Financial Inclusion and Access to Finance in Nigeria

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.

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