Management of Financial Inclusion Strategy in Nigeria
- February 2, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue I, January 2019 | ISSN 2454–6186
Alphonsus Chukwu Ajugwe, PhD.
Abstract: Financial Inclusion is becoming a very important component in the financial system because of its obvious advantages as a stimulus to economic growth and stability. This underpins the fact that Financial Inclusion is regarded as panacea for poverty alleviation in the developing countries. To this end, the Central bank of Nigeria (CBN) has been on the driver’s seat for the introduction, projection, and the success of the scheme in Nigeria.
The aim of this paper is to critically examine and to illustrate different strategies adopted by the CBN in particular and other governmental agencies in stimulating Financial Inclusion, the extent of the success of the scheme, its positive impact on the economy and challenges facing full realization of the objectives of Financial Inclusion in Nigeria.
Developing countries like Nigeria are coming to realize the importance of financial inclusion and they have been adopting different strategies to deepen and broaden the scheme. More emphatically, they looked at it as a veritable tool for economic growth and development and apotent instrument for catching up with other developed countries. And to follow the footsteps of emerging countries such as China, India and some Asian countries which were able to mobilize their recourses to see the development of financial inclusions. It is hoped therefore, that if Nigeria adopts consistent and effective policies that will engender financial inclusion from 36% it is currently to about 70% and that will give Nigeria a quantum leap to economic development. The above deduction is based on the premises that the low income group consist the greatest number of the population in Nigeria and mobilizing them into financial inclusion will lead to accumulation of saving and investable funds, which are the keys to economic growth. This view is also supported by Mehratraet’al (2009) when he opined that access to financial services allows the poor to save money outside their house safely, and helps in mitigating the risks that the poor faces as result of economic shocks.