CBN Sets Target Of 80% of Bankable Adults Access to Have Financial Services by 2020
Oru Leonard
The central Bank of Nigeria (CBN), in furtherance of its mandate to promote a sound financial system in Nigeria and the need to enhance access to financial services for low income earners and unbanked segments of the society has forwarded on 1st November 2018, the National Financial Inclusion Strategy (NFIS) which seeks to ensure that over 80% of the bankable adults in Nigeria have access to financial services by 2020.
The Central Bank of Nigeria in collaboration with critical stakeholders in the digital financial Ecosystem such as the Nigeria Communication Commission, commercial bankers, mobile money operators and Telecommunication companies had conducted several study tours of other jurisdiction and have made significant progress during financial inclusion.
To achieve this the CBN introduced microfinance banking, Agent banking, Tiered know-your-customer requirements and mobile money operation (MMO) in pursuit of its objectives the inclusion rate still remained low and below expectations.
In view of the challenges to effective outreach to rural communities as well as the need to complement the services provided by other licensed entities, the CBN issued some regulations to provide for the licensing and operation of Payment Service Banks (PSBs) in Nigeria.
PSBs are expected to leverage on mobile and digital channels to enhance financial inclusion.
The purpose for setting up PSBs is to enhance financial inclusion by increasing access to deposit products and payment/ remittance services to small business, low income holders and other financially excluded entities through high- column, low -value transaction in a secured Technology- driven environment.
According to the powers coffered on the CBN governor by the CBN Act 2007 and BOFIA 1991 (as amended). It covers the definition; objectives; eligible promoters; licensing requirement; corporate governance; business conduct and permissible activities.
It will be recalled that the CBN in collaboration with stakeholders launched the NFIS on 23rd October 2012 with a view of reducing the exclusion rate to 20% by 2020.
