As africas largest economy, nigeria has the potential to drive consumers toward financial inclusion, yet internal strife and economic instability have made progress uncertain. This study contributes to existing literature on financial inclusion. D, hcib department of accountingfinance, faculty of management and social sciences, godfrey okoye university, enugu. The central bank of nigeria cbn adopted the national financial inclusion strategy nfis in 2012. Regulatory impact on mobile money and financial inclusion in. Financial inclusion in nigeria is driven by bank services. 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. The dependent variable of financial inclusion proxied by contribution of financial institutions to gross domestic product gdp was regressed on the explanatory. The level of urbanization as a % of total population. 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. The central bank of nigeria and other stakeholders intend to implement a national financial.
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. Financial inclusion in africa african development bank. Financial inclusion in nigeria overseas development. Having a current account savings account on its own, is not regarded as an accurate indicator of financial inclusion.
I am a strong believer of financial inclusion and therefore, this report got me hooked from the word go. 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. Download the little data book on financial inclusion. Effects of cashless economy policy on financial inclusion in nigeria. Financial inclusion, the development of novel methods to enable individuals at the base of the pyramid to access formal financial services and. National financial inclusion strategy financial inclusion. International remittances and financial inclusion in sub. It highlights differences among the 4 countries and their financial regulatory environment. 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. 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. 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. 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. The little data book on financial inclusion 2018 is a pocket edition of the global findex database published in 2018. Online issn 23207906 implementation of financial inclusion.
In 2016, the national association of microfinance banks namb began issuing its version. 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. Jul 25, 2014 he further said that, the determinants of financial inclusion in nigeria are young and growing population of approximately 170m people. The impact of financial inclusion on monetary policy in nigeria. Implementation of financial inclusion strategy in nigeria sdmimd. Read online nigeria confronts a challenging financial inclusion gender gap book pdf free download link book now. The strategy articulated the demandside, supplyside and regulatory barriers to. Lessons from latin america and caribbean maria luisa hayem, andrea reyes, ana maria torres.
The informal sector is an important part of nigeria s financial inclusion landscape. 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. The study examined the effects of financial inclusion on economic growth in nigeria from 2000 to 2018. All books are in clear copy here, and all files are secure so dont worry about it. The second is the role financial intermediation plays in increasing the volume of. The report was conducted by world banks global findex database 2018 in collaboration with bill and melinda gates foundation. 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. National financial inclusion strategy nfis to reduce adult financial exclusion rate in nigeria, from 46. A number of smallscale sample surveys on nfis administered at some of the fisplg meetings have enriched this data to some extent. How to promote financial inclusion in nigeria punch. 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.
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. Pdf effects of financial inclusion on economic growth in. Aug 19, 2017 download annual financial statement of nigerian companies latest annual audited pdf report of companies in nigeria stock exchange. Generally, there is a believe that once it works anywhere else including kenya, it can work in nigeria. In 2012, nigeria introduced the national financial inclusion strategy and promoted it as a key driver in becoming one of the worlds largest economies. Pdf financial inclusion and nigerian economy 1990 2015. Efina advocates policies to drive financial inclusion in nigeria.
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. In the 2010 report on nigerias financial services landscape, efina highlighted several constraints to financial inclusion, some of which are typically the purview of. International remittances and financial inclusion in subsaharan africa. 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. Project muse the impact of microfinance on financial. In other words, the study examines how cashless policy based on some selected factors lead to financial inclusion in nigeria. 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. This paper investigated the impact of fi on economic growth in nigeria. This study investigates the potential tradeoff between financial sector regulation and financial stability in nigeria and implications for financial inclusion and. A regional approach to financial inclusion has been identified as an important complement to the national efforts in many of the asean countries.
The study examined the effects of financial inclusion on economic growth in nigeria from 2000 to. Financial inclusion is achieved when adults have easy access to a broad range of formal. Financial inclusion outlook naonal financial inclusion strategy financial inclusion iniavesby stakeholders 1 iden. According to the national financial inclusion strategy,5 17. 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. This paper summarizes financial inclusion across africa. The goal of nfis is to decrease the number of nigerians without access to financial services from 46. Agricultural output growth the agricultural sector of nigeria s economy has the critical role of broadening the productive and export base. Mobile money services are being deployed rapidly across emerging markets as a key tool to further the goal of financial inclusion. The g20 made the topic one of its pillars at the 2009 pittsburgh summit. 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. Pdf the drivers of financial inclusion in nigeria researchgate. Nigeria financial inclusion report 2017 slideshare. Nigeria financial inclusion insights survey technical.
Ajisafes study was preoccupied with the monetary factors that could cause inflation, at the expense of fiscal factors. View financial inclusion research papers on academia. This paper examines the effects of financial inclusion on the economic growth of nigeria 19822012. 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. National financial inclusion strategy microfinance gateway. Regulatory impact on mobile money and financial inclusion. Opportunities and challenges for youth financial inclusion. The results of the efina access to financial services in nigeria 2012 survey showed that 34. Statistics revealed that only 2% of nigerian adults had access to credit, 21. More so, financial inclusion agenda should be considered and adopted in a concerted manner. Among citizens in the lowest income households representing the bottom 40% of the nations income range, only 2. How to promote financial inclusion in nigeria world.
Financial inclusion efforts should offer at a minimum, access to a range of financial services including savings, long and short term credit. Operational performance of fiscal and monetary policies in nigerian financial institutions john a. Nigeria to advance financial inclusion, it is imperative that it financial. 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. 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. Jan 26, 2017 nigeria financial inclusion report 2017 1. Not only are we not meeting the targets, we are even retrogressing. The role of data in supporting financial inclusion policy bis. 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.
Efforts by monetary authorities at improving financial inclusion in nigeria should focus on the variables in this index. 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. 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. The digital financial services landscape in nigeria. On the supply side, formal financial services are accessed through traditional. Nigeria financial inclusion insights by intermedia. 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. Findings from the fii tracker survey in nigeria and consumer focus groups. Energy information administration eia, 2015, data bank. 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.
Onou department of accounting, auchi polytechnic, auchi, nigeria abstract. Journal of internet banking and commerce, may 2017, vol. Financial inclusion as an effective policy tool of poverty. 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. Effects of cashless economy policy on financial inclusion in. The study identified the index for measuring financial inclusion in nigeria using the principal component analysis pca. Nigeria s cashless or financial inclusion policies. 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. Enahoro department of accounting, babcock university, ilishan, nigeria olabisi jayeola department of accounting, federal university of agriculture, abeokuta, nigeria dafe p. 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.
Effects of financial inclusion on economic growth in. 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. 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. A critical analysis of cashless banking policy in nigeria. Pdf financial inclusion has been closely linked to economic growth.
First, it provides a brief overview of the african financial sector landscape. 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. Pdf financial inclusion as a catalyst for poverty reduction in nigeria. In 2012, cbn defined a financial inclusion strategy for nigeria. Data for the study are collected mainly from secondary sources such as statistical bulletins of the central bank of nigeria c.
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. Download annual financial statement of nigerian companies. It generates local savings, which increase productive investments in local businesses. The data represent a third round of data collection since the global findex database was launched in 2011. 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.
Introduction the universal objective of 1microfinance is to make it possible for large numbers of lowincome people to. The many challenges of financial inclusion in nigeria. 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. The g20 made the topic one of its pillars at the 2009 pittsburgh summit g20 2009. Regulating fintech in nigeria and financial inclusion. National financial inclusion strategy dfs observatory. The cbn national financial inclusion strategy also lends credence to the dearth of regulations for fintechs in nigeria. 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. Balancing inclusive growth with financial stability. The predominant use of cash creates several major challenges for utilities and energy service. Introduction the growing importance of financial inclusion, especially in developing economies, is perhaps underscored. Apr 22, 2014 the economy of financial inclusion in nigeria. Leading southern marketleaders in financial inclusion called for a strategic programme of work to accelerate and realize the vision of doubling financial inclusion in the asean region by 2020. 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.
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. Federal university lafia, nigeria, from 22nd24th sept. Gemechu ayana aga is a private sector development analyst in the enterprise analysis unit of the world bank. Financial inclusion as the provision of a broad range of high quality financial. This study identifies income, education, age, gender, urbanrural. 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. 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 survey will provide actionable insights for a range of stakeholders involved in the dfs sector. 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. Inclusion strategy to decrease the number of nigerians that are. Financial inclusion in nigeria financial inclusion insights. Specifically, it means a financial system that serves as many people as possible in a country. Archival data sourced from central bank of nigeria statistical bulletin was used for the estimation of the variables. 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.
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