A financial expert, Mrs Oghogho Osula, has identified lack of adequate infrastructure as major impediment to the 2020 80 per cent financial inclusion target of Nigeria.
Osula, former Managing Director, Coronation Trustees Ltd., stated this at the inauguration ceremony of the new executive of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos on Saturday.
She said infrastructure challenges such as network failure, data band issues and security fears were problems affecting financial inclusion.
Osula said Nigeria still lacked adequate infrastructure to achieve the level of inclusion desired in the country.
Speaking on the theme: ‘Deepening Financial Inclusion in the Nigerian Capital Market,’ she stressed the need for more financial literacy programmes to bring financial services to the undeserved population.
Osula said collaborative efforts of the Securities and Exchange Commission, the Nigerian Stock Exchange, the Central Bank of Nigeria and operators should be deepened to enhance financial inclusion.
On ways to deepen financial inclusion, she said the use of shared agent network facility could be explored to deepen and improve financial inclusion.
Osula added that media campaigns and technology, among others could be used to bring financial services to the undeserved population.
“Nigeria has a large mobile market, with about 133 million subscribers and a market penetration of around 75 per cent in 2014, according to the Nigerian Communications Commission.
“This huge number provides an opportunity to deploy easy-to-use technology that can improve access to financial services across Nigeria mobile financial service platform and can be the answer to bridge the gap in financial inclusion.
“There are 35 million Bank Verification Numbers (BVNs) at the moment. Estimated 10 million of this number is adjudged to be financially included and financially served.
“This being that BVN holders are actively engaged in financial transactions through banks, microfinance banks, while the remaining 25 million are generally considered to be financially underserved.
“Also, an estimated seven million financially underserved individuals do not own bank accounts but enjoy limited financial services through informal arrangements such as cooperatives, contributions, among others.
“It follows, therefore, that only about 42 million or 42 per cent of the estimated 100 million adult Nigerians enjoy some form of financial inclusion,” Osula said.
She said the government and stakeholders needed to partner more through policies and enlightenment initiatives in order to meet the 2020 financial inclusion target.
