Financial services landscape in Nigeria - Sep 2010

The vast majority of Nigerians do not have access to basic banking services, which limits the ability of banks to mobilize deposits and consequently impacts investments in the real economy.

EFInA has undertaken research and analysis on the supply of financial services in Nigeria. The objective of the survey was to establish the extent to which Nigeria’s financial market is inclusive, i.e., serves the majority of Nigerians and in particular low income households. Access to a range of affordable, safe and reliable financial product and services– such as savings accounts, credit insurance and transfer services – provide the necessary lubricant for economic growth. Increased financial service access will lead to wealth creation in Nigeria.

The survey seeks to document Nigeria’s financial infrastructure, to establish levels of financial access and usage from a supply perspective and to provide the necessary context within which the levels and trends in access to these services can be evaluated. The aim of the supply side survey is not to provide a comprehensive overview of the market in its entirety but rather to consider the state of supply of and demand for financial services in Nigeria from the perspective of access and financial inclusion. In summary, the supply side survey:

  • Provides a comprehensive analysis of Nigeria’s financial sector (including microfinance)
  • Identifies potential barriers to increasing levels of financial inclusion
  • Makes recommendations for policy makers and financial services providers as to how financial inclusion in Nigeria can be enhanced
  • Identifies the gaps in the supply of products more suited to low income earners
  • Assesses the extent to which the financial infrastructure ensures the development of a more inclusive financial sector