The Central Bank of Nigeria (CBN) on Thursday said the overall national financial exclusion rate improved to 41.6 percent in 2016 from 46.3 percent in 2010.
Godwin Emefiele, governor of Central Bank who said this in the 2016 annual report of the National Financial Inclusion Strategy Implementation released yesterday, attributed the achievement to efforts of all stakeholders, which he said yielded positive impact.
According to the report, based on EFInA’s Access to Financial Services in Nigeria 2016 Survey, the formal financial inclusion rate remained constant at 48.6 percent between 2014 and 2016, which represented an achievement of 86percent of the 2016 target.
The overall financial inclusion rate, which also considers adult Nigerians who use informal financial services only, however, decreased from 60.5 percent in 2014 to 58.4 percent in 2016 due to a decline in the adult population segment that uses informal financial services only. Achievement stood at 84 percent of the 2016 target.
Under electronic payments and savings, the percentage of the adult population owning a commercial bank account, proxied by the percentage of adults having a Bank Verification Number (BVN), increased from 23.6 percent in 2015 to 28.0 percent in 2016.
The achieved value as at 2016 stayed behind the 2016 payments and savings targets of 56.4 and 45.6 percent, respectively.
The report noted that the percentage of adult population that had borrowed or paid back a loan through a regulated financial institution over the last 12 months increased marginally from 1.5 percent in 2014 to 1.8 percent in 2016, based on estimates from EFInA’s Access to Financial Services in Nigeria 2014 and 2016 Surveys. The 2016 target of a formal credit penetration of 28.8 percent was not reached.
The number of commercial bank branches per 100,000 adults marginally declined from 5.7 in 2015 to 5.6 in 2016, continuing the negative trend since 2010.The target of 7.5 branches per 100,000 adults was missed.
The number of ATMs per 100,000 adults increased slightly from 17.2 in 2015 to 18.0 in 2016. However, the achieved value was lower than the target of 46.2 ATMs per 100,000 adults for 2016.