CBN raises concern about the unbanked

The Central Bank of Nigeria (CBN) will continue to treat the issue of financial education with all required seriousness until financial services become affordable and accessible to the unbanked.

Governor of the bank, Mr. Godwin Emefiele who spoke at the Financial Literacy Summit to commemorate the 2017 Global Money Week on Tuesday with the theme ‘Learn, Save, Earn’ said financial inclusion ensures that irrespective of income level, all individuals, households and businesses have access to appropriate and affordable financial services products.

Represented by Director, Human Resources, Mr. Edward Lamtek, CBN’s Emefiele said, “We are concerned about the level of financial inclusion because individuals and households lacking adequate access to a full range of responsibly delivered, affordable and convenient formal financial services would be severely constrained in participating fully in the economy.”

“This will imply that the financial sector would be constrained in terms of expansion and intermediation as the disposable income in the hands of excluded persons could constitute greater savings and a wider deposit base for banks and other financial institutions.”

“To address our financial inclusion challenges, we have continued to implement various initiatives to ensure that as much of the eligible target population has the opportunity to access a variety of financial services ranging from credit, savings and payments, remittances, pensions, capital markets and insurance services,” he said.

According to him, for consumers to fully utilise these services, it was important that they increase their financial literacy skills, complemented by consumer protection measures of the CBN.

The CBN boss expressed happiness over the approval of the Financial Literacy Curriculum at basic and senior secondary schools level, which would commence at the beginning of the 2017/2018 academic year.

He said that the apex bank was currently developing a Teacher’s Guide to aid the teaching of financial education in formal school system.

“This I hope will be one of my legacies to the youth and to the country as the CBN Governor,’’.

Also speaking, Director, Consumer Protection Department of the bank, Hajiya Umma Dutse emphasised CBN’s commitment to ensure financial inclusion, through continued financial education of consumers.

“It is only when the vast majority of the Nigerian population is financially literate that they can participate and take up opportunities from the formal financial system, thereby contributing to financial stability.”

“Financial education is no doubt crucial to the future and stability of our financial system,” she said.

Scores of primary and junior secondary school pupils from different parts of the Federal Capital Territory (FCT) witnessed the event, which featured a debate on importance of savings, cultural display and a tour of the Currency Museum cited inside the headquarters of the bank.