ACHIEVING FINANCIAL INCLUSION IN NIGERIA
SANUSI, LAMIDO SANUSI, CON
GOVERNOR, CENTRAL BANK OF NIGERIA
Presentation Delivered at the Financial Regulators Forum
18th Nigerian Economic Summit
Transcorp Hilton Hotel, Abuja
5th December, 2012
OUTLINE
 Introduction
 State Of Financial Inclusion In Nigeria
 Nigeria’s Path To Financial Inclusion
 National Financial Inclusion Strategy (NFIS)
 Role Of The CBN in Financial Inclusion
 Role Of The Major Stakeholders In Financial Inclusion
 Progress Made Towards Financial Inclusion
 Conclusion
2
INTRODUCTION
 The Central Bank of Nigeria (CBN) launched the National Financial Inclusion
Strategy (NFIS), in October 2012
 The NFIS is a concerted attempt to increase access to a range of financial
services such as payments, savings, remittances, pension, insurance and credit
at an affordable cost to consumers
 Having a financial inclusion strategy can lead to improved income, poverty
reduction and a stable financial system
 Global efforts toward financial inclusion date back to 2009, when a Financial
Inclusion Summit was convened in Pittsburgh, U.S.A as part of the G20.
 So far, over 60 countries have initiated financial inclusion reforms in recent
years
3
STATE OF FINANCIAL INCLUSION IN NIGERIA
 Nigeria’s rate of financial exclusion is currently at 39.7%, according to the 2012
survey conducted by Enhancing Financial Innovation and Access (EFInA)
Formally banked
Adults who has access to
or use financial services
supplied by ‘Deposit
Money Banks’
Formal other
Adults who has access to
or use formal financial
services and financial
products not supplied by
‘Deposit Money Banks’
Informal only
Adults who has access to or
use any unregulated financial
institution or informal service,
such as cooperatives or
moneylenders
Completely Excluded
Adults without formal
or informal financial
products
Source: EFInA Access to Financial Services in Nigeria 2012 survey
4
NIGERIA’s PATH TO FINANCIAL INCLUSION
 Efforts at financial inclusion in Nigeria date back to 2005 with the launching of
the Microfinance Policy, Regulatory and Supervisory Framework, subsequently
revised in 2011
 Key elements which the Policy sets out to achieve are:





Assist Microfinance Banks to set up an Apex Regulatory Body
Establish a Microfinance Certification Programme
Set up credit bureau
Promote the setting up of rating agencies for Microfinance Banks
Establish Micro, Small and Medium Enterprises Development Fund
(MSMEDF)
 The Central Bank of Nigeria has delivered on all of the above except the
MSMEDF on which we are working to finalize modalities and guidelines for its
implementation
5
NIGERIA’s PATH TO FINANCIAL INCLUSION
 In 2011, Financial Regulators from 20 developing countries including Nigeria
made financial inclusion commitments referred to as the “MAYA
DECLARATION”, in Rivera Maya, Mexico
 The pledge seeks to:

Create an enabling environment that substantially lowers the cost of
financial services through the deployment of innovative technology

Implement a sound and appropriate regulatory framework that balances
the goals of financial inclusion, integrity and stability

Recognize consumer
financial inclusion

Make evidence-based financial inclusion policy a priority by collecting and
analyzing comprehensive data
protection and empowerment as key pillars of
6
NIGERIA’s FINANCIAL INCLUSION STRATEGY
Nigeria, through its Maya Declaration is committed to reduce its rate of financial
exclusion from 39.7 per cent in 2012 to 20.0 per cent of the population by 2020
through the implementation of seven key interventions:
 Simplified KYC Framework
 Agent Banking Regulatory Framework
 National Financial Literacy Framework
 Consumer Protection Framework
 Mobile-Payments and “Cash-less” Policy Initiative
 Establishing Linkages between government, DFIs, DMBs and MFBs / MFIs
 Introduction of Credit Enhancement Schemes and Programmes – MSMEDF,
NIRSAL and EDCs
7
NIGERIA’s FINANCIAL INCLUSION STRATEGY
 Key interventions are expected through the following targets to directly reduce
the rate of financial exclusion from 39.7 per cent in 2012 to 20.0 per cent of
the population by 2020
8
Source: National Financial Inclusion Strategy (2012)
ROLE OF THE CBN IN FINANCIAL INCLUSION
 CBN aims to reinforce its function in ensuring monetary stability and sound
financial structure, so as to enhance economic development
 In addition to implementation of seven key interventions, the Bank will
continue to adopt some specific models to help drive financial inclusion



Transformation of the payment system
Ensuring healthy financial evolution through the development of
specialized banks and alternative sources of finance
Financial Education and Consumer Protection
 Creating effective policy and regulatory environment that empower and
protects the populace - Financial System Stability Framework
9
ROLE OF THE MAJOR STAKEHOLDERS IN FINANCIAL INCLUSION
The Financial Inclusion Strategy clearly provides the road map for the activities of
all stakeholders in the provision of financial services for growth and development
of the economy. There are three major stakeholders in the National Financial
Inclusion Strategy (NFIS) namely:
 The ‘Providers’ – financial institutions and partner infrastructure and
technology providers – DMBs, DFIs, MFBs / MFIs, NIBSS, Telcos …
 The ‘Enablers’ - regulators and public institutions responsible for setting
regulations and policies in respect of financial inclusion - FSRCC
 ‘Supporting Institutions.’ Partners and experts with the mission to support
Nigeria in meeting its economic objectives and delivering on their technical
assistance mandates – IFIs and NGOs
10
PROGRESS MADE TOWARDS FINANCIAL INCLUSION
 The Financial Inclusion Strategy has been validated and launched
 A Consumer Protection Department and a Financial Inclusion Secretariat within
the CBN have been established
 Strategic alliances to develop agent banking initiated with the Nigerian
Communications Commission (NCC) and the Nigerian Postal Service (NIPOST)
 The cashless policy implementation, which commenced in Lagos, has been
reviewed and would be extended to other States of the Federation with
refinements
 The Nigeria Incentive Based Risk Sharing System for Agricultural Lending
(NIRSAL) has been given presidential approval and is being implemented
 A ‘Financial Literacy Framework’ and ‘Guidelines for Agent Banking’ are being
finalized
11
CONCLUSION
 Financial sector operators are to implement the strategy, while the
oversight function resides with the Financial Services Regulatory and
Coordinating Committee (FSRCC)
 Optimistic that despite some of the challenges highlighted, with
commitment and determination, we shall collectively reach our goal
 An affirmation that we are determined to drive this process and make
the Nigerian financial inclusion model a trademark for other countries
to replicate
12
I thank you all for your attention…
13