An Analysis of Financial Inclusion in Nigerian Banks: From the Prospects and Challenges Perspective

Abstract

Financial inclusion has received increased attention as the panacea to improving the economic livelihood of unbanked and the under banked. The study aimed to identify the potential benefits and obstacles to financial inclusion in the Nigerian Banking system. Relying on various journals and literature contents, this article utilised narrative analysis to highlight different benefits and challenges of financial inclusion in Nigerian banks. Leveraging on convenience sampling, interview sessions were conducted focusing on a bank customer, a banker and an economist. Findings revealed that amongst others, the sustained review and enacting of different laws, guidelines and regulations aimed at ensuring a "future ready” Nigerian banking system is the right step towards a high financial inclusion level in Nigeria. However, despite these predictions, the low financial literacy levels (among others) were identified as obstacles affecting the implementation of financial inclusion in Nigeria. The paper concludes by proffering various recommendations such as implementing an enabling regulatory environment, which is critical to ensuring the benefits that can accrue from an upsurge in Nigeria's financial inclusion level.