Download the little data book on financial inclusion. National financial inclusion strategy nfis to reduce adult financial exclusion rate in nigeria, from 46. International remittances and financial inclusion in sub. Lessons from latin america and caribbean maria luisa hayem, andrea reyes, ana maria torres. The dependent variable of financial inclusion proxied by contribution of financial institutions to gross domestic product gdp was regressed on the explanatory. In a circular, central bank of nigeria cbn lamented that we are not meeting any of the financial inclusion targets agreed and contained in the 2012 financial inclusion strategy. This financial inclusion insights fii survey is the fifth in a series of surveys intermedia uses to track the role dfs play in money transfers, payments, and savings among various consumer segments. The central bank of nigeria development finance initiatives involve the formulation and implementation of various policies, innovation of appropriate products and creation of enabling environment for financial institutions to deliver services in an effective, efficient and sustainable manner.
Jul 25, 2014 he further said that, the determinants of financial inclusion in nigeria are young and growing population of approximately 170m people. Mar 28, 2017 the global pursuit of financial inclusion as a vehicle for economic development had a positive effect in nigeria as the exclusion rate reduced from 53 per cent in 2008 to 46. The strategy articulated the demandside, supplyside and regulatory barriers to. Generally, there is a believe that once it works anywhere else including kenya, it can work in nigeria. The impact of financial inclusion on monetary policy in nigeria. The little data book on financial inclusion 2018 is a pocket edition of the global findex database published in 2018. Efforts by monetary authorities at improving financial inclusion in nigeria should focus on the variables in this index. More than anything else, i was curious to know how nigeria fared in comparison to other developing countries. Financial inclusion, the development of novel methods to enable individuals at the base of the pyramid to access formal financial services and. The study examined the effects of financial inclusion on economic growth in nigeria from 2000 to.
The level of urbanization as a % of total population. The goal of nfis is to decrease the number of nigerians without access to financial services from 46. Efina advocates policies to drive financial inclusion in nigeria. This study, using annual data over the period 19812014 and the ardl bounds testing approach, captures the long run as well as the shortrun dynamics of the relationship between financial inclusion and agriculture in nigeria. In 2016, the national association of microfinance banks namb began issuing its version. Although gradual progress is being made to improve on financial inclusion, critical challenges of low financial literacy, inadequate infrastructural facilities as well as inadequate and inefficient technologybased facilities by financial institutions, has limited the achievement of significant expansion in financial inclusion level in nigeria. Onou department of accounting, auchi polytechnic, auchi, nigeria abstract. Present new information on the youth market for financial services in three african countries discuss the implications of the new information for how fsps serve the youth market identify concrete action steps that participants in the webinar can take to improve the provision of financial services to the youth market. In 2012, nigeria introduced the national financial inclusion strategy and promoted it as a key driver in becoming one of the worlds largest economies. Ajisafes study was preoccupied with the monetary factors that could cause inflation, at the expense of fiscal factors. Effects of financial inclusion on economic growth in. In 2012, nigeria introduced the national financial inclusion strategy nfis and promoted it as a key driver in becoming one of the worlds largest economies. A large number of adults in developing countries lack access to formal financial services but there are many things that are required to reduce the number across nations.
Financial inclusion fi, a feature of fi nancial development, is a process that marks improvement in quantity, quality, and effi ciency of fi nancial intermediary services. Opportunities and challenges for youth financial inclusion. Financial inclusion assures easy access to financial services by enabling the disadvantaged and vulnerable sections of the society to actively contribute to development and protect themselves against socioeconomic shocks. According to the national financial inclusion strategy,5 17. I am a strong believer of financial inclusion and therefore, this report got me hooked from the word go.
Financial inclusion in nigeria financial inclusion insights. But fiscal factors cannot be ignored in a country like nigeria where deficit spending has become a more or less permanent feature of the budgetary process folorunso and abiola, 2000 12. With the increasing number of microfinance banks in nigeria and the mounting drive for inclusive financial systems, therefore, it would be worthwhile to assess the impact of microfinance on financial inclusion in the country. This paper investigated the impact of fi on economic growth in nigeria.
A number of smallscale sample surveys on nfis administered at some of the fisplg meetings have enriched this data to some extent. Going forward, cgap will support the global development sector, policy makers, and the impact investing industry by facilitating a common understanding of emerging business models in fintech that have the potential to advance financial inclusion. The digital financial services landscape in nigeria. Agricultural output growth the agricultural sector of nigeria s economy has the critical role of broadening the productive and export base. Challenges to the success of financial inclusion in nigeria there are several challenges identified that have created the gap and pose as unsurmountable mountain to financial inclusion in nigeria. Potential impact of financial inclusion on economic growth in. More so, financial inclusion agenda should be considered and adopted in a concerted manner. Various policies targeted at financial inclusion has so far not had the desired impact on the real sector of the nigerian econ omy due to lack of access to finance. Financial inclusion in nigeria many nigerians, for numerous reasons are unbanked and lack access to formal financial services many nigerians, for numerous reasons are unbanked and lack access to formal financial services. Not only are we not meeting the targets, we are even retrogressing. April 15, 2019, washington, dc representatives of finca microfinance bank limited in nigeria finca nigeria and of the nigerian government held talks to advance financial inclusion and economic development in the country. Financial inclusion is achieved when adults have easy access to a broad range of formal. Regulating fintech in nigeria and financial inclusion. Effects of cashless economy policy on financial inclusion in nigeria.
All books are in clear copy here, and all files are secure so dont worry about it. This paper examines the effects of financial inclusion on the economic growth of nigeria 19822012. It also shows that while more than 700 million people gained access to formal financial services between 2011 and 2014, the gender gap in financial inclusion remains a stark reality with. Data for the study are collected mainly from secondary sources such as statistical bulletins of the central bank of nigeria c. The cbn national financial inclusion strategy also lends credence to the dearth of regulations for fintechs in nigeria. As governments and standardsetting bodies started prioritizing financial access, financial inclusion topics have become prevalent in fsaps, which are assessments the world bank and the imf developed to help strengthen countries overall financial systems and cover a range financial sector issues. The transformative role of technology issa faye and thouraya triki dfis support to financial inclusion in africa isabella massa the tradeoff between financial inclusion and financial stability pietro calice financial inclusion. Innovation in financial inclusion 2 executive summary traditionally, banks operating in emerging markets ems have not viewed financially excluded individuals, and micro, small and medium enterprises msmes as profitable target customer segments. Project muse the impact of microfinance on financial. The central bank of nigeria and other stakeholders intend to implement a national financial. National financial inclusion strategy microfinance gateway. Findings from the fii tracker survey in nigeria and consumer focus groups. Financial inclusion is the provision of a broad range of high quality financial products such as savings, credit, insurance, payments and pension, which are affordable for the entire adult.
Issues and challenges abstract financial inclusion is a state where financial services are delivered by a range of providers, mostly the private sector, to reach everyone who could use them. This study investigates the potential tradeoff between financial sector regulation and financial stability in nigeria and implications for financial inclusion and. National financial inclusion strategy dfs observatory. Pdf financial inclusion has been closely linked to economic growth. Financial statement is an important document you cant do without if you want to invest in a company but not without knowing its performance over a specified period. The conference will bring together academic\, accounting\, banking\, financial and insurance researchers and practitioners throughout africa and beyond to discuss issues impacting on banking\, finance and insurance sectors in africa. Nigeria confronts a challenging financial inclusion gender gap efina data provide a similar picture of gender differences, albeit with a smaller gender gap in 2014 than the gap revealed by the findex data. It generates local savings, which increase productive investments in local businesses. On the supply side, formal financial services are accessed through traditional. The predominant use of cash creates several major challenges for utilities and energy service. Six in ten nigerians 60% live below the poverty line, with research showing that being poor, rural and less educated are all barriers to inclusion.
The role of data in supporting financial inclusion policy bis. Financial inclusion as an effective policy tool of poverty. However, technological advances are increasingly reducing the cost of serving. Introduction the universal objective of 1microfinance is to make it possible for large numbers of lowincome people to. How to promote financial inclusion in nigeria world. Nov 11, 2017 home business efina advocates policies to drive financial inclusion in nigeria efina advocates policies to drive financial inclusion in nigeria on november 11, 2017 8. As africas largest economy, nigeria has the potential to drive consumers toward financial inclusion, yet internal strife and economic instability have made progress uncertain. Among citizens in the lowest income households representing the bottom 40% of the nations income range, only 2. Effects of cashless economy policy on financial inclusion in. In 2012, nigeria introduced the national financial inclusion strategy nfis and promoted it as a key driver in becoming one of the worlds largest economies the goal of nfis is to decrease the number of nigerians without access to financial services from 46. Download annual financial statement of nigerian companies. Online issn 23207906 implementation of financial inclusion. Financial inclusion in africa african development bank. Jan 26, 2017 nigeria financial inclusion report 2017 1.
How to promote financial inclusion in nigeria punch. Statistics revealed that only 2% of nigerian adults had access to credit, 21. The study identified the index for measuring financial inclusion in nigeria using the principal component analysis pca. First, it provides a brief overview of the african financial sector landscape. Pdf the drivers of financial inclusion in nigeria researchgate. Specifically, it means a financial system that serves as many people as possible in a country. The central bank of nigeria and other stakeholders intend to implement a national financial inclusion strategy to decrease the number of nigerians that are excluded from financial services from 46. Apr 22, 2014 the economy of financial inclusion in nigeria. Opportunities for nigeria s future of financial inclusion the effort the nigerian government and the cbn to increase financial inclusion through the years has resulted in not just an in crease in the number of people using financial services but also in the growth and sophistication of the financial system. Gemechu ayana aga is a private sector development analyst in the enterprise analysis unit of the world bank. Babajide et al financial inclusion and economic growth in nigeria international journal of economics and financial issues vol 5 issue 3 2015 631 is the provision of a low cost reliable means of payment to all, particularly the low income group. Nigeria financial inclusion report 2017 slideshare.
Nigeria s cashless or financial inclusion policies. Energy information administration eia, 2015, data bank. Nigeria financial inclusion insights by intermedia. This study identifies income, education, age, gender, urbanrural. Federal university lafia, nigeria, from 22nd24th sept. Financial inclusion in nigeria overseas development. It highlights differences among the 4 countries and their financial regulatory environment. It further examines different regulations that have influenced the development of financial inclusion through the use of the mobile financial services in the 4 countries. The many challenges of financial inclusion in nigeria.
The survey will provide actionable insights for a range of stakeholders involved in the dfs sector. Financial inclusion as the provision of a broad range of high quality financial. Regulatory impact on mobile money and financial inclusion. Inclusion gpfi,2 aimed to catalyze government actions to drive financial inclusion through a focus on digital technologies, and to provide a basis for country action plans and initiatives reflecting country context and national circumstances see box 1 for the headline hlps. The centre defines financial inclusion as a state in which all who can use them have access to a full suite of quality financial services, provided at affordable prices, in a convenient manner, and with dignity for the clients.
Archival data sourced from central bank of nigeria statistical bulletin was used for the estimation of the variables. Enahoro department of accounting, babcock university, ilishan, nigeria olabisi jayeola department of accounting, federal university of agriculture, abeokuta, nigeria dafe p. This paper summarizes financial inclusion across africa. Journal of internet banking and commerce, may 2017, vol. Regulatory impact on mobile money and financial inclusion in. The study examined the effects of financial inclusion on economic growth in nigeria from 2000 to 2018. Financial inclusion efforts should offer at a minimum, access to a range of financial services including savings, long and short term credit. Aug 19, 2017 download annual financial statement of nigerian companies latest annual audited pdf report of companies in nigeria stock exchange. Mar 29, 2017 the purpose of nigerias national financial inclusion strategy fis is to set a clear agenda for significantly increasing access to and usage of financial services by 2020. Balancing inclusive growth with financial stability. The goal of nfis is to decrease the number of nigerians without access to.
Nigeria financial inclusion insights survey technical. The data represent a third round of data collection since the global findex database was launched in 2011. Pdf financial inclusion and nigerian economy 1990 2015. Second, it uses the global financial inclusion indicators global findex database to characterize adults in africa that use formal and informal financial services and identify the barriers to formal account ownership. Implementation of financial inclusion strategy in nigeria sdmimd. Financial inclusion outlook naonal financial inclusion strategy financial inclusion iniavesby stakeholders 1 iden. A regional approach to financial inclusion has been identified as an important complement to the national efforts in many of the asean countries. Introduction the growing importance of financial inclusion, especially in developing economies, is perhaps underscored.
Inclusion strategy to decrease the number of nigerians that are. With only 58 million nigerians having access to financial services, plans are being put in place by banks and central bank of nigeria cbn to ensure that not less than 40 million individuals from. The report was conducted by world banks global findex database 2018 in collaboration with bill and melinda gates foundation. Operational performance of fiscal and monetary policies in nigerian financial institutions john a. The second is the role financial intermediation plays in increasing the volume of. Nigeria to advance financial inclusion, it is imperative that it financial. The results of the efina access to financial services in nigeria 2012 survey showed that 34. Mobile money services are being deployed rapidly across emerging markets as a key tool to further the goal of financial inclusion. The central bank of nigeria cbn adopted the national financial inclusion strategy nfis in 2012. Based on the foregoing issues at hand, the main aim of this study is to conduct an appraisal of the effects of cashless economy policy on financial inclusion in nigeria. Having a current account savings account on its own, is not regarded as an accurate indicator of financial inclusion. D, hcib department of accountingfinance, faculty of management and social sciences, godfrey okoye university, enugu.
Dudin financial inclusion as a strategy for enhanced economic growth and development lawrence uchenna okoye department of banking and finance, covenant university, ota, ogun state, nigeria. Religious challenges of islamic banking in nigeria muzammilu yunusa and nadhira bint nordin faculty of islamic and contemporary studies universiti sultan zainal abidin kampus gong bodak 20 kuala terengganu, malaysia. Read online nigeria confronts a challenging financial inclusion gender gap book pdf free download link book now. In other words, the study examines how cashless policy based on some selected factors lead to financial inclusion in nigeria. This policy brief provides a situation analysis on financial inclusion in nigeria, including a short analysis of how it may figure in chronic poverty, and processes of escaping poverty and impoverishment, and then goes on to assess the relevance of the four potential promising avenues identified in the global cpan financial inclusion policy.
International remittances and financial inclusion in subsaharan africa. In 2012, cbn defined a financial inclusion strategy for nigeria. National financial inclusion strategy financial inclusion. View financial inclusion research papers on academia. The informal sector is an important part of nigeria s financial inclusion landscape. This is evident from the policy directions and statistics given by the central bank of nigeria which clearly spells out the financial inclusion and financial deepening activities.
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