The Central Bank of Nigeria on Tuesday, disclosed that despite progress in financial inclusion, over 28 million Nigerians remain excluded from formal financial products and services.
This is despite a significant reduction in the country’s financial exclusion rate, which dropped from 46.3% in 2010 to 26% in 2023.
CBN Governor, Mr. Olayemi Cardoso, made this revelation during his welcome address at the 2024 International Financial Inclusion Conference in Lagos.
The conference, which brought together financial experts, policymakers, and industry stakeholders, was themed ‘Inclusive Growth—Harnessing Financial Inclusion for Economic Development.’
In his speech, Cardoso discussed the CBN’s ongoing efforts to promote financial inclusion across the country.
He explained that the recent recapitalization exercise was a strategic move aimed at empowering banks to take on more risks, particularly in underserved markets.
This initiative is part of the CBN’s broader plan to enhance financial inclusion.
“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,” Cardoso said.
He continued, “With stronger capital bases, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have previously struggled to access formal financial services.”
The governor emphasized that this policy would not only strengthen the stability of the banking system but also catalyze inclusive economic growth. By enabling banks to extend more credit to Micro, Small, and Medium Enterprises, he said the CBN would help foster job creation and improve productivity across various sectors of the economy.
Also speaking at the conference, CBN’s Deputy Governor for Financial Sector Surveillance, Mr. Phillips Ikeazor, addressed the challenges the country still faces in achieving its 95% financial inclusion goal. Ikeazor acknowledged the significant strides made, but also highlighted that financial exclusion remains a critical issue for certain demographics.
“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,” Ikeazor stated.
Despite this reduction, Ikeazor noted that over 28 million Nigerians are still without access to formal financial services, with certain groups facing even greater challenges.
“There are five most excluded demographics—women, youth, rural communities, Northern Nigeria, and Micro, Small, and Medium Enterprises (MSMEs)—that remain disproportionately affected by financial exclusion,” he said.
In response to these persistent challenges, the CBN has implemented a range of targeted programs and initiatives designed to bridge the financial gap.
These include national Financial Inclusion drives, financial and digital literacy campaigns, as well as the release of specific frameworks and guidelines to guide stakeholders in accelerating financial inclusion.
Ikeazor further reiterated that addressing these disparities was crucial to ensuring that the benefits of economic growth reached all segments of society, particularly those that have historically been marginalized in terms of financial access.
