Dormant Accounts Rise as Zenith, Access, UBA activate 102 Million Bank Accounts in 2024
- The Nigerian banking industry had 311.65 million active accounts as of December 2024
- Between January to December 2024 roughly 102,337,506 new accounts were activated
- There were 202.6 million active bank accounts in the country at the end of 2023, according to NIBSS data
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
As of December 2024, there were 311.65 million active accounts in the Nigerian banking sector, according to the most recent data from the Nigeria Inter-Bank Settlement sector.
Source: UGC
Between January 2024, when the number was 209,311,667, and December 2024, when it reached 311,649,173, there was a 48.89% increase. Essentially, during that time, roughly 102,337,506 new accounts were activated.
At the end of 2023, there were 202.6 million active bank accounts nationwide, according to earlier NIBSS data.
Additionally, the statistics showed that between January and December 2024, the number of dormant or inactive accounts climbed to 19,697,125, representing a roughly 6.52% increase.
The volume of closed accounts also grew, reaching 25,486,054 after increasing by 17.40%, or 3,777,648, between January and December 2024.
The World Bank states that as a transaction account enables people to send, receive, and store money, it is the first step toward greater financial inclusion, Champions news reported.
According to the bank, as of 2021, there were 45% more Nigerians having accounts at regulated financial institutions such banks, credit unions, microfinance organizations, post offices, or mobile money service providers.
The World Bank said Nigeria saw a rise in account ownership from 30% to 45% within the same time, whereas the global average rose from 51% in 2011 to 76% in 2021.
To promote financial inclusion in the nation, the Central Bank of Nigeria approved the National Financial Inclusion Strategy in 2012. The strategy selected areas of focus, set goals, identified key performance indicators and established the implementation structure.
It also articulated the supply-side, demand-side, and regulatory impediments to financial inclusion. Four core areas—agency banking, mobile banking/mobile payments, linkage models, and client empowerment—formed the foundation of the NFIS.
The National Financial Literacy Strategy, agent banking rules, consumer protection, and tiered Know Your Customer requirements were determined to be the four priority areas for the establishment of guidelines and frameworks.
Even while loopholes still exist, more Nigerians are now enrolled in the official banking system, according to the 2023 EFInA Access to Finance Survey.
The percentage of Nigerians who were financially included increased from 68% in 2020 to 74% in 2023, although 26% were still financially excluded.
“Despite the growth in access, certain demographic gaps continue to persist in Nigeria. For instance, the gender gap: growth in women’s financial inclusion from 60 per cent in 2020 to 70 per cent in 2023 despite an increase in the gender gap from eight per cent recorded in 2020 to nine per cent in 2023. Urban-rural gap: decrease in the gap from 24 per cent recorded in 2020 to 20 per cent in 2023. Youth (18-35): 71 percent financial inclusion recorded in 2023. Northern Nigeria: despite growing access, including significant gains in the North-East and North-West, all states in the North-East report exclusion levels above the national average,” the report said.
Olayemi Cardoso, the governor of the CBN, stated that financial inclusion can significantly boost economic growth, especially by empowering women, small and medium-sized businesses, and other vulnerable groups of people.
Through frameworks designed to close gender disparities and offer regulatory support for digital platforms that improve access to financial services, Cardoso highlighted the CBN's noteworthy advancements in promoting financial inclusion for disadvantaged populations.
He added that through targeted financial literacy programs, the CBN was dedicated to enabling young Nigerians to achieve financial independence, promoting entrepreneurship, and igniting economic growth throughout the nation.
Noting that interoperable payment platforms have allowed millions of Nigerians to send payments, save, and access credit even without traditional bank accounts, he emphasized that the adoption of digital payment channels using mobile technology has been a transformative tool for financial inclusion.
Nigeria's increasing mobile phone p*netration offers a unique opportunity to expand access to financial services.
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Legit.ng reported that Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has expressed worry about the susceptibility of inactive bank accounts to fraudulent activity.
Addressing journalists after the two-day Monetary Policy Committee (MPC) meeting, Cardoso stated that the benchmark interest rate had increased by 50 basis points to 26.75%.
He clarified that accounts that are left idle for long periods of time are frequently easy targets for identity theft and unauthorised access by scammers.
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Source: Legit.ng
