Nigeria: 28 Million Nigerians Remain Unbanked, Despite CBN’s Financial Inclusion Gains

The Central Bank of Nigeria (CBN) reported yesterday that over 28 million Nigerians still lack access to formal financial products and services, even though the country’s financial exclusion rate has fallen from 46.3% in 2010 to 26% in 2023.

In an effort to further reduce financial exclusion, the CBN’s ongoing recapitalization initiative is expected to empower banks to expand services into underserved markets, thus improving access to financial services across the nation.

CBN Governor, Mr. Olayemi Cardoso, addressed these initiatives at the 2024 International Financial Inclusion Conference in Lagos, themed “Inclusive Growth—Harnessing Financial Inclusion for Economic Development.” Cardoso emphasized the importance of the recent capital requirement adjustments for banks, stating: “This strategic move ensures that banks are well-capitalized, enabling them to take on greater risks, particularly in underserved markets. With stronger capital, banks can extend more loans and financial products to MSMEs, rural areas, and other vulnerable segments that previously struggled to access formal financial services.” He added that this approach not only strengthens financial stability but also stimulates inclusive growth through job creation and increased productivity.

Deputy Governor for Financial Sector Surveillance, Mr. Phillips Ikeazor, also highlighted ongoing challenges in reaching the CBN’s 95% financial inclusion goal, identifying specific barriers affecting women, youth, rural communities, Northern Nigeria, and Micro, Small, and Medium Enterprises (MSMEs). He noted, “Since the launch of the Financial Inclusion Strategy, which is now in its third phase, the CBN and its partners have made significant progress, reducing the exclusion rate to 26% as of 2023.”

Ikeazor further emphasized that while notable advances have been made, the remaining unbanked population—estimated at over 28 million people—continues to face challenges. In response, the CBN has introduced targeted initiatives, including financial and digital literacy programs, awareness campaigns, and regulatory frameworks aimed at closing the financial access gap, particularly for the most excluded demographics.