The latest Access to Finance (A2F) report by the Enhancing Financial Innovation and Access (EFInA) has revealed that nearly 50% of adult Nigerians are financially excluded due to poverty.
According to the report, this was despite the growth recorded in formal financial inclusion in the country in 2023.
EFInA disclosed that formal financial inclusion grew from 56% in 2020 to 64% in 2023. While describing this as good progress, it noted that approximately 40 million adult Nigerians remain formally excluded
The report commended the Central Bank of Nigeria for encouraging competition in the market and enabling a non-bank-led approach, which is driving the growth in formal inclusion. It, however, noted that the formal access to 64% is only the beginning.
While noting that poverty is a major reason many Nigerians are financially excluded, EFInA said the government would need to formulate policies addressing poverty to drive financial inclusion.
The EFInA survey further revealed that one-third of adults in Nigeria have low financial capability and find it difficult to meet their financial needs. It added that high liquidity distress and shocks such as health, economy, and climate, are ultimately impacting the financial well-being of many Nigerians.
Since 2008, the A2F survey has provided data on financial inclusion. The survey is currently funded by the Bill & Melinda Gates Foundation following previous funding from the UK Foreign Commonwealth Development Office
The survey answers questions about how adult Nigerians manage their money, make and receive payments, save, borrow, and manage financial risks. It also provides metrics on women, rural and Northern populations, and low-income households.
It tracks progress toward improving financial inclusion and achieving the National Financial Inclusion Targets and supports programming design for wider development objectives – health, agriculture, women’s economic empowerment etc.