Financial Inclusion Rate Hits Inches 2% Up In 2023

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 study.

However, the number of financially excluded people dropped from 36 percent 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 five per cent of the total figure was captured through other formal channels, with 8.6 million (11 percent) included in the financial service sector through informal methods.

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

Most of the numbers of the financially included population are 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 continues drive to bring the excluded persons on board.

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

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