A significant portion of Nigerians without access to formal banking services, around 25%, have highlighted trust issues and high service fees as key obstacles preventing them from integrating into the formal financial system. This insight comes from the latest Global Findex Database 2025 report by the World Bank.
The report indicates that these concerns are particularly related to the perceived security of keeping funds in an account, as well as the unpredictable nature of banking charges, such as monthly account maintenance fees, transaction costs, and withdrawal fees.
In the survey, the World Bank noted a steady increase in the number of Nigerian adults with financial accounts. As of 2024, 63% of Nigerian adults were reported to have some form of financial account, compared to just 45% in 2022. However, the number of unbanked individuals remains substantial, particularly in rural areas, where geographical access and financial literacy continue to present challenges.
“Trust in financial institutions, coupled with the perceived high costs, is a major deterrent,” the report states. It goes on to suggest that increasing financial literacy and implementing transparent pricing models could play a crucial role in boosting inclusion.
The World Bank’s report also highlighted the growing role of mobile money accounts in Africa, though Nigeria and Ethiopia remain exceptions, where traditional banks continue to dominate the financial landscape. Despite high mobile phone penetration in Nigeria—84% of adults own a mobile phone—the use of mobile financial services is still limited due to the perceived cost and documentation requirements.
In addition to trust and high charges, other factors cited for financial exclusion include lack of money, reliance on family members’ accounts, and the distance to the nearest bank or mobile money agent.
These barriers highlight the need for more affordable and accessible financial services, including the potential for mobile money platforms to bridge the gap for underserved populations. As digital payment methods become increasingly widespread, ensuring the affordability and transparency of these services could unlock financial access for millions of Nigerians.
With mobile phone ownership at 84%, and internet usage at 38%, the report signals an opportunity for financial services to tap into this base by offering low-cost solutions that address these critical concerns.
