Central Bank of Nigeria (CBN), on Thursday unveiled the National Financial Inclusion Strategy (NFIS) designed to ensure that at least 80 percent of Nigerians have access to banking and other financial services.
The newly released National Financial Inclusion Strategy proposes roles and responsibilities for key stakeholders in the financial sector to reduce financial exclusion rate from the present 36.8 percent to 20 percent by 2020.
In 2016, 58.4% of Nigeria’s 96.4 million adults were financially served leaving 41.6% financially excluded. The proportion of those who were banked was 38.3%, those in the formal other category was 10.3% and those served by informal sector 9.8%. This shows that only 48.6% used formal services compared with 70% that is targeted in 2020.
Unveiling the NFIS at the National Financial Literacy Stakeholders’ Conference in Abuja, Aisha Ahmad, CBN deputy governor on Financial System Stability, disclosed that the apex bank had also released new policy frameworks on consumer protection, financial literacy and financial education.
“Adequate consumer protection is critical to sustaining the long term viability of the financial sector because consumer protection is a necessary precursor to building and maintaining trust in the formal financial sector.
“An essential pillar of any consumer protection regime is consumer education, which is founded on financial literacy.
“The benefits of a financially literate population are immense. Consumers are better equipped to make optimal choices in the use of financial products, pose lower credit and default risk.
“In addition constitute a market for sustainable financial services and promote Financial System Stability by increasing market demand and responsible use of financial services,” she said.
Ahmad said the CBN recently introduced regulations and guidelines for the licensing and operations of Payment Service Banks in furtherance of its efforts to leverage technology to enhance access to financial services for the unbanked.
She said the move was expected to drive down exclusion rates by leveraging wider variety of multiple channels to enhance access to deposit products, payments and remittance services to small businesses and low-income households.
Meanwhile, the director, Consumer Protection Department, CBN, Kofo Salam-Alada, harped on the importance of promoting sound financial system in the country to ensure that consumers continue to have confidence in the sector.
“As we seek to boost the number of consumers in the financial industry through the Financial Inclusion Strategy, it is important that we establish policies, structures and programmes that would engender confidence among the general public.
