According to the study, 36.4% of Nigeria’s adult population is financially excluded from the economy. As the largest economy in West Africa, Nigeria’s economic exclusion is a major factor in its severe poverty. Beyond the government, the financial sector is also responsible for the exclusion of many Nigerians. In the finance sector, there are banks that discriminate against Nigerians and provide inferior banking services. This is a serious problem, as it restricts Nigerians’ access to financial services and limits their ability to improve their levels of economic inclusion.
Nigeria is facing a serious financial crisis. It is estimated that over 36% of the Nigerian population is financially excluded, struggling to access banking services, whilst many more are underbanked and unable to benefit from financial products and services. At a time in which digital financial services are becoming mainstream and are already playing a crucial role in reducing inequality and improving financial inclusion, there is an acute need for more research into how effective these services are.
When people think of financial exclusion, they often think of the cash-strapped guy that doesn’t have enough money to put food on the table or pay his rent. However, millions of Nigerian adults are excluded from financial services, and with more than half of respondents unable to use a bank account, mobile money or a loan, the country’s financial inclusion is far from where it needs to be.Nearly 36% of Nigeria’s 106 million adults have no access to regulated or unregulated financial services, according to a study by the Enhancing Financial Innovations and Access (EFIA). Although the survey results show that the percentage of financially excluded adults has decreased slightly in recent years, the total number of financially excluded adults has increased from 36.6 million to 38.1 million.
Population growth exceeds financial inclusion
Moreover, according to the study, this number (financially excluded adults) increases to 52.5 million if those who access financial services through so-called informal or unregulated financial services are excluded. In its report, EFIA attributes this discrepancy (between the number of Nigerians without a bank (as a percentage) and the actual number of adults without a bank) to population growth. According to EFIA, the growth of Nigeria’s population is now even greater than that of financial inclusion. On the other hand, compared to previous studies, the latest results show that the percentage of adults formally served in Nigeria has increased for the first time since 2014. Despite this marked decline in the number of adults who do not have a bank, Nigeria still lags behind countries like South Africa and Rwanda, where only 7% of adults do not have a bank. Kenya (11%) has the fewest adults without a bank between November 2020 and February 2021, while Burkina Faso (39%) has the most.
Importance of digital financial services
The study’s findings, which confirm the growing importance of digital financial services in Nigeria, are also of particular interest to advocates of emerging fintech companies. The EFIA study report states: The growth of digital financial services, agent networks and mobile phone ownership (now 81%) provides an opportunity to accelerate the growth of financial inclusion through digital financial services such as mobile money. However, the research report does not provide details on the actual digital financial services or products used by Nigerians. Instead, the report only seems to address the potential impact of increased use of mobile money on financial inclusion goals in Nigeria. What do you think of the latest data on the number of Nigerians without a bank? You can share your thoughts below in the comments section. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.In a recent national survey, financial exclusion was identified as the fourth highest cause of poverty in Nigeria. This is because, although there are many financial services that provide financial services, not everyone has access to them. This is why, as a cryptocurrency enthusiast and a financial inclusion advocate, I decided to shed some light on the topic.. Read more about financial inclusion in nigeria 2021 and let us know what you think.
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