Financial inclusion: Emefiele charges banks, others on service provisions to rural dwellers

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele has challenged the Bankers’ Committee and other industry stakeholders to care for those living in rural communities by extending financial services to them so as to improve their economic wellbeing and reduce poverty.

 This, according to him is important because a situation where the population growth is above  the Gross Domestic Product (GDP) growth rate  calls for concerted effort in driving growth.

Emefiele made the call at the 11th Annual Bankers Committee Retreat with the theme: “Delivering Inclusive Growth: Leveraging Digital Finance” in Ogere, Ogun State.

The two-day gathering brought together, Chief Executive Officers of commercial banks and top executives of the CBN.

Specifically, he said the manner in which the rural population is growing seems as if those in these communities see it as a ‘responsibility to multiply’ and these people have to be cared for by encouraging them to engage in activities that will lead to economic prosperity and reduce rural-urban migration.

According to him, those in a leadership position should take up this challenge because a relationship has been established between insecurity and high level of unemployment.

Emefiele further called on financial institutions to do more in providing services to verifiable entities through digital channels.

“Even when they possess mobile devices, individuals in rural communities may be unable to provide unique identification numbers that are required to open accounts and e-wallets.

“In addition, the cost of enrolling individuals in rural communities has often undermined access to financial services for rural dwellers.

“As noted earlier, building bank branches in rural communities often comes at a high cost relative to the income generated from such branches. As a result, cash payment still remains the dominant channel.

The CBN he said, has therefore introduced several initiatives aimed at bringing low-income earners and the unbanked into the formal financial system.

For example, the Shared Agent Network Expansion Facilities (SANEF) project was introduced in 2018.

It is a joint initiative of the Central Bank of Nigeria (CBN) and the Bankers’ Committee expected to result in a rollout of 500,000 agent touchpoints by 2020.

The services to be delivered at such  touch points, include Cash-in, Cash- out, Funds Transfer, Bill Payments, Airtime purchase, Government  disbursements as well as remote  enrollment of BVN to an estimated 60 million Nigerians that are currently  under-banked or unbanked, Emefiele explained.