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© 2023 International Monetary Fund
SIP/2023/020
IMF Selected Issues Paper
African Department
Nigeria—Fostering Financial Inclusion through Digital Financial Services
Prepared by Torsten Wezel and Jack Ree*
Authorized for distribution by Jesmin Rahman
January 2023
IMF Selected Issues Papers are prepared by IMF staff as background documentation for periodic consultations with member countries. It is based on the information available at the time it was completed on January 12, 2023. This paper is also published separately as IMF Country Report No 2023/094.
ABSTRACT: Financial inclusion in Nigeria has had undeniable successes, with the onboarding of residents to the banking sector consistently progressing. But the overall exclusion rates continue to exceed official targets, not least due to low financial literacy. Going forward, Nigeria’s financial inclusion strategy should more systematically leverage rapidly developing digital instruments. Uptake of digital financial services, notably mobile money, is still lower than in peer countries, and overcoming this would require improving digital financial literacy, upgrading digital infrastructure, and promoting incubation and sound practices of fintech firms. Nigeria’s CBDC also has an enabling potential if accompanied by a comprehensive package of supportive policies.
RECOMMENDED CITATION: Torsten Wezel and Jack Joo K. Ree, 2023, “Nigeria—Fostering Financial Inclusion through Digital Financial Services”, IMF Selected Issues Paper
| JEL Classification Numbers: | E42, E58, G28, G53 |
| Keywords: | Central Bank Digital Currency, digital financial services, financial inclusion, financial literacy, mobile money |
| Author’s E-Mail Address: | twezel@imf.org, jree@imf.org |
| JEL Classification Numbers: | E42, E58, G28, G53 |
| Keywords: | Central Bank Digital Currency, digital financial services, financial inclusion, financial literacy, mobile money |
| Author’s E-Mail Address: | twezel@imf.org, jree@imf.org |
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SELECTED ISSUES PAPERS
Nigeria—Fostering Financial Inclusion through Digital Financial Services
Nigeria