At the heart of economic development lies the concept of financial inclusion, which the World Bank describes as providing useful and affordable financial services to individuals and small businesses to foster economic growth. These financial services typically include payments, credits, and insurance, and in the bid to bridge the financial inclusion gap, various stakeholders, ranging from traditional banks to fintech companies, have adjusted their offerings to reach a wider audience. But how well did Nigeria fare in 2023 in terms of access to financial services? Let us turn to the data for insights. What is the Overall Financial Inclusion Rate in Nigeria in 2023? The most recent data indicates that Nigeria’s financial inclusion rate stands at an impressive 74%. This surge signals that significant strides have been made towards comprehensive financial inclusion in 2023. How many Nigerians make electronic payments? The digital revolution has significantly impacted financial transactions, with electronic payments becoming increasingly popular, even in the informal sector, especially since the entry of Moniepoint, Opay, and other similar financial service providers into the market. As a result, the percentage of the adult population that holds a transaction account with a regulated financial institution and/or has conducted electronic payments through such an institution in the last year is a record 52%. This figure indicates a growing trend in the adoption of electronic transactions, further complementing the nation’s efforts at financial inclusion across the board. How Many Nigerians Have Access to Credit? In 2023, Nigeria saw only 6% of its adult population utilize credit products from regulated financial institutions. The low credit uptake suggests that the eligibility criteria may be too strict and awareness is too low, raising questions about the inclusivity of credit services in the country.
How Many Nigerians Have Access to Insurance? Currently, only 3% of Nigeria’s adult population is covered by regulated insurance policies. This data points to the need for increased awareness and accessibility to insurance products to ensure that the general population has a wider safety net. How Many Nigerians Have Access to Pension? In Nigeria, only 8% of the adult population actively contributes to or receives a pension through regulated pension schemes. This low figure emphasizes the need for continued efforts to enhance pension awareness and participation to guarantee financial well-being in the later stages of life for Nigeria’s elderly population. How Many Nigerian Adults Have Access to Bank Accounts? Presently, 38% of Nigeria’s adult population holds a savings account with a regulated financial institution or has engaged in savings activities through such an institution in the last 12 months. This data highlights progress and potential improvement areas in expanding access to basic banking services. Where Does this Data Come From?All data cited in this report were sourced from the following resources:
- EFInA Access to Financial Services in Nigeria 2023, via: https://a2f.ng/wp-content/uploads/2023/12/A2F-2023-Event-Day-Presentation-fin al.pdf
- KPMG Nigeria via: https://assets.kpmg.com/content/dam/kpmg/ng/pdf/nigerias-financial-inclusion-the -way-forward.pdf
