Stakeholders Identify Gaps To Financial Inclusion Target

Experts in the nation’s financial sector have identified gaps in the set objectives of the Central Bank of Nigeria (CBN), to significantly reduce the number and percentage of adult Nigerians who are excluded from the formal Financial System of the country.

Speaking at the inaugural conference of Oriental News Nigeria with the theme: ‘Engaging with critical groups to develop effective financial inclusion initiative,’ which held at the weekend in Ikeja, Lagos, the chief executive of Bank Customers Association of Nigeria (BCAN), Dr Uju Ogubunka, stated that, the financial inclusion policy of the federal government, which commenced in 2012, is geared towards ensuring that no Nigerian is short changed in its financial intermediations policies and economic development plans.

Ogubunka said: “the adult population has now increased above 84 million and the un banked population  has also increased remarkably. If the people are outside the financial  system, the economy will not develop.”

He explained that financial inclusion commences with opening bank account, which factors in the account holder, towards benefiting from all forms of government’s  financial support as the account drives all other transactions of the account holder.

Also, to have insurance policy, investment accounts in the capital market, pension account and all forms of life and business enabling transactions driven only by the nation’s  financial system, you need to be financially included, he stressed.

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“As some of us will remember, the CBN initiated the National Financial Inclusion Programme in year 2012 that is, about a decade ago. The Programme is kind of a response to the discovery from a study in 2010 that about 39.2 million or 46.3 per cent of the then 84.7 million adult population in the country were excluded from the formal Nigerian Financial System.

“That meant that 45.5 million or 53.7 of the 84.7 million were included in the system. It was also noted that of the excluded 39.2 million adult Nigerians, about 21.3 million or 54.4 per cent were females; meaning that about 17.9 million (i.e. 45.6 per cent) were males. So, females accounted for a higher number and percentage of the excluded than males. On the other hand, males accounted for a higher number and percentage of those included in the Nigerian Financial System.” he stated.

Ogubunka, pointed out that, the above situations were identified to have negative/adverse consequences and implications for the financial system and the economy, especially, as almost half of the financial resources in the country were in the hands of people operating outside the formal financial system.

The guest speaker and managing director, APT Securities and Funds Limited, Mallam Garba Kurfi,  buttressed that, financial inclusion policy of the government helps to ensures that funds that could have been deployed for entrepreneurial initiatives don’t end up in cupboards at homes.

Mallam Kurfi, who was represented by the managing director/CEO, Arms Securities Limited, Mr Rotimi Edu, in his presentation, said, the government was recording remarkable progress in the financial inclusion target, adding that, more hands are on deck to ensure that economic advantage of the country’s  large population translates to financial benefits to the people and institutions.

The government, he stated has designed  financial support initiatives for rural women, artisans, petty traders, the financially disadvantaged, which can only be extended to only people who operates bank accounts.

He said that funds are aggregated through savings in banks, investments in capital market or taking  policies in insurance companies, such funds are further deployed to catalize economic development through lending or for institutional growth.