Nigeria's Population Growth Outpaces Financial Inclusion Growth
A study the Enhancing Financial Innovations and Access (EFA) has revealed that about 36% of Nigeria's adults lack access to both regulated and unregulated financial services, and as well suggests a marginal drop in the percentage of financially excluded adults.
The EFA attributes this mismatch towards the population growth rate which has surpassed the rate of financial inclusion growth.
As at the time of writing this news, the following information was gathered;
Reports from the Enhancing Financial Innocent and Access (EFA) have shown that a large number of Nigeria's adults lack access to both regulated and unregulated financial services. The study further revealed over the past two years, the percentage of financially excluded adults increased from 36.6 million to 38.1 million.
In addition, the findings showed that (the number of financially excluded adults rose to 2.5 million when excluding those that gained access via the so-called informal or unregulated financial services.
However, the EFA ascribes this an unsuited condition (between the number of Nigerians that are unbanked and the actual number of excluded adults) to the population growth rate. In general Nigeria's Population is outpacing the rate of financial Inclusion growth.
In comparison with the latest and past findings, Nigeria's proportion of served adults increased for the first time since 2014 and yet there is an obvious drop in the number of unbanked adults. And when compared with other countries like South Africa, and Rwanda where 7% of the adult population is unbanked, Nigeria remains far behind.
According to the findings from a study conducted from November 2020 to February 2021, Kenye emerged as the next country with the lowest number of unbanked adults at 11%, while Burkinafaso at 39% had the highest number.
Other important updates from the news include;
The study has been considered very important as it provides adequate information for advocates of emerging Fintech asserting the growing importance of digital financial services in Nigeria.
In conclusion, the study report fails to share details of the actual digital financial services or products that Nigerians are using instead, the report seems to only discuss the potential impact of the increased uptake of mobile money on Nigeria's financial Inclusion targets.
What are your thoughts on the current number of unbanked Nigerian adults?
