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Nigeria’s Financial Exclusion Falls to 21% — Report
A new report by Enhancing Financial Inclusion and Advancement (EFInA) has found that Nigeria’s financial exclusion rate has fallen to 21 per cent. However, the remaining gap is increasingly concentrated among people with fewer economic resources.
The finding is contained in the 2026 Access to Financial Services in Nigeria (A2F) Survey launched by EFInA in Abuja on Wednesday.
According to the report, 53 per cent of adults in the poorest wealth quintile remained financially excluded, compared with just 1 per cent in the richest quintile.
It said almost half of financially excluded Nigerians were in the poorest 20 per cent of the population, highlighting the growing link between poverty and exclusion from formal financial services.
EFInA said the findings showed that although more Nigerians were entering and using the formal financial system, greater participation was not translating into improved financial outcomes at the same pace.
The 2026 survey examined financial inclusion beyond access, focusing on financial health, resilience, consumer experience, economic activity and Nigerians’ ability to manage financial shocks.
The A2F Survey has been conducted biennially since 2008 and is one of Nigeria’s major sources of demand-side data on financial inclusion. It tracks how Nigerians use formal and informal financial services to meet daily needs, plan for emergencies, protect their futures and cope with financial pressures.
According to EFInA, the 2026 edition follows previous rounds conducted in 2008, 2010, 2012, 2014, 2016, 2018, 2020 and 2023, providing more than 17 years of longitudinal data.
The organisation said the survey captures financial and non-financial data that have served as a source of information for financial service providers, development organisations, policymakers, and regulators, including the Central Bank of Nigeria (CBN), the National Insurance Commission (NAICOM), and the National Pension Commission.
Methodology
During her presentation of the report findings on Wednesday, Foyinsolami Akinjayeju, Chief Executive Officer of EFInA, said that for the 2026 survey, they had the support of the National Bureau of Statistics in designing it.
She explained that, for the most part, the sampling of respondents was based on equal representation across states.
“Most states have the same sample size, for the most part. In some cases, we adjusted it slightly to account for design effects. This allows for headline indicators to be available at the state, regional and national levels,” she said
Mrs Akinjayeju said they surveyed adults aged 18 years and above and achieved a 98 per cent response rate.
“Our target was 18,950 respondents, and we were able to interview 18,679. So, that’s about a 98 per cent response rate,” she noted, explaining that the results show what is currently obtainable because the listing and data collection were done between April and June, with supervision from the National Bureau of Statistics.
She said the questionnaire was in English but had been translated into the major languages in Nigeria and into Pidgin English.
Digital finance expands
The survey found a significant increase in the use of digital financial services, with digital finance usage rising from about 47 per cent in 2023 to 64 per cent in 2026.
Mobile money use also more than tripled, rising from 12 per cent in 2023 to 38 per cent in 2026.
EFInA said Nigerians were increasingly using mobile money for everyday transactions, including bill payments, purchases and receiving money, in addition to transfers.
However, cash and financial agents remained important, while access to smartphones, connectivity and digital skills continued to vary across population groups.
For instance, 92 per cent of agricultural workers reported that they still received their payments in cash.
EFInA said the findings suggested that a completely digital-only approach to financial inclusion would be premature.
Savings rise, but credit and insurance lag
The survey also showed that formal savings increased from 38 per cent in 2023 to 53 per cent in 2026.
However, formal credit remained at 10 per cent, while insurance penetration stood at five per cent and pension participation at about nine per cent.
EFInA said the figures pointed to a financial system that was helping Nigerians move and store money more effectively than it was helping them finance livelihoods or transfer risks.
“This matters because financial inclusion is increasingly about what people can achieve with financial services, not simply whether they have access to them,” EFInA said.
The survey also highlighted persistent weaknesses in financial resilience. According to the findings, 61 per cent of Nigerian adults remained in severe liquidity distress, while debt stress increased.
Among adults who experienced financial shocks, 71.6 per cent relied on fragile or erosive coping mechanisms, compared with only 13.8 per cent who used protective or adaptive coping mechanisms.
EFInA said fragile coping mechanisms could include responses that help households survive immediate emergencies but weaken their ability to withstand future shocks.
The findings, therefore, raise questions about whether financial services are helping Nigerians recover from shocks without leaving them more vulnerable.
Farmers face financial vulnerability
The survey found that 51.2 per cent of farmers experienced a financial or economic shock.
Among farmers who experienced shocks, 52.2 per cent relied on erosive coping mechanisms, while 76 per cent experienced residual distress.
EFInA said the findings connected agricultural finance more directly with savings, credit, insurance, climate adaptation and the protection of livelihoods.
The survey also examined financial inclusion among women, business owners and young Nigerians.
Formal financial inclusion among women business owners increased from 67.5 per cent to 76.3 per cent, while inclusion among women farmers rose from 42.7 per cent to 53.6 per cent.
However, exclusion among dependent women increased to 52.2 per cent.
EFInA said the findings demonstrated why women should not be treated as a single homogeneous group when designing financial inclusion policies and products.
Consumer experience remains a concern
The survey also examined the quality of consumers’ experiences with financial service providers, including communication, customer support, service timeliness and fraud education.
According to EFInA, the findings showed that greater financial participation did not automatically guarantee an equitable customer experience.
EFInA’s boss said demand-side evidence was critical to understanding how Nigerians interact with the financial system.
“Demand-side evidence at this scale is national economic infrastructure. Nine rounds have given Nigeria a continuous record of how households behave through reform, shock and recovery,” Ms Akinjayeju said.
She said the latest survey went further by examining what financial inclusion was delivering in economic terms.
“I expect regulators, providers and partners to hold their own targets against what it shows,” she said.
EFInA said the A2F 2026 Survey was intended to shift the financial inclusion conversation from simply measuring access to examining what access enables Nigerians to achieve.
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The Auditor-General of the Federation flagged an alleged ₦345.5 million duplicate payment by the Federal Ministry of Communications, Innovation, and Digital Economy to a contractor handling the Abuja ICT Park project.
The finding was contained in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments and Agencies of the Federal Government for the year ended 31 December 2024.
The special audit of the communication ministry covered the period from 1 January to 31 December 2021 and raised 14 issues concerning the planning, funding, procurement and implementation of the ICT Park project.
At the time the project was being implemented, Isa Ali Pantami, who was appointed by former President Muhammadu Buhari, served as Minister of Communications and Digital Economy from 2019 to 2023. He was succeeded by Bosun Tijani, who was appointed by President Bola Tinubu.
₦345.5 million duplicate payment
In Issue 13 of the findings, titled “Loss of Fund Due to Duplicated Payments to Contractor,” the Auditor-General said the ministry processed and approved two separate payments of ₦345,499,262.74 each as the third tranche of the 15 per cent mobilisation advance to the contractor.
The payment was intended to establish the Information and Communication Technology (ICT) Park, Abuja.
The Permanent Secretary approved the first payment on 19 January 2022 through payment voucher No. FMCDE/CAP/606/2021 dated 24 January 2022.
The same accounting officer approved the second payment on 17 January 2023 through payment voucher No. FMCDE/CAP/149/2022 dated 8 February 2023.
The report said the two paid vouchers had identical contract references, amounts, and narrative descriptions, which it said indicated duplicate payment.
It added that no record showed the first payment had been reversed, adjusted, or treated as an accounting error.
“There was also no journal entry, refund, or internal memo linking the 2023 approval to any prior transactions. These omissions demonstrate a failure of supervisory review, record reconciliation, and payment verification within the Ministry,” the findings stated.
The Finance and Accounts Department also failed to justify the repeated authorisation or the lack of reconciliation between the Cash Book and Vote Book, according to the report.
The findings said the contractor, while claiming it received only one payment in 2023, submitted a bank statement that excluded the critical period between 2 January 2022 and 8 February 2023, preventing independent verification of its claim.
The audit said the payments posed risks of fund diversion and loss of public funds, attributing this to weaknesses in the ministry’s internal control system.
The audit said the ministry’s management did not respond to the alleged duplicate payment under the contract.
The Auditor-General recommended that ₦345.499 million be recovered and remitted to the Treasury, and that evidence of remittance be forwarded to the Public Accounts Committee of the National Assembly.
₦447.67m from undisclosed funding sources
In Issue 11, the auditors questioned ₦447.67 million in payments to the ICT Park contractor, which they said could not be traced to the Government Integrated Financial Management Information System (GIFMIS).
The amount comprised ₦102,166,730 and ₦345,499,262.74 paid to the contractor, vide paid vouchers, Ref. No. FMCDE/CAP/061/2021 and FCMDE/606/2022 on 11 June 2021 and 19 February 2022, respectively.
According to the report, the payments appeared in the cash book. The contractor acknowledged them in the progress report and bank statement, but they did not appear in GIFMIS records, indicating they were processed off the system.
The audit said officials in the ministry’s Finance and Accounts Department could not explain the existence or authorisation of the alternative funding sources.
The report said the ministry also failed to provide documentation showing lawful appropriation, supplementary approval, or an external funding agreement for the payments.
The audit said the action posed a risk of misappropriation of funds and diversion of public property.
It said the ministry’s management did not respond to questions about the history of the payments in the GIFMIS records.
The Auditor-General recommended recovering and remitting ₦447.67 million to the Treasury, with sanctions under paragraphs 3106 and 3129 of the Financial Regulations (2009) if the ministry fails to comply.
₦396.65 million project funds used for unrelated items
In Issue 9, the findings showed that N396.65 million from the ICT Park project fund was used to pay for consultancy services, office consumables, furniture, and stationery printing.
The audit said approvals had been processed for consultancy services relating to the ICT Park. Still, payments were made to unrelated suppliers for consumables and office furniture that were not contained in the project’s Bill of Quantities.
The report said this reduced funds meant for the mobilisation and execution of the ICT Park project.
It also said the ministry failed to provide evidence of approval for the virement from the Minister of Finance, Budget and National Planning and the National Assembly.
It said the actions posed a risk of misappropriation of funds and undue delay in completion of the project, noting that the ministry failed to respond to the question on the use of the project funds for unrelated items.
The Auditor-General recommended recovering and remitting ₦396.655 million to the Treasury, with sanctions under paragraphs 3106 and 3129 of the Financial Regulations (2009) if the ministry fails to comply.
₦1.85bn paid without performance bond
In Issue 10, the auditors also found that N1.848 billion was paid to the contractor without securing a valid Performance Bond.
The report said the Bureau of Public Procurement had directed in December 2020 that a minimum 10 per cent Performance Bond be secured for major contracts before payment of mobilisation fees.
However, the ministry first released ₦1.348 billion in mobilisation payments between March 2021 and February 2023 without obtaining the required bond.
The report said that nearly three years after the contract award, the contractor submitted a commitment letter dated 29 December 2023, promising to furnish a Performance Bond upon receiving an additional N500 million. This amounts to ₦1.848 billion.
It said the actions exposed public funds to loss, noting that the ministry failed to respond to the question on the payment.
The Auditor-General recommended recovering and remitting ₦1.848 billion to the Treasury, and imposing sanctions under paragraphs 3106 and 3129 of the Financial Regulations (2009) if the ministry fails to comply.
₦500 million paid without interim performance certificate
In Issue 12, the Auditor-General said the ministry released an additional ₦500 million to the contractor on 29 December 2023 without an Interim Performance Certificate or verified progress report.
The report said the payment was made after the contractor received the 15 per cent mobilisation fee.
Instead of an Interim Performance Certificate, the ministry relied on a commitment letter from the contractor promising to provide project vehicles and undertake overseas technical trips upon receipt of the additional funds.
The audit said the actions posed a risk of diverting public funds and losing government funds. It said that the ministry failed to respond to the question on the payment.
The Auditor-General recommended recovering and remitting N500 million to the Treasury and imposing sanctions under paragraph 3106 of the Financial Regulations (2009) if the ministry fails to comply.
Premature foreign trips of ₦90 million
In Issue 8, the auditors questioned a ₦90 million provisional sum for foreign trips to inspect technical equipment for the ICT Park.
According to the findings, the sum of ₦90 million was included and described as “Allow a provisional sum of N90 million to cater for Client’s and Consultants’ representatives for foreign trips for the inspection of technical equipment to be deployed for the project,” in the priced Bill of Quantities (BOQ) for the contract for the ICT Park project, with a contract sum of ₦8.984 billion.
The report said the expenditure was being planned while the project was still at foundation level, before structural works, equipment procurement or installation had commenced.
It said no evidence was provided to justify the technical need, approved schedule, or cost-benefit assessment supporting the timing of the proposed trips.
The audit said the action demonstrated weak expenditure prioritisation and poor sequencing of project activities, noting that it posed a risk of undue delay in completion of the project and diversion of public funds.
Again, the ministry did not respond to questions about the premature foreign trip.
The Auditor-General recommended recovering and remitting the N90 million. It also recommended sanctions under paragraphs 3106 and 3115 of the Financial Regulations (2009) if the ministry fails to comply.
Denial of access to project documents
The audit also raised concerns about the ministry’s failure to give auditors access to project documents.
In Issue 14, the report said auditors were denied access to documents including needs assessment reports, bank mandates for ICT project payments, payment vouchers, due diligence reports on the contractor and the Environmental and Social Impact Assessment report.
READ ALSO: How Nigeria’s Population Commission mismanaged N245 billion on undelivered products, other controversial contracts – Auditor-General
The report said several requests for project-related documents made between March and June 2025 were not answered by the ministry.
It said the denial of access to procurement documents contravened the Constitution and risked concealing financial information, diverting government revenue, and the loss of public funds.
The Auditor-General asked the Permanent Secretary to justify the denial of access and produce all documents relating to the ICT Park project.
The report stated that the ministry did not respond to the issues raised in the audit and that the findings remained valid until the recommendations were implemented.
Other issues
Other issues included a ₦94.05 million cost overrun attributed to the failure to conduct feasibility studies and an Environmental Impact Assessment before the ICT Park project began.
The Auditor-General also flagged ₦19.47 million in costs linked to delayed site handover, while questioning the absence of resident technical supervision despite a ₦160 million provision for it.
The report further cited inadequate budgetary provisions that contributed to project delays and the ministry’s failure to conduct or document a needs assessment before procurement.
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