A study shows that 36% of Nigerian adults are financially excluded among 106 million adults. This 36% of people have access to neither regulated nor unregulated financial services. Enhancing Financial Innovations and Access (EFIA) took responsibility for conducting the survey. Though there might be a marginal drop in the percentage overall, the growth was substantial. The total or an average number of excluded adults increased from 36.6 million to 38.1 million in the past few years.
The population growth rate is high among Nigerian Adults
Additionally, the findings of the study show that a particular number is constantly rising to 52.5 million. When they gain access via informal or unregulated financial services, this is the number that shows up.
In Nigeria, the population growth rate is currently rising and could be higher than the rate of financial inclusion growth. The EFIA finds out the gap between people who don’t have access to banks to the actual number of adults who are excluded. Furthermore, this difference goes together with the population growth rate.
After comparing the results from today with past surveys, we conclude that the proportion of adults (who are formally served) increases after 2014. There is a drop in the number of unbanked adults. South Africa and Rwanda are ahead of Nigeria under this category. These countries have only 7% of people who do not have financial services.
And, we go on with other findings from the research. For example, it shows Burkina Faso has the highest number of people who do not have financial services, and Kenya has the lowest. Moreover, the survey with the following data was between November 2020 to February 2021.
Digital Financial Service and its importance.
The first thing that comes to our mind is what Digital Financial Service is? It is nothing but a source that helps with different financial services. And these financial service includes payments, credit, savings, insurance, and many more. An interesting fact about the service is that it can turn our smartphone into anything like a checkbook, or a wallet, or connect to the bank branch, etc.
Fintech is a rising industry, and advocates point out the importance of digital financial services in Nigeria. And a report from the EFIA says that growth in DFS, agent networks, and owning mobile phones shows the opportunity to drive faster financial inclusion growth. And only mobile money can help in such a scenario.
However, the study fails to share details related to any digital financial services the Nigerians could be using. Moreover, The report fully concentrates on discussing the impact of uptake of mobile money on Nigeria’s Financial Inclusion.
What are your thoughts about Digital Financial Service and Nigeria’s condition? You can comment down below. If you like the content, don’t forget to like and share it with your close ones.