Exclusion Rate Drops As 69.2m Nigerians Enjoy Financial Inclusion

The latest figure from the Central Bank of Nigeria (CBN) has shown that the total financial inclusion level in Nigeria has grown significantly from 65 per cent to 67 per cent in 2023. The figure translates to a record growth from 68.8 million to 69.2 million number of included persons within the period under review.

However, the number of financially excluded people dropped from 36 per cent or 38.2 million to 32 per cent, representing 33.9 million people.

A breakdown of the figures showed that the number of banked persons has risen from 47.7 million to 54.2 million while another 5.3 million or 5 per cent of the total figure was captured through other formal channels, with 8.6 million (11 per cent) included in the financial service sector through informal methods.

Speaking at a financial literacy fair in commemoration of the 2024 World Savings Day celebration on Wednesday at the headquarters of the central bank, acting head of the consumer protection department at CBN, Ibrahim Yahaya, said savings culture has improved in Nigeria. “Savings have improved significantly. If you look at it from the deposit side, deposit in the banking industry has been on the increase over time,” Yahaya said while acknowledging that there were some events like inflationary pressure that discourage people from saving their incomes.

Most of the number of the financially included population were predominantly young people who are digitally savvy, experiencing a significant rise in urban residency, and a marked boost in entrepreneurial activities.

Yahaya urged Nigerians to embrace savings and make use of formal financial transaction channels for their good and the growth of the national economy despite dwindling income.

“But still, savings is important. Savings should be taken as a habit. If you say you need to have plenty before you say, then you will never do it. But if you take it as a habit, keep something aside, no matter the challenges, you will see the importance tomorrow,” he said as part of continued drive to bring the excluded persons on board.

The world savings day is an international event that is celebrated on October 31 each year. The objective is to promote the importance of savings.

Yahaya said the CBN and other stakeholders in the financial sector were determined to instill a culture of savings among the youth to enable them to make informed financial decisions for their future.