A quarter of Nigerians without bank accounts say mistrust of financial institutions and high service charges are preventing them from joining the formal banking system, according to the World Bank’s Global Findex Database 2025. The report highlights that account opening and maintenance fees, along with transaction costs such as withdrawals, balance checks, and money transfers, remain major barriers to financial inclusion in Nigeria.
The World Bank data shows significant progress in account ownership, with 63% of Nigerian adults holding a financial account in 2024, up from 45% in 2022. However, Nigeria remains among eight countries—including India, Pakistan, Egypt, and Indonesia—where over half of the world’s unbanked population lives. Globally, the percentage of adults without accounts fell from 26% in 2021 to 21% in 2024, yet 1.3 billion people still remain excluded from the formal financial system.
In Nigeria, 25% of unbanked adults cited a lack of trust in banks, often coupled with concerns over fees. The World Bank noted that trust issues may arise from doubts about deposit safety and a lack of transparency in service charges. The report calls for targeted financial education, transparent pricing, stronger consumer protection, and efficient complaint resolution systems to restore public confidence in banking services.
Other factors keeping Nigerians unbanked include lack of funds, reliance on family members’ accounts, and long distances to the nearest bank branch. While mobile money services have boosted financial inclusion across sub-Saharan Africa, Nigeria remains bank-dominated. Barriers to mobile money adoption in Nigeria include insufficient funds, inadequate documentation, limited agent access, and high product costs.
Despite high mobile phone ownership (84%) and increased digital payment usage (54%), formal credit access remains low. In 2024, only 9% of Nigerians borrowed from formal institutions, with most relying on family and friends for loans. The report recommends expanding affordable banking options—especially mobile money accounts—to close Nigeria’s financial inclusion gap and address the trust and cost barriers that keep millions unbanked.
Source: Punch