Nigeria—Fostering Financial Inclusion through Digital Financial Services: Nigeria
Selected Issues Papers, March 6, 2023
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- Nigeria—Fostering Financial Inclusion through Digital Financial Services: Nigeria
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Bibliographic details
- Authors: Torsten Wezel, Jack J Ree
- Published: March 6, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400237195.018
Key findings on financial inclusion
- Financial inclusion in Nigeria has had undeniable successes, with the onboarding of residents to the banking sector consistently progressing.
- Overall exclusion rates continue to exceed official targets.
- Low financial literacy is a significant barrier to broader inclusion.
- Uptake of digital financial services, notably mobile money, is still lower than in peer countries.
Analysis of digital financial services and barriers
- Rapidly developing digital instruments present a strategic opportunity to advance financial inclusion.
- Overcoming low uptake of digital financial services requires:
- improving digital financial literacy,
- upgrading digital infrastructure,
- promoting incubation and sound practices of fintech firms.
- Nigeria’s Central Bank Digital Currency (CBDC) has enabling potential if accompanied by a comprehensive package of supportive policies.
Policy recommendations
- Systematically leverage digital instruments within Nigeria’s financial inclusion strategy.
- Implement programs to raise digital financial literacy among residents.
- Invest in upgrading digital infrastructure to support wider adoption of mobile banking and mobile money.
- Support fintech incubation and enforce sound practices to scale trustworthy digital financial services.
- Design comprehensive supportive policies alongside Nigeria’s CBDC to realize its enabling potential.
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