Bridging women exclusion gap through appropriate policies, initiatives

 

Mobile money transfer services have become arguably the single most effective contributor to global financial inclusion initiatives, and, particularly in developing countries, have facilitated access to cheap

and reliable financial services for an ever-increasing formerly unbanked segment of the population.

Favourable regulatory environments and supervisory good practices have enabled significant innovation in mobile transfer services in various countries, thereby contributing to unprecedented success in financial inclusion initiatives.

Indeed these have transformed into wider digital financial services ecosystems offering savings, insurance, local and international money transfers, payments, and credit services on mobile money platforms to both individuals and corporate entities.

However, despite this success, achieving 100 per cent financial inclusion where all have access to financial services is as yet an unfulfilled dream in many developing countries, including Nigeria.

According to the Global Financial Inclusion Index, the proportion of adults around the world with access to formal financial services rose from 51 per cent to 62 per cent in only three years (2011 to 2014). By 2017, it had reached 69 per cent.

Despite this general progress, more than a billion women worldwide are still excluded from formal financial services, and the gender gap has not budged since 2011. This is in spite of the unique and significant market opportunity that women constitute in Nigeria.

According to data by the Enhancing Financial Innovations and Access (EFInA), 44.1 per cent of the total excluded adult population in Africa’s most populous nation are men, while 55.9 per cent are women; leaving the gender gap at 11.8 percentage points.

Further assessment of women’s financial inclusion in Nigeria conducted by the same group in 2019 showed that Nigeria faces a particularly significant and growing gender gap in financial inclusion.

The report indicated that the gender gap in Nigeria represents a major issue to be resolved if the country is to achieve the targets it set in its National Financial Inclusion Strategy (NFIS).

This requires responding creatively to the barriers and social norms that may prevent women from harnessing the potential financial inclusion to improve their lives.