It is has been proven by renowned analysts and scholars that financial inclusion drives economic growth while reducing poverty and income inequality.
For Nigeria, a country that has over 100 million people living below the poverty line, the need to reduce financial exclusion cannot be overemphasized.
The cornerstone of a solid economy is in its financial system and its ability to provide sundry products to customers across board, especially the vulnerable groups of low income earners.
Financial inclusion is the crucial link and substantial first step towards achieving inclusive growth. It includes access to financial products, services like bank accounts, check accounts, immediate credits etc. In short it encourages low income earners to save more.
Without a financially inclusive system, the poor would rely on their limited savings and would have low investment capability. This could be a drag on economic growth.
“Nigeria’s real growth can only be assured if steps are taken to ensure that her social and economic development is all inclusive,” former Central Bank of Nigeria (CBN) Governor and the Emir of Kano Sanusi Lamido Sanusi.
Sanusi opined that economic growth would be achieved at a faster rate, if all segments of the population have access to financial services.
Godwin Emiefele, governor of the CBN opined that financial inclusion is required to enhance incomes, investment and well being at the household level.
“It is also critical for economic growth and financial stability at the macroeconomic level,” said Emefiele. Analysts are of the view that by making it easy for people to open bank accounts, especially entrepreneurs, artisans and farmers in the rural areas, economic activities will be bolstered.
Such moves will also impact positively on lenders assets base as deposits will spike and balance sheet will be strengthened.
Current statistic shows that in the year 2012, a total of 39.2 million adult Nigerians (46.3% of the adult population of 84.7 million) were financially excluded with no access to either formal or informal finances. Further analysis revealed that 54.4% of the excluded population were women, 73.8% were <45 (productive age) 34.0 had no formal education with 84.0% residing in the rural areas. Nigeria has 28.0 million bank accounts with a population of over 168 million and 89.7 million adults (FInA 2012).
The CBN has launched the National Financial Inclusion Strategy on 23 October 2012 with the overall target of reducing the adult financial exclusion rate from 46.3 percent in 2010 to 20 percent by 2020.
