Can Nigeria achieve financial inclusion within the next few years?

Nigeria continues to face challenges in achieving financial inclusion, with patterns still below the National Financial Inclusion Strategy target of 20 per cent financial exclusion by 2020. Olayinka David-West, the Academic Director and senior fellow for information systems at the Lagos Business School, delved into the issues hindering progress in a recent CNBC Africa interview. According to David-West, there are six key constraints impeding financial inclusion in Nigeria. These constraints include global identity and KYC (know your customer), consumer protection, cybercrime, data protection, enabling financial inclusion at the last mile, DFS interoperability, and infrastructure inadequacies. The disjointed identity systems in the country, such as the national identity numbering system managed by NIMSI and BVN for the banking industry handled by the bankers' committee, further complicate the situation. Despite efforts to increase financial inclusion in the past years, the financial exclusion rates have risen between 2014 and 2016, highlighting the urgent need for solutions. To address these challenges, David-West emphasized the importance of stakeholder engagement and regulatory reforms. The recent financial inclusion conference organized by the Lagos Business School brought together regulators, legislators, and industry players to discuss the legal, regulatory, and operational aspects of financial inclusion. The conference focused on key issues like responsible finance initiatives and improving agency banking services at the last mile. While banks are making strides in digital banking services, reaching unbanked and underbanked populations remains a challenge due to factors like limited access to smartphones and concerns about digital security. David-West stressed the need for tailored solutions that consider the diverse needs of Nigeria's population, including those in rural areas and non-English speakers. Achieving financial inclusion in Nigeria will require a multi-faceted approach that addresses infrastructure gaps, regulatory barriers, and consumer trust issues.