The Central Bank of Nigeria (CBN), the nation’s financial regulatory authority, recently announced plans to implement a financial literacy framework aimed at enhancing financial inclusion of unbanked people by the first quarter of 2013. CBN had in June reported that the proposed implementation of the National Financial Inclusion Strategy would include efforts to reduce the number of Nigerians who have no access to financial services from 46 percent to 20 percent by 2020. The effort is aimed at developing the skills and confidence of those new to financial services to help them become more aware of financial risks and opportunities.
The Director of the CBN Consumer Protection Office (CPO), Mrs Umma Dutse, reportedly said that this financial literacy framework was necessitated by complaints from consumers of financial products. Since the creation of the CPO, over 3,000 complaints have been received and treated, giving rise to bank refunds of over NGN 6 billion (USD 38 billion) as of October 2012.
CBN in collaboration with other financial service regulators has promoted the Nigerian Financial Ombudsman Bill (NOFB), which is currently before the National Assembly. NFOB is the legal framework for the establishment of Office of the Financial Services Ombudsman (OFSO), which would be charged with responsibility for resolving financial and related disputes in the financial sector.
By Chioma Okwudiafor, Research Associate
About Central Bank of Nigeria The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government”. CBN has 37 branches across Nigeria and staff strength of 5995. As of November 2011, CBN reports total assets of NGN 9.77 trillion (USD 61.9 billion).
Sources and Additional Resources:
Leadership NG Story: CBN Says it will Implement Financial Literacy Framework in Q1, 2013
http://leadership.ng/nga/articles/40569/2012/11/20/cbn_says_it_will_implement_financial_literacy_framework_q1_2013.html
MicroCapital Story: November 12, 2012, MICROCAPITAL BRIEF: To Boost Usage, Mobile Money Service Providers in Nigeria Told To Focus on the Unbanked
https://www.microcapital.org/microcapital-brief-to-boost-usage-mobile-money-service-providers-in-nigeria-told-to-focus-on-the-unbanked/
MicroCapital Story: May 28, 2012, “MICROCAPITAL BRIEF: Central Bank of Nigeria (CBN) Financial Inclusion Strategy Includes Goal of 63m Savings Accounts by 2020”
https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-financial-inclusion-strategy-includes-goal-of-63m-savings-accounts-by-2020/
MicroCapital Universe Profile: Central Bank of Nigeria
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
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