Abdulwahab Isa 
Financial literacy is key to wealth creation, which ultimately leads to economic prosperity. The Central Bank of Nigeria (CBN), the country’s finance and economy hub, over time, designed a number of strategic policies and programmes aimed at upscaling Nigerians into financial inclusion. In 2012, on October 23 to be precise, CBN launched an innovative financial literacy programme, the National Financial Inclusion Strategy (NFIS). The strategy focuses on financial literacy as a core. The apex bank later followed up on the innovative project by inaugurating a Financial Inclusion Secretariat, financial inclusion steering committee; and several other projects geared towards onboarding hitherto financially excluded Nigerians into financial literacy zone. In fact, an entire division of the bank, Consumer Protection department, in collaboration with Financial Inclusion Secretariat, have been working collaboratively to achieve the financial inclusion target.
Financial literacy target
The Federal Government and by extension CBN set the first financial inclusion strategy in 2012. The CBN’s strategy was to achieve a financial inclusion rate of 80 per cent by 2020. A report by Enhancing Financial Innovation & Access (EFInA) had doubted Nigeria meeting 80 per cent target by 2020. EFInA hinged its doubt on a number of existential challenges. EFInA also stated in its report that the 80 per cent target that was set for 2020 may not be met until 2030 with the current stage of progress, noting that stubborn access gaps had persisted since 2008. “The main barriers to financial inclusion remain institutional exclusion, affordability, low awareness, limited access to banks, irregular or little income, unemployment, lack of trust, too much-required documentation, high maintenance charges, etc,” the report stated. Notwithstanding, CBN worked assiduously to achieve the target but it missed the 2020 target.
The government has a reviewed target. It plans to have 95 percent of its population financially included by 2024. The CBN in collaboration with the Ministry of Education resolved to develop a comprehensive curriculum to be integrated into the school syllabus. Financial literacy subjects are to be taught across all grades- primary, junior and senior secondary schools. These curriculums are to introduce financial topics at the early classes of students. The idea is that they are made to grasp and get familiar with the basic rudiments of financial literacy before attaining adulthood.
Strategies for 95% target
The country targeted 80 per cent financial inclusion by 2020. It fell short of the 80 per cent target. Nigeria is said to be within 70 percent financial inclusion band as of today. The bank has adopted January 2024 as new timeline for the 95 percent financial inclusion literacy landmark. Reflecting on the country’s landmark achievement in the area of financial literacy and inclusion last week in Abuja at the launch of sabiMoni E- learning platform, the CBN Governor, Mr Godwin Emefiele, noted the trajectories of Nigeria’s journey in financial literacy and inclusion. He spoke of efforts by the bank to deepen the level of financial literacy through the creation of various payment platforms. Emefiele said: “The USSD technology was brought into place primarily because we felt that it will be a deep enabler of our vulnerable people living in the nooks and crannies in Nigeria; those who we need to encourage to really get into the financial inclusion programs of the CBN.
“Indeed in 2017 or 2018 I think we are about a 48 or about 50 per cent inclusion rate when Bill and Melinda Gates came and Queen Maxima came. “We made a promise that by the end of 2022 we would have gone close to about 80 per cent financial inclusion. By the end of 2024 we would have achieved 95 per cent. “Unfortunately, where we are today is just below 70 per cent. We will do everything possible to hit the 95.per cent rate of financial inclusion landmark January 2024. “Having done everything that needed to be done, to resolve or deepen a few payment system infrastructures and I think I must commend our consumer protection department for taking on the issue even after you have put in all the infrastructure, it is not those who are already financially included.”
“All of us here are financially included because we are learned, we understand the basic tenets of financial literacy. I commend the financial consumer protection department because they continue to think along with management to see how we can educate those who are vulnerable, those who have not been able to embrace financial inclusion; those who are still financially excluded. “That is why I find this program extremely interesting because it’s not just about we who are here , but what we are doing here is training people who will become trainers; who will take what they have learnt, financial literacy to our weak and vulnerable and teach them about financial literacy because we believe through this program we should be able to deepen financial inclusion, increase the percentage and hopefully achieve the targets that we have set for ourselves,” CBN governor said.
e-learning platform
Financial literacy penetration is still at its lowest in Nigeria. It’s said to be within 64.1 percent to 70 per cent. The low rate is un- connected to shortage of skilled financial literacy trainers and limited avenues or channels for financial education. The bank is making deliberate efforts to bridge the gap. Last week, CBN took the financial literacy drive a notch higher. It unveiled sabiMoni E-learning platform. The bank explained the essence, objectives of SabiMONI conceived as an avenue for driving financial education amongst the target segment of the Nigerian population that would facilitate financial education programs for end beneficiaries. According to the bank, it will also support efforts at enhancing financial inclusion through digitalisation.
The platform is to serve as a channel for propagating digital financial literacy by ramping up adoption and usage of digital financial services. Speaking to the essence of e- learning platform, Mr. Emefiele noted one of the key drivers of financial Inclusion today as financial literacy. “It is a prerequisite for greater financial inclusion, which would lead to the stability of the financial system and ultimately economic growth and development. “Research has shown that the absence of or low levels of financial literacy constitutes an impediment to financial inclusion. In other words, the pace of financial inclusion is directly related to the level of financial literacy and financial capability (National Financial Literacy Framework).
“The EFInA Access to Finance Report indicated that Nigeria has all the infrastructure, it is not those who are already financially included.” “All of us here are financially included because we are learned, we understand the basic tenets of financial literacy. I commend the financial consumer protection department because they continue to think along with management to see how we can educate those who are vulnerable, those who have not been able to embrace financial inclusion; those who are still financially excluded.
“That is why I find this program extremely interesting because it’s not just about we who are here , but what we are doing here is training people who will become trainers; who will take what they have learnt, financial literacy to our weak and vulnerable and teach them about financial literacy because we believe through this program we should be able to deepen financial inclusion, increase the percentage and hopefully achieve the targets that we have set for ourselves,” CBN governor said. e-learning platform Financial literacy penetration is still at its lowest in Nigeria. It’s said to be within 64.1 percent to 70 per cent. The low rate is un- connected to shortage of skilled financial literacy trainers and limited avenues or channels for financial education.
The bank is making deliberate efforts to bridge the gap. Last week, CBN took the financial literacy drive a notch higher. It unveiled sabiMoni E-learning platform. The bank explained the essence, objectives of SabiMONI conceived as an avenue for driving financial education amongst the target segment of the Nigerian population that would facilitate financial education programs for end beneficiaries. According to the bank, it will also support efforts at enhancing financial inclusion through digitalisation. The platform is to serve as a channel for propagating digital financial literacy by ramping up adoption and usage of digital financial services. Speaking to the essence of e- learning platform, Mr. Emefiele noted one of the key drivers of financial Inclusion today as financial literacy.
“It is a prerequisite for greater financial inclusion, which would lead to the stability of the financial system and ultimately economic growth and development. “Research has shown that the absence of or low levels of financial literacy constitutes an impediment to financial inclusion. In other words, the pace of financial inclusion is directly related to the level of financial literacy and financial capability (National Financial Literacy Framework). “The EFInA Access to Finance Report indicated that Nigeria has a high rate of financial exclusion when compared to its peers in Sub- Saharan Africa (EFInA A2F 2020). It also identified low awareness levels or low financial literacy levels as constituting a major barrier to financial inclusion in Nigeria.
“It further indicates that a third of Nigerians have low financial capability levels. This is a direct implication of low financial literacy levels,” CBN governor said. He recalled steps taken to address the financial inclusion gaps. This, he said, included, National Financial Inclusion Strategy 2022, which identifies increasing adoption and usage of financial services in priority demographics comprising of the most vulnerable segments such as women, youth, MSMEs, rural dwellers and especially, the northern part of the country as well as expansion of digital financial services and platforms amongst its strategic priority areas. “To enable us to achieve these, we must take deliberate steps to upscale financial capability through financial education programs.
The shortage of skilled and experienced persons to drive financial education remains a major hindrance. “Interestingly, the National Financial Inclusion Strategy 2022 places high priority on financial and digital learning as a strategy that would enable the creation of a conducive environment for serving or ensuring the inclusion of the most excluded groups. no gain saying the fact that the SabiMONI Financial Literacy e-Learning Platform will enable us to drive financial education physically through the Certified Financial Literacy Trainers at the locations where it is most needed. “It will enable us to drive Digital Financial Literacy thereby boosting consumer confidence in the uptake and utilisation of digital financial services.
The SabiMONI portal will serve as a repository of information not only for learners but also for researchers in the most effective manner,” CBN governor said. Speaking at the occasion, Deputy Governor, Financial System Stability, Mrs. Aishah Ahmad, referred to SabiMONI portal as a fully digital national e-learning platform that provides a knowledge base for financial literacy. “It is aimed at providing individuals with the opportunity to be trained and to become Certified Financial Literacy Trainers (CFLT) through self-service. The platform is aimed at supporting our efforts towards ramping up the number of experts that can be used to drive financial education in the country and perhaps beyond.”
Last line
Months to CBN’ January 2024 deadline of attaining 95 percent financial inclusion landmark, there are still obvious gaps needing to be filled up. The end point looks pretty closer but farther in reality.
