CBN directs MfBs to double efforts over 80% financial inclusion target

Motolani Oseni

The Central Bank of Nigeria (CBN) has directed Microfinance Banks to double efforts towards the realisation of the targeted 80 per cent financial inclusion rate by 2020.

The apex bank in a circular on Tuesday acknowledged the sub-sector’s contribution to financial inclusion in the country, stressing that financial inclusion has increased significantly since the National Financial Inclusion strategy (NFIS) was launched in October 2012.

A circular signed by Director, other financial institution Supervision Department, CBN, Mrs. Tokunbo Martins, said the 63 million adult Nigerians are financially served, leaving a gap of 36.6 million.

She said: “NFIS launched in October 2012 and revised in 2018 with the major objective of increasing the percentage of adult Nigerians who own bank accounts and use formal financial services from the baseline figure of 46.3per cent in 2010 to 80per cent by 2020.

“Over the last six years of implementation of the strategy, microfinance banks have contributed significantly towards the realization of the stated objective.

“As at the end of 2018, 63.2per cent or 63 million adult Nigerians were financially served to leave an inclusion gap of 36.8per cent or 36.6 million adult Nigerians that need to be included.

“Given the short time to the end of the target date, it has become expedient for all stakeholders to double efforts towards the realisation of the targeted 80 per cent inclusion rate.”

She maintained that “In a bid to mobilise stakeholders on the Revised NFIS 2.0 and accelerate progress towards the achievement of the target, the CBN held a stakeholders’ forum for all financial service providers in the six geo-political zones in the first and second quarters of 2019 which was attended by representatives of MFBs.

“The objective of the Forum was to expose stakeholders to the detailed provisions of the Revised Strategy (NFIS 2.0) and their expected roles/responsibilities in the financial inclusion agenda.

“One of the major resolutions reached the event was the setting of a target for each branch of a microfinance bank to acquire 64 new customers per month.

“This translates to 774 new bank accounts (measured by new BVN registration) per branch per year. Given the urgency of this task, it is important to cascade the target to your branches for their information and implementation.

“Consequently, all MFBs are hereby requested to implement the above resolution and disseminate same to all their branches (where applicable) to ensure concerted efforts towards achieving the overarching target of 80per cent financial inclusion by the year 2020.”