A recent report released by EFInA in Lagos, titled ‘A2F 2023 Survey – Key,’ focused on ‘Unlocking insights to accelerate financial and economic inclusion,’ showcased a notable surge in digital service usage among Nigerians, reaching 45% in 2023 compared to 34% in 2020.
The report highlighted a substantial increase in the adoption of digital financial services, stating, “Forty-five per cent of Nigerians engaged with digital financial services within the past 12 months, marking a significant rise from 34 per cent recorded in 2020.”
Furthermore, the study revealed a significant uptick in the number of adults utilizing transactional accounts and engaging with digital financial services, surging from 60% in 2020 to 83% in 2023.
Of particular note, 31% of respondents reported receiving digital income payments, while 75% confirmed making digital payments for goods, illustrating a substantial embrace of digital financial transactions.
However, the report highlighted challenges faced by a notable portion of formally served Nigerians, including concerns regarding fraud incidents, subpar service quality, high banking costs, and a lack of transparency in financial information. Additionally, it emphasized that limited awareness and understanding of available financial products continued to impede trust in non-bank formal products.
The report underscored the prevalent reliance of Nigerians on physical financial coping mechanisms to achieve financial goals, manage liquidity distress, and navigate financial shocks. Both active measures, such as taking on extra work and cutting expenses, and passive approaches, like taking no action, remained prevalent choices among respondents.
Highlighting a concerning trend, the report indicated that over one-third of adults reported low financial capability, coupled with relatively limited access to efficient formal financial mechanisms. Consequently, Nigeria experienced a 12% decrease in the proportion of financially healthy adults.
Poverty emerged as a significant factor contributing to financial exclusion, with nearly 50% of adults lacking financial accounts due to insufficient income.
The report recommended complementary policies to address financial inclusion barriers, suggesting a multifaceted approach that tackles endemic poverty through social investments in education, vocational skills, entrepreneurship, health, and market-friendly economic policies. These measures aim to ensure a broader social impact of financial inclusion across Nigeria.
This insightful report sheds light on the evolving landscape of digital financial services in Nigeria and emphasizes the need for concerted efforts to address underlying challenges for enhanced financial inclusion.
