Financial inclusion, Economic development, Africa, Financial institution


The operations of financial systems are crucial to people’s savings, credit, payment and risk management needs. More importantly, the inclusiveness of this system tends to benefit the poor and other disadvantaged groups in the society (Demirguckunt and Klapper, 2012). In the definition of the Centre for Financial Inclusion, “Full Financial Inclusion is a state in which all people who can use them have access to a suite of quality financial services, provided at affordable prices, in a convenient manner, and with dignity for the client” (Gardeva and Rynne, 2011). This entails building a financial system that serves as many people as possible (AFI, 2010). Increased savings can be engendered by including the poor and disadvantaged groups in the formal financial system. Given their large numbers, this small saving group represents a means of financial diversification which can enhance financial stability and economic growth of a country. However, when financial development is not entirely inclusive; especially when it tilts heavily towards the wealthy (Cull and Demirguc-Kunt, 2012), it may dampen economic growth. This paper, therefore, identifies different measures of financial inclusion and their strengths and goes on to discuss results on their application to measuring the degree of financial inclusion in Nigeria. The draws lessons on how other countries have expanded their financial inclusion and measurement strategies. Each of these objectives is therefore treated in separate sections of the paper.

Author Bio

The author Prof. Ajakaite O. David is the Executive Chairman, African Centre for Shared Development Capacity Building, Ibadan And Afolabi Olowookere, University of Ibadan.

Publication Title

CBN Bullion


3 - 1


36 - 37

Included in

Finance Commons



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