• Thursday, February 22, 2024
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BusinessDay

Top 15 reasons why some Nigerians don’t have bank account

Number of active bank accounts rises to 151 million — NIBSS

In an era where digital transactions and financial inclusion are rising globally, many Nigerians still find themselves without a bank account.

According to data from the Nigeria Inter-Bank Settlement System (NIBSS), out of Nigeria’s adult population of 160 million, only 60.2 million individuals hold bank accounts as of January 10, 2024.

The difference between the number of Nigerians that are banked and the total adult population is referred to as the access gap that is yet to be closed by financial institutions.

Enhancing Financial Innovation and Access (EFInA), in its recent report on ‘Access to Finance’ said Little/irregular income has become a prominent barrier, surging from 31 percent in 2020 to 49 percent in 2023, indicating a heightened awareness of income-related challenges, while the ongoing relevance of physical access to financial institutions persists.

However, EFinA in its report outlined 15 reasons why some Nigerians are yet to have a bank account, and these include.

1.No money

2. Income not regular

3. Banks are too far from where l live/work

4 No job

5. It costs too much to reach a bank

6. No reason

7. Prefer cash or to keep money in my house

8 Can’t read or write

9. It is expensive to have a bank account

10. Don’t understand how it works/cannot operate it

11. Too much documentation involved/required

12. No identity document

13. Lack of trust

14. Interest earned on deposits is low

15. Charges are too high (e.g.account opening fee)