The Central Bank of Nigeria (CBN) has revealed that it is working to create a non-interest space for the development financing involvements.
The CBN Governor, Godwin Emefiele made the revelation yesterday while delivering the important address at the 2018 financial inclusion conference by Enhancing Financial Innovation and Access (EFInA) with the theme “the Business Case for Financial Inclusion”
Emefiele said “the interest free space will integrate a large sector of the population omitted due to their aversion for interest and interest-based products, into the financial system.”
The aim of the meeting is to scrutinise how to drive the uptake of financial products and services precisely targeted at the poor and at the same time provide stakeholders with the right incentives to create and support these products and services.
Emefiele who was represented by the Deputy Director, Development Finance Department, Osita Nwanisobi, said some assumptions in the original plan such as need to open more branches of banks and microfinance banks are no longer in trend due to technological advancement.
“It acknowledged women, youths, rural areas, northern region and MSMEs as the most omitted segments of the Nigerian population.
The usual high omission rates amongst the groups have been attributed to a number of factors, such as cultural barriers to uptake of financial products, difficulties in offering profitable services, worsening levels of unemployment and security challenges he added.
He further said the Bank’s obligation to supporting partnership with other important stakeholders, including government ministries, departments and agencies (MDAs) and development partners, to drive the financial inclusion in Nigeria to its logical assumption.