6 Reasons Why CBN Wants You To Be Financially Included
To the question of what financial inclusion meant ? I learnt that financial Inclusion is a state where financial services are delivered by a range of providers, mostly the private sector, to reach everyone who could use them. Specifically, it means a financial system that serves as many people as possible in a country. In recent time, financial Inclusion has assumed a critical development policy priority in many countries, particularly in developing economies.
The Nigerian financial inclusion strategy was launched on October 23, 2012 with an overall target of reducing the percentage of adult Nigerians that are excluded (do not have access to financial services) from 46.3% in 2010 to 20% in 2020 but for now according to the latest report Nigeria’s financial exclusion rate has dropped to 39.5% (as at 2014 most of which are women).
This has been attributed to concerted efforts to include more people in the formal financial sector. Financial inclusion will be achieved when adult Nigerians have easy access to a broad range of financial services that meet their needs at affordable costs. Its also important to note that globally about 2 billion people are financially excluded.
Now, why is it important to the CBN that you are financially included?
Bulk of the money in circulation in Nigeria circulate outside the banking system and this is not healthy for any nation. This forms core of the reasons why CBN is pushing ever harder for a financial inclusive Nigeria, other reasons include:
1. Access to financial services enables the poorest and most vulnerable in society to step out of poverty and reduces the inequality in society.
2. Financial inclusion not only helps individuals and families, but collectively it develops entire communities and can help drive economic growth.
3. Financial inclusion is about enabling and empowering people and communities: Enabling people to have the ability and tools to manage and save their money and empowering people with the skills and knowledge to make the right financial decisions.
4. Participation within the financial system leads to all kinds of individual benefits, including:
Ability to start and grow a business, which gives people an opportunity through micro-financing schemes for example to better long term prospects
Being able to pay for an education for children, which in turn enables a new generation of educated and informed individuals
The ability to handle uncertainties that require ad hoc and unexpected payments or ‘financial shocks’.
5. Financial inclusion through access to an account, savings and a payment system (whatever that maybe) enables potential and empowers men, women and whole communities. This in turn promotes investment within the community, provides jobs and again research shows that employment boosts status, income and ones outlook on life. Collectively this helps to invigorate the economy.
6. Mitigate shocks and manage expenses related to unexpected events such as medical emergencies, a death in the family, theft, or natural disasters; and improve their overall welfare.
Upcoming: 5 Key Ways To Be Part of Financial Inclusion Success In Nigeria