Kaduna leads in financial inclusion

By AbdulGafar Alabelewe, Kaduna

Kaduna State is said to have the highest rate of financial inclusion in the Northwest. However, the state government seeks to expand financial inclusion as an accelerator of economic growth.

Speaking at the presentation of findings of the EFInA survey of financial inclusion in Kaduna State yesterday, Governor Nasir El-Rufai noted that “it highlights the significant market opportunity for financial service providers to address the financial needs of adults in Kaduna.”

Represented by the Deputy Governor, Dr Hadiza Balarabe, El Rufai disclosed that Kaduna State government’s policy encourages opportunities to bring financial inclusion to the 55 per cent of adults that are currently excluded.

The survey found that 62 per cent of adults in Kaduna State do not use any regulated financial services and most of them are women, people in rural areas, farmers and micro-entrepreneurs.

The governor, who said the government seeks to reverse these figures, highlighted the policy steps being taken to expand financial inclusion, including a roadmap and blueprint for the adoption of state-wide digital payment infrastructure, with the support of the Bill Gates Foundation.

According to him, Kaduna State is also partnering with the United Bank for Africa (UBA) to improve financial access points in all the 23 local government areas.

El-Rufai also explained that his administration appreciates the strong impact that access to telecommunications services has on financial inclusion, adding that “Kaduna State government is working in partnership with IHS Towers to improve and provide mobile network (voice and data) in 42 blind spots across the state.”

The governor disclosed that “about half of the installations in this project are already done, and the rest are scheduled for completion by the end of September 2021.

“The adoption of technology extends to official payments and the registration of residents. Aside from digitising payments, Kaduna State is digitising identity, capturing the biometric details of over the 3.5m residents in the database of the Kaduna State Residents Registration Agency (KADRRA).

“The goal is for KADRRA to reach 9 million residents, about 90 per cent enrollment of residents by December 2022,” he further said.

Chief Executive of EFInA Ashley Immanuel said “this Kaduna State Deep Dive Survey is the first time that EFInA has conducted such detailed financial inclusion research at the state level.

“The data shows that, while there is work to do to improve financial inclusion and the financial health of adults in Kaduna state, there is also tremendous opportunity to do so by expanding the reach of relevant, affordable digital financial services and agent networks.

“We are pleased to provide this data as a resource for stakeholders such as government, financial service providers, development partners and others to develop targeted strategies to drive inclusion in Kaduna State,’’ she added.

Among the survey findings are that “only one per cent of adults in Kaduna State are insured, but 0.7 million uninsured adults say they would be interested in micro-insurance. While only 33 per cent of adults in Kaduna State are banked, two million unbanked adults in the state own mobile phones and could be reached with mobile money.”