The largest economy in Africa’s largest country has five top-priority policy options for promoting financial inclusion, according to the International Monetary Fund (IMF).
More financial access points are being added, digital financial services are being promoted, financial literacy is being improved, the framework for fintech operations is being upgraded, and the features and applications of Central Bank Digital Currency (CBDC) are being improved.
Due to its significance in reducing extreme poverty and fostering shared prosperity, financial inclusion has been named as an enabler for seven of the 17 Sustainable Development Goals for 2030. Nigeria’s financial inclusion percentage increased from 63.2 percent in 2018 to 64.1 percent in 2020, according to Enhancing Financial Innovation & Access. The 2020 percentage falls short of the year’s 80 percent financial inclusion target set by the Central Bank of Nigeria.
The IMF also revealed that despite CBN’s huge investments in pushing awareness of digital currency in the public space, its adoption is still low. Following Nigeria’s introduction of the e-Naira in October 2021, several Sub-Saharan African central banks have been exploring the use of digital currencies to enhance their payment systems.