ABUJA, Aug. 15 (AGCNewsNet) – About 25% of Nigerians without bank accounts say mistrust of financial institutions and high service charges are keeping them from joining the formal financial system, the World Bank said in its latest Global Findex Database 2025.

The report, which tracks financial inclusion, digital payments, savings and borrowing behaviour across economies, said fees for opening and maintaining accounts – such as monthly charges – along with costs for transactions including checking balances, making withdrawals and sending money, were significant deterrents.

“In Nigeria, 25 per cent of adults without accounts mentioned trust as an issue,” the report said. “This concern was often mentioned alongside the high costs of financial services.”

As of 2024, 63% of Nigerian adults had a financial account, up sharply from 45% in 2022, according to the World Bank. By comparison, nearly half the world’s adults lacked an account in 2011, 26% in 2021, and 21% in 2024.

Nigeria is among eight countries – alongside Bangladesh, China, Egypt, India, Indonesia, Mexico and Pakistan – that together account for 53% of the world’s 1.3 billion unbanked adults, or more than 650 million people.

The report urged targeted financial education and stronger consumer protection, including transparent pricing, effective complaints handling, and better fraud and cybersecurity measures. It noted that 22% of unbanked Nigerians pointed to costs as a barrier, highlighting the potential demand for cheaper options such as mobile money accounts.

Other reasons Nigerians gave for not holding accounts include lack of funds, reliance on a family member’s account and distance to the nearest financial institution.

While mobile money is the fastest-growing account type in most sub-Saharan African economies, banks still dominate in Nigeria and Ethiopia. Barriers to using mobile money include insufficient funds, lack of documentation, distance to agents and high product costs.

The report found that in 2024, 54% of Nigerian adults made or received digital payments, 43% saved money in a formal institution, and 9% took loans from such institutions. Mobile phone ownership stood at 84%, but only 38% had used the internet in the three months before the survey.

The data portrays “relatively high mobile ownership, but lower recent internet usage and limited access to formal borrowing, with credit from family or friends being the most common source,” the World Bank said.

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