Financial inclusion in nigeria financial inclusion insights. Nigeria the financial inclusion insights fii program responds to the need identified by multiple stakeholders for timely demandside data and practical insights into digital financial services dfs, including mobile money, and the potential for their expanded use among the poor. The central bank of nigeria and other stakeholders intend to implement a national financial inclusion strategy to decrease the number of nigerians that are excluded from financial services from 46. Efforts by monetary authorities at improving financial inclusion in nigeria should focus on the variables in this index. As africas largest economy, nigeria has the potential to drive consumers toward financial inclusion, yet internal strife and economic instability have made progress uncertain. The prevalence of existing citizen identification documents and tiered knowyourcustomer.
With the increasing number of microfinance banks in nigeria and the mounting drive for inclusive financial systems, therefore, it would be worthwhile to assess the impact of microfinance on financial inclusion in the country. Full financial inclusion is a state in which all people who can use them have access to a suite of quality financial services, provided at affordable prices, in a convenient manner, and with dignity for the clients. The digital financial services landscape in nigeria. Regulatory impact on mobile money and financial inclusion. And the world bank group in october 20 postulated the global goal of universal access to basic transaction services as an important milestone toward full financial inclusiona world where everyone has access and can use the financial. Nigerias financial inclusion landscape includes both great hope and great challenges. Issues and challenges abstract financial inclusion is a state where financial services are delivered by a range of providers, mostly the private sector, to reach everyone who could use them. In nigeria and mexico, after a jump in financial inclusion between 2011 and 2014, the numbers have decreased. D department of management and accounting, faculty of management sciences ladoke akintola university of technology, ogbomoso,nigeria. Financial inclusion, poverty, and income inequality in. Although, olaniyi and adeoye 21 examined the determinants of financial inclusion in africa for the period of 2005 to 2014, but a country specific study need to be undertaken for nigeria. The predominant use of cash creates several major challenges for. Pdf financial inclusion has been closely linked to economic growth. This paper introduces a new index of financial inclusion for 151 economies using.
Status of financial inclusion in uganda dfs observatory. All books are in clear copy here, and all files are secure so dont worry about it. In the absence of relevant data, financial inclusion becomes impossible to expand into the areas where it is needed most. Nigeria confronts a challenging financial inclusion gender gap efina data provide a similar picture of gender differences, albeit with a smaller gender gap in 2014 than the gap revealed by the findex data.
The results of this work show that low levels of financial inclusion are associated with lower levels of financial literacy. Recent research combining a broad stock take of infe members and additional desk. Defining financial inclusion in order for afi members to reap the most benefit from the fis plg framework for national financial inclusion strategies, it is important that they strive to develop a clear and concise definition of what financial inclusion means in their particular national context, and then compare it with definitions other. Researchdocuments20documentsefinaaccesstofinancial. The study identified the index for measuring financial inclusion in nigeria using the principal component analysis pca.
This study therefore fills this gap by examining the determinants of financial inclusion in nigeria from 1990 to 2016. Bridging the financial inclusion gender gap in smallholder. In 2010, under the trust fund, the oecdinfe launched a project on the role of financial education in financial inclusion. Lessons from latin america and caribbean maria luisa hayem, andrea reyes, ana maria torres. First, it provides a brief overview of the african financial sector landscape. Encouraged by the positive development, the central bank of nigeria in collaboration with stakeholders launched the national financial inclusion strategy on 23rd october, 2012 aimed at further reducing the exclusion rate to 20% by 2020. Six in ten nigerians 60% live below the poverty line, with research showing. The wbg, as an implementing partner for the subgroup on regulation and standardsetting bodies, took leadership on this paper, with involvement from subgroup members including cgap consultative group to assist the poor, dfid department of international development. Nigeria, have been forced to develop and maintain their own id systems, a more costly. Second, it uses the global financial inclusion indicators global findex database to characterize adults in africa that use formal and informal financial services and identify the barriers to formal account ownership. In nigeria, where the national financial inclusion strategy, first launched in 2012, is now being revised, policymakers are working to increase access for women and rural communities, especially in the north. Inclusive financial arrangement is becoming a policy issue in both developed. Nigeria financial inclusion insights survey technical. It helps in the overall economic development of the underprivileged population.
Financial inclusion individuals who hold an account with an institution that provides a full suite of financial services and comes under some form of government regulation. Introduction the growing importance of financial inclusion, especially in developing economies, is perhaps underscored. Specifically, it means a financial system that serves as many people as possible in a country. Among citizens in the lowest income households representing the bottom 40% of the nations income range, only 2. The same gender gap in the countrys smallholder agriculture frustrates the multifunctional potentials of agriculture. Strengthening the financial sector involves building institutions critical to financial inclusion and addressing market barriers across product categories to grow formal intermediation. Pdf financial inclusion and nigerian economy 1990 2015. Financial literacy basic knowledge of four fundamental concepts in financial decisionmaking interest rates, interest compounding. Financial inclusion in africa african development bank.
The role of data in supporting financial inclusion policy bis. Financial inclusion, poverty, and income inequality in developing asia the authors present a broadbased financial inclusion indicator to assess various macroeconomic and countryspecific factors affecting the degree of financial inclusion for 37 selected developing asian economies. Strategies for womens financial inclusion in het c. The little data book on financial inclusion 2018 is a pocket edition of the global findex database published in 2018. This paper investigated the impact of fi on economic growth in nigeria. National financial inclusion strategy revised financial inclusion in nigeria. Using nigeria as a case study, this article is to highlight the critical areas that could facilitate the increase in financial inclusion to all stakeholders and to present the importance and the implications of promoting financial inclusion for monetary policy and financial stability in terms of regulation of banking industry and payment systems. Effects of financial inclusion on the economic growth of nigeria 19822012 onaolapo a. Using all available information, this maiden report on the status of financial inclusion in uganda attempts to provide a broad view of the current state of financial inclusion by utilizing measures from both the demand and supply side of financial services and products. The successful transition of these asian tigers from independence to industrialisation and from lowincome to highincome countries has made them a development model for many other developing nations. The transformative role of technology issa faye and thouraya triki dfis support to financial inclusion in africa isabella massa the tradeoff between financial inclusion and financial stability pietro calice financial inclusion. Download nigeria confronts a challenging financial inclusion gender gap book pdf free download link or read online here in pdf.
Project muse the impact of microfinance on financial. Researchdocuments20documentsefinaaccessto financial. Specifically, adult nigerians with access to payment services is to increase from 21. It highlights differences among the 4 countries and their financial regulatory environment. Financial inclusion hlps, produced by the g20s global partnership for financial inclusion gpfi,2 aimed to catalyze government actions to drive financial inclusion through a focus on digital technologies, and to provide a basis for country action plans and initiatives. This study identifies income, education, age, gender, urbanrural. Nartey, phd assistant professor sonoco international business department darla moore school of business 1014 greene street columbia, sc 29208 lite. Implementation of financial inclusion strategy in nigeria sdmimd. Download the little data book on financial inclusion. Role of banks in financial inclusion in india sciencedirect. Nigeria home financial inclusion insights by intermedia. Pdf financial inclusion entails access of the populace to financial services.
The sustainable development of nigeria is being challenged by a persistent large financial inclusion gender gap figg. Financial inclusion fi in nigeria is growing but still lags far behind the principal target set in the national financial inclusion strategy, 2012 of the central bank of nigeria cbn. Financial inclusion efforts should offer at a minimum, access to a range of financial services including savings, long and short term credit. In 2012, nigeria introduced the national financial inclusion strategy nfis and promoted it as a key driver in becoming one of the worlds largest economies the goal of nfis is to decrease the number of nigerians without access to financial services from 46. Pdf this paper examined the effects of financial inclusion on the nigerian economy 19902015. This question is of significant policy relevance, as nigeria recently launched a financial inclusion programme as a strategy for wealth creation and poverty. The prevalence of existing citizen identification documents and tiered knowyour customer. This financial inclusion insights fii survey is the fifth in a series of surveys intermedia uses to track the role dfs play in. The role of financial education in financial inclusion. Financial services are delivered by a range of providers, most of them private, and reach everyone who.
Abstract onerous kyc documentation requirements are widely recognized as a potential constraint to full financial inclusion. Empirical analysis of the determinants of financial. And the world bank group in october 20 postulated the global goal of universal access to basic transaction services as an important milestone toward full financial inclusion a world where everyone has access and can use the financial. How to promote financial inclusion in nigeria world. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Financial inclusion is an important step towards inclusive growth. Financial regulatory issues for financial inclusion. This study contributes to existing literature on financial inclusion. However, it is sometimes difficult to judge the extent to which this constraint is a. New measurement and crosscountry impact assessment financial inclusionone of the pillars of the global development agendaaids inclusive growth and economic development.
Contents i acknowledgments iv executive summary v 1. Nigerias financial exclusion rate has reduced from 52. Central bank of nigeria national financial inclusion. Pdf the drivers of financial inclusion in nigeria researchgate. Pdf effectiveness of financial inclusion strategy in nigeria. Having a current account savings account on its own, is not regarded as an accurate indicator of financial inclusion. Efina advocates policies to drive financial inclusion in nigeria efina advocates policies to drive financial inclusion. Going forward, cgap will support the global development sector, policy makers, and the impact investing industry by facilitating a common understanding of emerging business models in fintech that have the potential to advance financial inclusion. Intermedia conducted a nationally representative survey in nigeria to explore the uptake and usage of digital financial services dfs among the adult population ages 15 and over. The data represent a third round of data collection since the global findex database was launched in 2011. This is particularly relevant in ssa, where mobile money has so far been the main driver. Global partnership for financial inclusion gpfi and g20 countries.
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