Huge market for banks as CBN says 73m Nigerians do not have accounts

0
388

More than 73m or 37 per cent of Nigerians still do not have bank accounts. That is higher than the population of many countries in the world, according to the Central Bank of Nigeria (CBN). This shows the huge market out there for banks in Nigeria. It also shows the size of work to be done in the CBN’s financial inclusivesness project in the plan to reduce the unbanked population to less than 20 per cent by the year, 2020 (202020 project).

Mr Dipo Fatokun, Director, Banking & Payment Systems, CBN, stated this at the third Annual Banking Security Summit organised by MAXUT Consulting in partnership with OneSpan, a global data security company on Thursday in Lagos.

Details:

Fatokun recalled that the apex bank in 2010 in Mexico made a commitment to reduce the population of unbanked Nigerians to at least 20 per cent by 2020.

“We made a commitment in Mexico then to reduce the number of unbanked to at least 20 per cent by 2020, then in 2010 we observed that over 46 per cent of bankable Nigerians didn’t have access to financial services.

“This was a major concern to the CBN and we made a commitment that in 10 years time, we would reduce the figure to far below 20 per cent.

“Today it’s not a good story because we have not done much, less than two years to 2020, at the last count we are just 37 per cent. A lot of work needs to be done,” Fatokun said.

Fatokun, who was represented by Mr Musa Jimoh, CBN Deputy Director, Banking & Payment Systems Department, said the apex bank was still committed to reducing the country’s unbanked population.

He said the move was part of the bank’s financial inclusion strategy aimed at ensuring greater participation in the nation’s financial sector.

Delivering a key note address on “Preparing for Open Banking in Nigeria,” Fatokun said the survey conducted then showed banking penetration was relatively low due to lack of access to financial services and cost of banking services.

He said people were afraid to bring their monies to banks because of banking charges, and that complex experienced in opening of accounts contributed to the trend.

Fatokun said the apex bank also reviewed Know Your Customer guidelines to tone down the requirements for opening Tier 1, Tier 2 and Tier 3 bank accounts to promote financial inclusion.

Meanwhile, Nigeria loses N12.5Bn

Mr Adebisi Shonubi, Managing Director (NIBBS) disclosed this at the third Annual Banking Security Summit organised by MAXUT Consulting in partnership with OneSpan, a global data security company in Lagos.

Shonubi said the figure was lost in 41,461 fraud cases between 2014 and 2017.

Specifically, he noted that 2014 fraud volume stood at 1,461, 10,743 (2015), 19,531 in 2016 and 25,043 in 2017.