Central Bank of Nigeria, Research Department.
Millennium Development Goals (MDGs), Financial services provision, Nigerian Payments and Settlement System (NIPSS), Financial services regulation, Central Bank of Nigeria.
Explanations from this paper revealed that financial sector development can make an important contribution to economic growth and poverty reduction. This is especially likely to be true in Nigeria, whose financial sectors is still developing, and without which economic development of the country as well as achievement of the MDGs may be constrained, even if other necessary conditions are met. It was discovered that the poor in the country, who are the target for the achievement of the MDGs often do not have access to ongoing, formal financial services, and are forced to rely instead on a narrow range of often risky and expensive, informal services. This constrains their ability to participate fully in markets, to increase their incomes and to contribute to economic growth. Thus, formal and semi-formal financial services channels, as mentioned in this paper, could provide inclusion opportunities to the poor (the target group in the MDGs) in Nigeria.
Aremu, J. (2011). The Millennium Development Goals: what role for the financial sector in Nigeria. Economic and Financial Review, 49(4), 91-131.