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Financial Inclusion and Access to Finance in Nigeria

Isibor Areghan (PhD), Ruth Oziohun Emeje (MSC), Onyeka-Iheme Chimeruo Victory (PhD), Ademola R. Adediran

Abstract

Financial inclusion in Nigeria is a significant issue, with over 1 in 3 Nigerian adults financially excluded from formal financial services such as payment, savings, and credit. The Central Bank of Nigeria has set ambitious targets to increase access to financial services: payment services from 21.6% in 2010 to 70% by 2020, savings from 24% to 60%, credit from 2% to 40%, insurance from 1% to 40%, and pensions from 5% to 40%. Financial inclusion aims to ensure that financial services are accessible to all, promoting economic growth and reducing poverty. Affordable financial products and services such as transactions, payments, savings, credit and insurance help people manage risks, build wealth and invest in businesses. Financial inclusion means that individuals and businesses have access to and use affordable financial products and services that meet their needs, which are delivered in a responsible and sustainable way. Financial inclusion is a catalyst for achieving seven of the Sustainable Development Goals (SDGs). It fosters economic growth and employment, promotes economic empowerment of women, and contributes to eliminating poverty.

Keywords

Economic growthFinancial inclusionFinancial servicesSustainable development goals.

References

Demirgüç-Kunt et al, 2021; OECD Policy, 2024; World Bank Global Financial Inclusion and Financial Consumer Protection Survey (2022); G20 High-Level Principles for Digital Financial Inclusion; G20/OECD High-Level Principles on SME Financing; Banco Central do Brazil, 2010; Mehrotra et al (2009); PCC Financial Inclusion Strategy, 2009; Mohan (2006); Stephen Sinclair et al (2009); Chima, 2011; Centre for Financial Inclusion, 2010; Ardic et al, 2011; Beck et al (2007); Sanusi, (2011); Andrianaivo AKpodar, 2011; Chong and Chan (2010); CGAP/World Bank, 2010; HM Treasury (2004); Srinivasan, 2009; Alliance for Financial Inclusion (2010); Zeti (2010); Bank Negara 2010; Pearce (2011)

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