On BU$I₦£$$ DIG£$T this morning, November 12, 2021
ANOTHER LOOK AT FINANCIAL INCLUSION IN NIGERIA
What is Financial Inclusion?
Financial inclusion simply put, means bringing those who are currently not enjoying financial services such as savings, credit, payment, pensions, insurance, remittances amongst others into the financial system and by so doing, access and use such services for economic/other activities that better their lots.
According to the Former Director of Banking and Payment System, Central Bank of Nigeria (CBN) Dipo Fatokun, financial inclusion is access to financial services that are available to the adult population in any given economy. Such financial services include payment, insurance, pension, etc
Recently the CBN set this penetration achievement at 95% by 2024, meaning 95% of Nigeria’s Bankable Population should enjoy financial services.
Recently also, it was stated that there are only 48million BVNs making it only 54% of the Nigeria’s bankable population. There is still alot to be done.
Deposit Money Banks alone cannot achieve financial inclusion and the CBN knows fully well because of the cost implications in establishing brick and mortar banking locations especially in rural areas.
The Micro Finance Banks with the DMBs together too cannot achieve this target as well.
This is what necessitated the licensing of Mobile Money Operators(MMOs), this still fell short of the expectation.
As at today statistics has it that there are one mobile money operator (MMO) to 350 Nigerians, at ratio 1:350, it is still inadequate to achieve financial inclusion.
In exercise of its powers as enshrined in Banks and Other Financial Institutions Acts(BOFIA-2020), the CBN has granted provisional licences to two leading telco operators; MTN and Airtel to run a PSB: Payment Service Banks.
This is so because it is on records that there are over 80million mobile phone subscribers, as against a population of 211.5million Nigerians according to UNFPA statistics as at April 2021 and the population keeps growing.
Broadband penetration is a major consideration for this slow-paced achievement. But with new licences and FinTech operators in the space, this penetration will experience a considerable rise in percentage when appraised by December 31, 2022
_If you learnt anything from this, kindly share with someone out there._
_*Dr. Emmanuel Idenyi Shaibu*_
_animn, ace, f.hcd, f.dss, m.frcn, fimc, cmc, cms, FAiPA, DPA, ACCrFE_
The Millennium Entrepreneur!