N26.17 trillion was the total figure of unbanked money in Nigeria from January to November 2021. This figure was the amount of money circulating in the Nigerian economy for various transactions that is not accounted for by the country’s banking system.
This means a total of N26.17 trillion in transactions happened outside of traditional banking systems in 2021.
Poverty is one of the factors that accounts for unbanked money in circulation with issues such as cost of operating a bank account associated with the various charges deducted for services rendered. Nigeria has also long faced the challenge of financial inclusion for its teeming population especially in rural areas. Although there is marked increase in financially included citizens, Nigeria fell short of its National Financial Inclusion Strategy targets for 2020, reaching 51% instead of the projected 70%. About 38 million adults in Nigeria remain completely financially excluded.
The volume of unbanked Nigerians presents opportunities for both traditional banks and fintech companies, how they take advantage of this opportunity among other factors, will determine Nigeria’s financial inclusion outcomes in 2022.