March 7, 2016/CBN

Background

The National Financial Inclusion Strategy (NFIS) was launched by the Federal Government of Nigeria in 2012 to reduce the number of adult Nigerians who are financially excluded from 46.3 per cent in 20101 to 20 per cent in 2020; and to empower the public through an ‘increase in coordinated financial literacy measures that are complemented by consumer protection‘2. The NFIS identified several implementation priorities amongst which was the development and implementation of a National Financial Literacy Framework.

The Central Bank of Nigeria (CBN) developed the Financial Literacy Framework (FLF) in collaboration with other stakeholders. The Framework was approved for implementation in January 2013. The Baseline Survey for Financial Literacy (the Baseline) was carried out in the context of the FLF. The survey was conducted with support from the National Bureau of Statistics (NBS), CBN Statistics Department, Enhancing Financial Innovation and Access (EFInA) and Marketworx Africa. The questionnaire used for the survey was based on the

Tanzanian Financial Capability Baseline Survey questionnaire developed by Marketworx Africa on behalf of the Bank of Tanzania, which was administered in Tanzania in 2013. The questionnaire was customised for the Nigerian context through stakeholder meetings, a pre-test and a pilot.

The overall goal of the Baseline survey was to measure levels of financial capability in Nigeria to guide financial literacy policy options so that key areas of concern can be addressed through financial education interventions, and progress measured over time. Specifically, the survey set out to:

• Determine the levels of financial capability amongst various sociodemographic segments of the Nigerian adult population.
• Identify the main issues to be dealt with in future financial education interventions.
• Provide data to help channel resources effectively to the most vulnerable market segments.
• Develop a baseline against which changes in the level of financial capability can be assessed over time on a national level.
• Develop empirical data as input for the formulation and review of relevant policies and programmes.

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