The findings reveal that people with at least a secondary education and unemployed people had higher levels of debit card ownership, higher levels of account ownership of any type, and higher levels of account ownership in a financial institution. 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. The relative impact of income and financial literacy on. It generates local savings, which increase productive investments in local businesses. Nigeria financial inclusion insights by intermedia. However, the income convergence effect of financial inclusion remains only partially explored. First, it provides a brief overview of the african financial sector landscape. Nigeria the financial inclusion insights fii program responds to the need identified by multiple stakeholders for timely demandside data and practical insights into digital financial services dfs, including mobile money, and the potential for their expanded use among the poor. Financial inclusion is one of the objectives of the central bank of nigerias cashless policy introduced in nigeria in the year 2011. Data for the study are collected mainly from secondary sources such as statistical bulletins of the central bank of nigeria c. The central bank of nigeria cbn has launched financial inclusion strategy in october 2012. Testing the impact of financial inclusion on income. The role of data in supporting financial inclusion policy bis.
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. Also, people with at least a secondary education had higher. 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. Introduction the growing importance of financial inclusion, especially in developing economies, is perhaps underscored. In nigeria, new horizons for digital financial inclusion. The little data book on financial inclusion 2018 data. Mastercards road to inclusion report profiles the financially excluded and underserved and provides insights into how to bring them into the economic mainstream to tweet this news, copy and paste. Abstract this study uses survey data of over 22 000 respondents in nigeria, to provide evidence for the impact of two key drivers of financial inclusion. It helps in the overall economic development of the underprivileged population. Theory, practice and policy tueasday, 22 april 2014 by segun aina and dr. As africas largest economy, nigeria has the potential to drive consumers toward financial inclusion, yet internal strife and economic instability have made progress uncertain. Pdf financial inclusion has been closely linked to economic growth.
Between 2014 and 2017, the share of adults who have an account with a financial institution or through a mobile money service rose globally from 62 percent to 69 percent. Also, financial literacy has been identified as a key pillar of financial inclusion and that financial inclusion will be. The data represent a third round of data collection since the global findex database was launched in 2011. The efina access to financial services in nigeria 2012 survey revealed that 23. The impact of electronic banking on financial inclusion in. The central bank of nigeria cbn adopted the national financial inclusion strategy nfis in 2012. Covering more than 140 economies, the indicators of financial inclusion measure how people. Nigerias financial inclusion landscape includes both great hope and great challenges.
This was to generally assess the expansion of financial inclusion of nigerian from. Nigeria launches micro pension plan for informal sector president muhammadu buhari has formally launched the micro pension plan mpp as part of the federal governments initiative to achieve financial inclusion, a diversified and inclusive economy. Only 29% of farmers in uganda are financially included, compared with 39% of ugandans countrywide. Effects of cashless economy policy on financial inclusion. How to promote financial inclusion in nigeria world. The strategy articulated the demandside, supplyside and regulatory barriers to.
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. On the supply side, formal financial services are accessed through traditional. G20 financial inclusion indicators nigeria the world bank. In india effective financial inclusion is needed for upliftment of the poor and disadvantaged people by providing them the. Six in ten nigerians 60% live below the poverty line, with research showing. International remittances and financial inclusion in sub. Bridging the financial inclusion gender gap in smallholder.
Download the little data book on financial inclusion. Pdf the drivers of financial inclusion in nigeria researchgate. The pursuit of making financial services accessible at affordable costs to all individuals and businesses, irrespective of net worth and size respectively. This study besides establishing the growth enhancing role of bankbased financial intermediation. If you wish to download, we have provided the download link at the end of the document. This paper examines the effects of financial inclusion on the economic growth of nigeria 19822012.
In 2012, nigeria introduced the national financial inclusion strategy and promoted it as a key driver in becoming one of the worlds largest economies. National financial inclusion strategy revised financial inclusion in nigeria. This study investigated the extent to which bank agents have contributed in driving the inclusive growth agenda of the federal government of nigeria. This article analyse several indicators of financial inclusion in nigeria. And the world bank group in october 20 postulated the global goal of universal access to basic transaction services as an important milestone toward full financial inclusiona world where everyone has access and can use the. To investigate the effects of awareness of electronic channels on financial inclusion. Role of banks in financial inclusion in india sciencedirect. How to promote financial inclusion in nigeria punch. Financial inclusion for inclusive growth is a topic of contemporary significance and relevance.
In the light of this, the research seeks to examine the impact of electronic banking on. The high percentage of nigerians who are financially excluded coupled with the enormous advantages of a financially inclusive economy provides justification for the dogged pursuit of financial inclusion policy by the central bank of nigeria cbn and other stakeholders. The objective of paper is to examine status of financial inclusion in india and study its determinants. 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. To examine the effects of change in business models of financial service providers on financial inclusion. A new guide for financial transactions by ministries, agencies and departments mdas of the federal government has been released by the office of the accountant general of the federation agf. A measurement model of the determinants of financial. Abstract this paper uses world bank survey data, including about 10,000 households in five countries burkina faso, kenya, nigeria, senegal, and uganda to investigate the link between international remittances and households financial inclusion in subsaharan africa. Additionally, kendalls index of rank concordance has been derived to test for convergence of states in achieving financial. The document, which, also known as the countrys financial regulations, was released at the weekend. Measuring financial inclusion and the fintech revolution presents key findings from the global findex database, with detailed insight into how adults in more than 140 economies access accounts, make payments, save, borrow, and manage risk.
Financial inclusion in nigeria abuja, october 2018. Financial inclusion is aimed at ensuring that all adults have unhindered access to tailormade products that meets their financial needs at affordable cost within their vicinity. The little data book on financial inclusion 2018 is a pocket edition of the global findex database published in 2018. Pdf effectiveness of financial inclusion strategy in nigeria. The importance of financial inclusion arises from the problem of financial. The document below titled as national financial inclusion strategy is provided as reference for our readers who wish to read this document on our website without having to download. Specifically, it means a financial system that serves as many people as possible in a country. In nigeria today, 40 million of the 95 million adult population are financially excluded without access to formal or informal. Following the financial inclusion gender gap in nigeria, the financial inclusion gender gap in smallholder agriculture in nigeria was contributed majorly by gender differences in bank account ownership % and savings 7% at a financial institution. 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.
Lessons from latin america and caribbean maria luisa hayem, andrea reyes, ana maria torres. Using longitudinal data covering three survey waves on nigerian households, this study explores the potential of financial inclusion as an instrument for reducing income disparity. The paper empirically explores the level of financial. Specifically, it means a financial system that serves as many people as possible in a. In this blog, unsgsa staff who accompanied the special advocate on her recent visit to nigeria, look closely at how far the country has to go and what solutions hold greatest promise. Pdf financial inclusion entails access of the populace to financial services to tackle. Contents i acknowledgments iv executive summary v 1. Access the g20 financial inclusion indicators database download countrylevel data powered by the world bank. G20 financial inclusion indicators pdf glossary pdf. 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. 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.
The concept of financial inclusion has continued to gain global acceptance since it was identified as one of the key drivers of inclusive economic growth and development. Financial inclusion is an important step towards inclusive growth. The financial inclusion insights fii program, from kantar, produces original data and practical knowledge on trends in mobile money and other digital financial services. The power of digital financial inclusion to galvanize financial inclusion is increasingly clear in nigeria, a country that has committed to reaching 80% financial inclusion by 2020. International funding for financial brief inclusion. What financial inclusion in nigeria should include. This paper summarizes financial inclusion across africa. The next section revie ws the literature on the key drivers o f financial inclusion. Studies on topical issues affecting the nigerian economy are published in order to communicate the results of empirical research carried out by the. Financial inclusion in africa african development bank. Inclusion strategy to decrease the number of nigerians that are.
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