Women, northern inclusion key to closing financial inclusion gap

Olu Akanmu, executive in Residence at the Lagos Business School Tech Leap Initiative, has stated that addressing the barriers hindering the financial inclusion of women and populations in northern Nigeria is critical to closing the country’s overall financial inclusion gap.

He said this in a presentation at the IFC DFS Knowledge Exchange, urging the refocus of national financial inclusion efforts where they matter most. Reports say formal financial inclusion in Nigeria has risen to 64 percent, but persistent gaps remain in two critical areas, which are the northern region and among women.

“If we fix the North and inclusion challenges of women, we will fix the challenge of financial inclusion,” Akanmu stated.

According to the EFInA Access to Financial Services (A2F) 2023 report, economic exclusion remains the biggest barrier to owning a financial account, especially for women, who are disproportionately affected by poverty, cultural barriers, and low digital financial literacy.

Despite gains in mobile money and agent networks, large exclusion challenges remain. The gender and regional divide must be urgently tackled,” the report stated.

Akanmu identified five major issues shaping Nigeria’s financial inclusion landscape, which include economic exclusion, particularly in poor and informal economies, last-mile access, especially in rural communities, and the gap between digital identity and account ownership.

He also highlighted culture and trust, which affect uptake among women and conservative regions, and expansion beyond payments into credit, savings, pensions, and insurance.

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These factors are deeply regional and gendered, with the north and female populations suffering the highest rates of exclusion, according to him.

Reports say 53.9 percent of Nigerians use financial service agents for digital and cash-based services. However, this access is uneven as there’s a 12-point gender gap in agent usage, tied to mobility, cultural norms, and limited digital financial literacy among women.

While agent networks are a vital gateway, Akanmu warns that presence alone isn’t enough. “Financial services must be trusted, relevant, and tailored to local realities to drive impact.”

Another concern is the widening gap between digital identity ownership and financial account access as millions of Nigerians, especially women in rural areas, hold a National Identification Number (NIN) but remain outside the formal financial system.

To bridge the identity gap, Akanmu urged the linking of identity to financial inclusion.

“Without linking identity to functional financial access, we risk leaving behind the very people these systems were built to help,” he said.

Akanmu noted the need for a more targeted and inclusive approach. “Expand agent networks deeper into rural and northern Nigeria, design culturally sensitive financial products and education initiatives.

“Reduce onboarding costs and improve economic opportunities for women and integrate digital identity with account opening, especially through cash transfer programs,” he stated.