Financial inclusion as the provision of a broad range of high quality financial
products such as savings, credit, insurance, payments and pensions, which are relevant,
appropriate and affordable for the entire adult population especially the low income segments of the economy. This study critically examines the sustainability of financial inclusion to rural dwellers in Nigeria using descriptive study and content analysis. The study observed that the sustainability of financial inclusion to rural dwellers in Nigeria remains the mainstream for economic growth in any country. The implication of this study is that economy cannot grow fast without proper implementation of financial inclusion to rural areas in Nigeria. The study recommended that the promotion of collaboration between Deposit Money Banks (DMBs), Microfinance Banks (MFBs) and Communication services providers for enhanced intermediation of financial services should be encouraged; there is need to educate rural dwellers on the importance of banking as it would facilitate the success of CBN financial inclusion policy and that since some of the rural dwellers preferred to keep money under their pillows at home, there should be proper enlightenment to change their orientation on financial inclusion in Nigeria.
KEYWORDS: Financial Inclusion, Rural Dweller, Economic Growth, Savings, Credit.
INTRODUCTION
The issue of access to financial services for the rural dwellers in every country in terms of development, poverty reduction, decent work and economic empowerment has received growing attention from scholars and policy makers as it concern financial inclusion. In Banking and Finance area, financial inclusion can be seen as the delivery of financial services at affordable costs to some disadvantages and low income segment of the economy, in contrast to financial exclusion where those services are not available or affordable. Enhancing Financial Innovation and Access (EFInA) (2013) define financial inclusion as the provision of a broad range of high quality financial products such as savings, credit, insurance, payments and pensions, which are relevant, appropriate and affordable for the entire adult population especially the low income segments of the economy. Financial Access Initiative (FAI) has estimated that 2.5 billion adults, just over half of the world’s populat ion, do not use formal financial services to save or borrow. 62% of adults, nearly 2.2 billion, living in Asia, Africa, Latin Africa and Middle East are un-served. A little more than 800 million live on less than $5 per day. Nigeria is not exception with a large population of financially un-served people put at 46.3% in 2010 (EFInA, 2010 in Paul, 2013). In Nigeria, there are many reasons why unbanked and lack of access to financial services especially the rural dwellers prevail. The result of the EFInA to Financial Services in Nigeria 2012 survey showed that 34.9 million adults representing 39.7% of the adult population were financial excluded. This means that only 28.6 million adults were banked representing 32.5% of the adult population (EFInA, 2013).
Financial Inclusion is critical to the attainment of poverty reduction, removal of barriers to
economic participation of rural dwellers, women, youths and those at the bottom of poverty.
It is also focused on improving financial education for rural dwellers. Financial Inclusion will
help pave way for sustainable economic growth by providing financial services to individuals
and communities that traditionally have limited or no access to the formal financial sector as
evidenced in Nigerian rural dwellers. Meanwhile, this study is meant to evaluate the
sustainability of financial inclusion on rural dwellers in Nigeria.
