Business
28m Nigerians lack access to financial services —CBN
The Central Bank of Nigeria (CBN), yesterday, revealed that about 28 million Nigerians do not have access to formal financial products and services in spite of a reduction in the country’s financial exclusion rate to 26 per cent in 2023 from 46.3 per cent in 2010.
This was disclosed by the bank’s Deputy Governor, Financial Sector Surveillance, Mr. Phillips Ikeazor, at the ongoing 2024 International Financial Inclusion Conference in Lagos with the theme, ‘Inclusive Growth—Harnessing Financial Inclusion for Economic Development.’
Ikeazor, however, said that the ongoing recapitalisation exercise would empower banks to take risks in underserved markets and by extension enhance financial inclusion in the country.
He highlighted challenges to achieving the 95 percent financial inclusion goal and measures to addressing them.
“Since the launch of the Strategy which is currently in its third iteration, the Central Bank of Nigeria and stakeholders have worked tirelessly to reduce financial exclusion rates”, Ikeazor said.
“Owing to these efforts, the exclusion rate has dropped from 46.3% in 2010 to 26% as of 2023.
“Despite this progress, there are over 28 million Nigerians who still have no access to formal financial products and services and certain challenges persist, particularly in ensuring financial access for five most excluded demographics: women, youth, rural communities, Northern Nigeria and Micro, Small and Medium Enterprises (MSMEs).
“In recognition of these key excluded demographics and in a bid to address these disparities, the Central Bank of Nigeria has rolled out targeted programs and initiatives, including Financial Inclusion drives, financial and digital literacy awareness, sensitization campaigns, and the release of Frameworks and Guidelines targeted at accelerating financial inclusion and guiding players in the space.”
In his welcome address, the CBN Governor, Mr. Olayemi Cardoso, said that the apex bank was making efforts to promote financial inclusion in the country.
Cardoso said: “In line with its efforts to deepen financial inclusion, the CBN recently introduced new minimum capital requirements for banks.
“This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets.
“With stronger capital bases, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have previously struggled to access formal financial services.”
“This policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity.”
Multichoice has announced another increase in the prices of its DStv and GOtv packages, set to take effect from March 1, 2025.
The company revealed this in a statement to customers on Monday titled, “Price adjustment on DStv and GOtv packages” and signed by the CEO John Ugbe.
“Dear Customer, please note that effective 1 March 2025, there will be a price adjustment on all DStv packages.
“This is to enable us to continue to offer our customers world-class homegrown and international content, delivered through the best technology,” the statement read.
This latest adjustment comes nearly a year after the last price review.
According to the company, the new prices are as follows:
DStv Packages:
Compact: From N15,700 to N19,000
Compact Plus: From N24,500 to N30,000
Premium: From N29,500 to N44,500
GOtv Packages:
GOtv Value: From N3,600 to N3,900
GOtv Plus: From N4,850 to N5,800
GOtv Max: From N6,200 to N8,500
GOtv Supa: From N9,600 to N11,400
GOtv Supa Plus: From N13,500 to N16,800
Multichoice attributed the price increase to the rising cost of doing business in Nigeria.
The company cited factors such as currency depreciation and high inflation, which have significantly increased its operational expenses.
Nigerian businesses, while expressing optimism about the macroeconomic environment, have projected further depreciation of the naira this month and the first three months of 2025.
The Central Bank of Nigeria (CBN) disclosed this in its Business Expectation Survey Report for November 2024.
The report, however, noted that firms’ outlook on volume of business activities, financial conditions, access to credit, volume of total order and average capacity utilization, were pessimistic.
It stated: “The overall confidence index (CI) on the macroeconomy indicated that businesses were optimistic in November 2024.
“Businesses expect the Naira to depreciate in the current month, next month and next 3 months but appreciate in the next 6 months.
“The optimism on business outlook in the current month is driven by the opinion of respondents from all the sectors.
“The Construction Sector expressed optimism on own operations in the review month.
“The outlook of respondents on the volume of business activities, the volume of total order, financial conditions, and access to credit were negative in the review month.
“Volume of business activity respondents expressed optimism on volume of business activity for the next month and subsequent periods under review.”
The report also showed that businesses hope to employ more workers in the month of December 2024 with the Agriculture sector having the highest prospect for expansion.
Meanwhile, the CBN in its latest Consumer Expectation Survey Report said that consumers were pessimistic about the macro economy in November.
According to CBN report, households projected a rise in the cost of transportation, rent, car/vehicle, house purchase, and medical expenses this month.
The report showed that 61.1 per cent and 57.6 per cent of respondents perceived that prices of non-durable and durable household items, though high, will keep declining this month and next month respectively.
The Central Bank of Nigeria (CBN), on Friday, threatened to impose fines on banks hoarding cash.
It said that the ongoing cash scarcity at Automated Teller Machines (ATM) and over the counter being witnessed across the country was embarrassing and unacceptable.
CBN Governor, Olayemi Cardoso, spoke at the annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria.
There have been recent reports of cash shortages at banks, both at ATMs and over the counter.
Cardoso said: “We also recognise the ongoing challenges with cash availability at ATMs, which disproportionately affect ordinary Nigerians.
“To address this, we are conducting spot checks across deposit money banks, and we will impose penalties on underperforming institutions.
“Effective December 1, 2024, customers are encouraged to report any difficulties with withdrawing cash from bank branches or ATMs directly to the CBN through designated phone numbers and email addresses for their respective states.
“Guidelines will be distributed widely to raise public awareness. We will also urge full regulatory compliance by all stakeholders, including mobile money operators and POS agents, to promote digital transaction channels and improve service delivery.
“I repeat, financial institutions found engaging in malpractices or sabotage will face severe penalties.
“The CBN will continue to maintain a robust cash offering to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.”
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