The Central Bank of Nigeria (CBN), on Wednesday, said its various efforts at capturing more of the population into the formal financial system are gradually yielding fruits.

According to the apex bank, the number of Nigerians outside of the formal sector dropped to 39.7 from 46.3 per cent between 2010 and the end of last year.

In a presentation at a seminar for business editors and correspondents in Umuahia, capital of Abia State, Paul Eluhaiwe, director, Development Finance Department of the CBN, said the attainment is impressive going by the target of 20 per cent by 2020.

More specifically, Eluhaiwe who was represented by Dr. Polycarp Ishaku also of the DFD, explained, that the improvement so far recorded between 2010 and last year had come from the north central, south west and south east geo-political zones.

While the population of adults excluded from the formal financial system in the north central zone declined by 26.7 per cent from 44.2 per cent of those excluded to 32.4 per cent; the south west zone recorded 25.1 per cent improvement from 33.1 to 24.8 per cent. The South east zone improved by 19.8 per cent; followed by 17.3 per cent in the south-south; 12.9 per cent in the north east; while the least growth of 6.3 per cent was attained in the north-west.

He noted that it was part of its effort to adequately tackle the huge percentage of excluded adult Nigerians that the CBN, in collaboration with stakeholders, in October last year, launched its financial inclusion strategy.

He stressed that out of the 80 per cent targeted for inclusion, “70 per cent would be in the informal sector and 10 per cent in the formal sector.”

He called for the collaboration of various stakeholders like large, medium, small and micro scale enterprises in the efforts to ensure it attracts more people into the financial system.

This, he continued, is even more important among “those in the micro category (who) have over the years, been served by informal financial institutions such as non-governmental organisations, financial cooperatives, credit unions and specially licensed microfinance banks.”

One concern among stakeholders, he noted, are critical factors that would ensure effectiveness and efficiency in service delivery such as financial identity, which remains a key risk management strategy in financial inclusion programmes, which is being compounded by the low literacy level.

Source: Daily Independent (by Kingsley Ighomwenghian and Efe Ebelo)