CBN’s Financial Inclusion Drive: Bridging Nigeria’s Economic Divide?
By Nasir Dambatta
For years, critics have lamented the Central Bank of Nigeria’s (CBN) sluggish progress on financial inclusion, arguing that the institution’s policies have often failed to effectively penetrate Nigeria’s sprawling informal economy. The latest revelation at the 2024 International Financial Inclusion Conference in Lagos underscores the challenge: 28 million Nigerians remain unbanked, with millions more grappling with limited access to vital financial services.
The implications of this exclusion are profound, as it not only perpetuates poverty but also hampers economic growth and limits opportunities for upward mobility. The unbanked population, mostly concentrated in rural and underserved regions, remains trapped in financial insecurity. Without access to formal financial services such as savings, credit, insurance, and digital payment systems, millions of Nigerians are excluded from the economic mainstream, effectively stalling their ability to participate fully in economic activities.
However, CBN Governor Olayemi Cardoso, addressing the Lagos conference, reiterated the urgency of advancing financial inclusion to secure broader economic stability and growth. According to the Access to Finance (A2F) survey conducted by Enhancing Financial Innovation and Access (EFInA), 26% of Nigeria’s adult population remains excluded from financial services.
“Financial inclusion is critical for poverty reduction, income equality, employment generation, and overall productivity,” Cardoso emphasized, linking the drive to the government’s broader economic goals.
The CBN’s National Financial Inclusion Strategy (NFIS), introduced in 2012, has made significant strides by reducing exclusion rates from 46.3% in 2010 to 26% in 2023. However, this progress has been uneven, with barriers such as limited infrastructure, low digital literacy, and inadequate awareness of financial products persisting in hard-to-reach areas. Recognizing these challenges, the CBN has revised capital requirements for Nigerian banks, a move aimed at empowering them to provide more robust support to underserved communities.
Technology has become a powerful enabler in this mission. Mobile banking and digital payment systems have successfully brought financial services closer to previously excluded populations. These innovations are especially vital in rural areas, where traditional banking infrastructure is often lacking. By leveraging these tools, the CBN hopes to create a more inclusive financial ecosystem, fostering entrepreneurship and empowering small businesses to thrive.
Achieving the ambitious target of 95% financial inclusion by 2030, however, requires more than just technology. The CBN is urging stakeholders—including government agencies, financial institutions, non-governmental organizations, and the private sector—to collaborate and address systemic barriers. Coordinated efforts can help dismantle obstacles such as limited trust in financial institutions, cultural resistance to formal banking, and regulatory bottlenecks.
Moreover, the CBN’s emphasis on public education is pivotal. Increasing awareness about the benefits of financial inclusion and equipping Nigerians with the skills to use digital financial services effectively are essential steps. Financial literacy campaigns and community outreach programs are already underway to bridge these gaps, but scaling them up will be key to sustained progress.
As Nigeria strives to transition to a more inclusive economy, the stakes are high. Financial inclusion is not just about numbers; it is about transforming lives, empowering communities, and creating a resilient economic system. For the millions of unbanked Nigerians, inclusion represents a lifeline—an opportunity to access tools that can lift them out of poverty and into prosperity.
While critics remain vocal about the slow pace of change, the CBN’s renewed commitment to bridging the financial divide signals hope for a more equitable future. By addressing the root causes of exclusion and fostering partnerships across all sectors, Nigeria can unlock the immense potential of its people, driving sustainable development and economic growth for decades to come.
Dambatta, a veteran journalist, wrote from Kaduna
GNN24 News 