Nigeria has made progress in achieving its 2024 financial inclusion target, with 74% of the population considered financially included in 2023, up from 68% in 2020. However, 26% of Nigerians remain financially excluded, and certain demographic gaps persist, including gender, urban-rural, and regional disparities. The 2022 National Financial Inclusion Strategy aims to reduce financial exclusion to 25% by 2024. The Central Bank of Nigeria (CBN) emphasizes the need for concrete commitment to achieving the 95% financial inclusion target in the long term.
Key Points:
- Financial inclusion in Nigeria increased to 74% in 2023, up from 68% in 2020, as reported in the 2023 EFInA Access to Finance (A2F) Survey.
- Despite the overall progress, 26% of Nigerians remain financially excluded, indicating work is needed to achieve the 2024 target of reducing financial exclusion to 25%.
- Persistent demographic gaps include gender, with women’s financial inclusion growing from 60% in 2020 to 70% in 2023, but the gender gap increased from 8% to 9%.
- Urban-rural gap decreased from 24% in 2020 to 20% in 2023. Financial inclusion among youth (18-35) reached 71% in 2023.
- Northern Nigeria, despite progress, still reports exclusion levels above the national average.
- The Central Bank of Nigeria (CBN) calls for specific functions or units dedicated to financial inclusion in relevant organizations to enhance commitment.
Analysis: The progress made in Nigeria’s financial inclusion, with a 74% inclusion rate in 2023, reflects ongoing efforts to extend access to financial services across the country. The National Financial Inclusion Strategy’s goal to reduce financial exclusion to 25% by 2024 underscores the importance of these initiatives in fostering economic participation and resilience.
While advancements are evident, challenges persist, particularly in addressing demographic disparities. The gender gap, though showing improvement, emphasizes the need for targeted measures to enhance women’s financial inclusion. Urban-rural gaps are narrowing, but regional variations, especially in Northern Nigeria, highlight the need for tailored strategies to address specific challenges in different areas.
The emphasis on digital inclusion is notable, with mobile phone usage reaching 93% in 2023, involving 103 million individuals. However, the survey also points out a decrease in smartphone usage, suggesting a nuanced landscape that requires attention to specific technology access issues.
The CBN’s call for specific functions or units dedicated to financial inclusion demonstrates the recognition of the importance of institutional commitment. Effective coordination and collaboration among stakeholders, including financial institutions, regulators, and implementing agencies, are crucial for sustained progress.
As Nigeria works toward achieving its financial inclusion targets, analyzing survey data and engaging stakeholders will contribute to refining strategies. Tailoring interventions to address persistent gaps, digital literacy, and regional nuances will be instrumental in ensuring that financial inclusion benefits all segments of the population.