Financial Inclusion in Niger: Challenges and Opportunities: Niger

Selected Issues Papers, February 27, 2023

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Financial inclusion can increase economic growth and productivity and reduce poverty and inequality by helping people and firms—particularly SMEs—to save and invest, smooth consumption, and better manage financial risks.
The paper highlights Niger’s lag compared to other WAEMU countries in terms of access to and use of formal financial services, including for women and youth.
It underscores key demand and supply side challenges to financial inclusion as well as structural impediments.
The paper lays out key priorities for Niger to harness the potential of greater financial inclusion to support the country’s development agenda, including efforts to tackle low financial literacy, promote digitization, and address informality.

Niger’s lag relative to other WAEMU countries in access to and use of formal financial services.
Limited access for specific groups, including women and youth.
Demand-side challenges: low financial literacy and limited uptake of formal services.
Supply-side challenges: gaps in financial infrastructure and service provision.
Structural impediments, including a large informal sector.

Tackle low financial literacy through targeted education and outreach.
Promote digitization to expand access and reduce transaction costs.
Address informality to bring more individuals and firms into the formal financial system.
Support SMEs to save, invest, smooth consumption, and manage financial risks as part of broader development objectives.

Subjects: Digital currencies, Digital financial services, Financial inclusion, Financial markets, Financial services, International organization, Monetary policy, Population and demographics, Technology
Keywords: BCEAO MFI, development agenda, Digital currencies, Digital financial services, Financial Inclusion, Financial Institutions, Global, IMF staff calculation, MFI sector NPL ratio, Niger, Niger banking sector, Niger's lag