Africa is at a turning point in its financial history. With yearly GDP growth rates of more than 5% over the last decade, it is presently the world’s second-fastest-growing economic region behind Asia.
Many African countries, such as Nigeria, have seen high growth rates in recent years, and many aspire to reform their economy and living conditions. However, this transition has still not translated into considerable poverty reduction or shared prosperity. A significant section of the population comprises low-income families and disadvantaged groups with no adequate chances to better their living conditions.
Financial Inclusion in Nigeria – Overview
Nigeria is the most populated and the largest economy on the African continent. However, the largest African economy could not achieve its target of including 80 percent of its adult population in its National Financial Inclusion Strategy (NFIS), and only 64.1 percent of Nigerians were financially included by the end of 2022.
A higher percentage of exclusion in Nigeria leads to a poorer population and puts the country’s large share of the population into a state of economic disadvantage.
Financial Inclusion Nigeria – Facts and Stats
“Financial inclusion” is the term given to the population with access to basic financial services such as a savings account, credit, and insurance. Nigeria, on the other hand, not only failed to meet its overall financial inclusion target but also failed to meet the Central Bank of Nigeria’s sub-targets. Here are some facts about the financial inclusion situation in Nigeria-
- 38.1 million of Nigeria’s 106 million people (18 years and older), or 36% of the country’s adult population, are financially disadvantaged.
- By the end of 2020, Africa’s largest economy hoped to have 70 percent of its adult population have a transaction account with a regulated financial institution and/or have made an electronic payment through a regulated financial institution. Still, just 45 percent had done so, leaving a 25 percent deficit.
- The same was true of savings. From the target of 60%, only 32% was achieved, falling short of the aim by 28%.
- The 40 percent credit objective was also not met, with a 37 percent shortfall reported in 2020, implying that only 3% of the target was met.
- Only 2% of the 40 percent target for insurance inclusion was met, leaving 38% of the target unmet.
How Advansio is Helping the African & Nigerian Economy?
This failure in meeting the financial inclusion goals is a matter of great concern for the African economy and its poor population.
Advansio is a group of innovators that aims to contribute to Africa’s economic growth by encouraging financial inclusion for all Africans. It provides low-cost financial services to disadvantaged and low-income people. It aims to resolve the issue of financial exclusion by promoting long-term financial inclusion or inclusive financing solutions.
In its Five years of operation, the company has taken several measures to increase the financial inclusion percentage of the country. It has developed Nigeria’s best Agency Banking Platform – COVr Branchless. COVr Branchless integrates with mobile phones, the web, and point-of-sale devices to automate key financial operations such as account opening, instant debit card linking, agent-based deposit, cash withdrawals, fund transfer, and bill payment, KYC validation, and loan origination on behalf of the bank or financial institution.
This innovative fintech solution has helped more than 1 million customers in Africa and carried out millions of dollars worth of financial transactions.