enablers. Among product categories, credit, insurance and pension fell short of targets by the most significant margins. Point of Sale terminals and Automated Teller Machines showed the least progress among channels.”