Yesterday, Yomi, our financial analyst, shared a rather interesting take on CBN’s plans to introduce a new domestic card scheme (AfriGo) to help conserve our nation’s depleting fx reserves.
Another one of AfriGo’s bold promises is worth looking into because it concerns 38 million Nigerian adults.
‘Financial inclusion’ is perhaps one of the most over-used filler words that can mean a lot of things and absolutely nothing at the same time.
What exactly does it mean for CBN?
In 2012, CBN rolled out a National Financial Inclusion Strategy (NFIS), which laid out ambitious targets to financially include 80% of its adult population by 2020. At the time, just 32.5% of adults were financially included.
Going by the NFIS definitions, a ‘financially included’ adult can access (affordable) services offered by either a formal or informal financial service provider.
A formal service provider is any licensed financial institution (like a bank, microfinance bank, fintech startups, insurance companies, pension firms etc.). In contrast, informal providers are unlicensed independent agents that provide some form of financial service (i.e. ajo or community savings group).
The NFIS wasn’t just about increasing access.