Explainer

Following a recent publication on the 27th of March with the title: ‘Poverty pushes nearly 50% of adult Nigerians out of financial inclusion—EFInA’—we  are offering this explainer to shed light on the potential miscommunication that may arise from an interpretation of the headline.

While the content of the article correctly reported the findings from the A2F 2023 survey with extracts from the report, the above title suggests a mass exit from the formal financial system. It also suggests that financial inclusion is not resilient enough to tackle the poverty challenge.  Hence, we must set the record straight.

EFInA’s A2F 2023 survey reports that Poverty is a major driver of financial exclusion. Nearly 50% of unbanked adults have no financial account because they have no, little, or irregular income. Hence, EFInA recommends that complementary policies to financial inclusion that tackle endemic poverty with regards to social investments in education, vocational skills, entrepreneurship, health, and market-friendly economic policies are important to ensure the wider social impact of financial inclusion.

We would like to appreciate the intention of the authors to throw light on the challenge of financial exclusion in Nigeria, particularly the role of economic exclusion and poverty as key drivers of financial exclusion.

EFInA fully recognizes that despite the objectivity of data, the interpretation of data can sometimes be subjective. We remain committed to sharing credible and reliable data and insights that enrich and strengthen an inclusive financial system in Nigeria.