National Issues
Solving financial exclusion of People Living with Disabilities
Solutions from other jurisdictions provide useful templates to drive the financial inclusion of the underserved and financially excluded people living with disabilities (PLWD) in Nigeria. Nigerian banks need to conduct research into the unmet needs of the physically challenged populations who are presently underserved and largely excluded from accessing formal financial services.
Lloyds Banking Group in Britain took this step to understand the unmet needs of customers suffering from dementia. The outcome of the research led to the development of charter on the dementia-friendly financial services. This is an outstanding step to identify the needs of customers with a view to increasing their access to financial services. This solution driven approach should be embraced by Nigerian banks towards solving the problems of the physically challenged population.
Experiences of PLWDs revealed the dimensions of the barriers to financial inclusion which they face. Akin, for instance, is physically challenged and feels that Nigeria is full of barriers for PLWDs. He lamented that most banking architectural designs exclude them. “Nigeria is full of barriers.
Architectural barriers are all over the place. Most of our public buildings in Nigeria are designed in such a way as to make life more difficult and stressful for persons with disabilities. In other words, persons with disabilities are not usually considered when public buildings are being designed.”
Akin is not alone in this. Bimbola, a civil servant, who also lives with disabilities, explained that she opened her bank account because it was a condition for her to be paid her salary. “If not for the salary I received through bank, I would not have had a bank account. The reason is that banks in Nigeria are not built to be accessed by persons with disabilities.
Someone on crutches, for instance, cannot access the Automated Teller Machine (ATM) because of the structure that will require the person to climb steps. If such person also wants to enter the banking hall, there are steps to climb. Besides, tiled floor in the banking hall could cause crutches to slip,” she said.
On another note, Yinka disclosed how technology impedes his access to the banking hall. He said, “I do not have access to the banking hall because of the security doors. Even If I have difficulty with the ATM, I will not be allowed to enter. Rather I will be attended to outside the banking hall by some bank staff. Although they have been meeting my needs, I am not satisfied with such arrangement as I am always under the scorching sun waiting for whoever handles my case to come out of the banking hall. I believe I have right to enter to enjoy facilities like air conditioner and toilet provided out of the profits realized from my transactions.”
Although the security doors are for the protection of staff, money and facilities from armed robbers, PLWDs like Yinka, feel bank facilities should be peculiar to the unique characteristics of customers.
Many PLWDs are also reportedly denied access to financial loans although those gainfully employed have better experiences than others. Bimbola, for instance, has received a bank loan.
She said, “I had got a bank loan before. This, I believe, was possible because I am a civil servant. Such access could not have been there if I wasn’t a civil servant because the bank might think persons with disabilities were too poor to refund loans.”
Visually impaired Ade decided not to request for an ATM card because not all bank galleries are disability friendly. He said, “For someone like me with physical limitation, I cannot gain physical access to the ATM. So, I would have to depend on some other people for transactions performed with the ATM card. This would be like taking unnecessary risks. Ade considers his decision a rational safeguard against fraud. “I do not possess an ATM card. I was advised to do away with it. Even though it is convenient using it, the gains associated with it are lesser than the costs for someone like me who cannot see.”
Bank Staff disclosed that the visually impaired are advised against taking ATM card in order not to compromise their personal identification numbers (PINs) and be defrauded. Although PLWDs globally face barriers but steps to address these problems has been encouraging in India. With about 66million PLWDs, India is addressing the challenges of financial inclusion of PLWDs with development of assistive technologies (AT). Assistive technologies make the environment, products and services easily accessible to PLWDs. Common ones being used are text and image magnification for the visually impaired, audio and tactile technologies for the blind and the deaf.
In the same vein, Nigerian banks could deploy screen magnifiers, Braille display/keyboards, and speech synthesizers to drive financial inclusion of PLWDs. Banks could also install ramps on all ATMs and Braille keypads on at least one machine in a gallery to assist PLWDs.
In its 2019 Rule Book, the Central Bank of Nigeria (CBN) mandates Deposit Money Banks (DBM) “to provide opportunity for increased access to its products and services through platforms such as cash centres, e-branches, and mobile money and increasing efficiency to serve more clients. A Bank should consider making its physical locations and facilities accessible to physically challenged persons.”
Despite this policy intervention, PLWDs continually suffer unpleasant experiences accessing banking services. They are excluded by disability-unfriendly structures and are made to endure exclusionary financial services. Yet PLWDs constitute untapped goldmine for banks to retain sizeable share of the banking market and grow their organisations. Underestimating the buying power of the physically challenged population in Nigeria will be to the detriment of DBMs.
According to the Martin Prosperity Institute, the purchasing influence power of people living with disabilities is expected to exceed $1trillion in the United States by the end of 2021. This is a possibility for the Nigerian economy if embraced but why should we drive the financial inclusion of PLWDs?
According to the World Health Organisation, over one billion people globally live with one form of disability or another with 190million of them within 15 years and above bracket. In Nigeria, there are about 25million PLWDs and close to 40million persons are financially excluded. The Nigeria Inter-Bank Settlement System PLC reported that there are about 124.85million bank accounts opened in Nigeria. Out of these, 45.57million are dormant. What this tells us is that there is a largely untapped market of PLWDs by banks and not doing so affects the life chances of this underserved vulnerable social group who operate at the margins of financial inclusion.
While people living with disabilities (PLWD) in urban centres face financial exclusion, the experiences of their counterpart in the rural areas which house over fifty percent of Nigerians is better imagined than experienced. Capturing PLWD in formal financial services will make them save, invest, access loans and contribute to the growth of the economy, according to experts.
To address the problem of disability unfriendly structures, the CBN must ensure that banks’ architectural designs are disability-friendly and that their financial services accommodate all forms of disabilities. The government also has a major role to play to ensure that it enforces the provisions of the Discrimination against Persons with Disabilities (Prohibition) Act of 2018 which provides five-year transition of modification of public buildings, structures and automobiles to make them accessible and usable for persons living with disabilities.
Dr. Tade, sociologist and solution journalist wrote via dotad2003@yahoo.com
The Nigerian government spent a staggering $3.58 billion on servicing foreign debt within the first nine months of 2024, marking a significant 39.77% increase compared to the $2.56 billion expended over the same period in 2023.
This data, drawn from a recent report on international payment statistics by the Central Bank of Nigeria (CBN), reflects a concerning rise in the country’s foreign debt obligations amid depreciating currency values.
According to the report, the most substantial monthly debt servicing payment occurred in May 2024, totaling $854.37 million. This is a substantial 286.52% increase from May 2023’s $221.05 million.
Meanwhile, the highest monthly payment for 2023 was $641.7 million in July, underscoring the trend of Nigeria’s escalating debt costs.
Detailed analysis of monthly payments further illuminates the trend.
In January 2024, debt servicing costs surged by 398.89%, reaching $560.52 million, a significant rise from $112.35 million in January 2023. However, February saw a modest reduction of 1.84%, with costs decreasing from $288.54 million in 2023 to $283.22 million in 2024. March also recorded a decline of 31.04%, down to $276.17 million from $400.47 million the previous year.
Additional fluctuations in debt payments continued throughout the year, with June witnessing a slight decrease of 6.51% to $50.82 million from $54.36 million in 2023. July 2024 payments dropped by 15.48%, while August showed a 9.69% decline compared to 2023. September, however, reversed the trend with a 17.49% increase, highlighting persistent pressure on foreign debt obligations.
With the rise in exchange rates exacerbating these financial strains, Nigeria’s foreign debt servicing costs are projected to remain elevated.
The central bank’s data highlights how these obligations are stretching national resources as the naira’s devaluation continues to impact debt repayment in dollar terms.
Rising State Debt Levels Add Pressure
The federal government’s debt challenges are mirrored by state governments, whose collective debt rose to N11.47 trillion by June 30, 2024.
Despite allocations from the Federal Accounts Allocation Committee (FAAC) and internally generated revenue (IGR), states remain heavily reliant on federal transfers to meet budgetary demands.
According to the Debt Management Office (DMO), the debt burden for Nigeria’s 36 states and the Federal Capital Territory (FCT) rose by 14.57% from N10.01 trillion in December 2023.
In naira terms, debt rose by 73.46%, from N4.15 trillion to N7.2 trillion, primarily due to the naira’s depreciation from N899.39 to N1,470.19 per dollar within six months. External debt for states and the FCT also increased from $4.61 billion to $4.89 billion during this period.
Further data from BudgIT’s 2024 State of States report illustrates how reliant states are on federal support. The report revealed that 32 states depended on FAAC allocations for at least 55% of their revenue in 2023.
In fact, 14 states relied on FAAC for 70% or more of their revenue. This heavy dependence on federal transfers underscores the vulnerability of states to fluctuations in federal revenue, particularly those tied to oil prices.
The economic challenges facing both the federal and state governments are stark. The combination of mounting foreign debt, fluctuating exchange rates, and high reliance on federally distributed revenue suggests a need for fiscal reforms to bolster revenue generation and reduce vulnerability to external shocks.
With foreign debt obligations continuing to grow, the report emphasizes the urgency for Nigeria to address its debt sustainability to foster long-term economic stability.
Engr. Aderemi Oseni, representing Ibarapa East/Ido Federal Constituency of Oyo State in the House of Representatives, has called for a prompt investigation into the increasing occurrences of building collapses in major cities across Nigeria.
In a motion presented to the House on Wednesday, Oseni expressed deep concern over the alarming frequency of building collapses, emphasising the threat they pose to the lives and property of Nigerians.
The APC lawmaker, through a statement by his media aide, Idowu Ayodele, cited the recent collapse of a two-storey school building at Saint Academy in Busa Buji, Jos, Plateau State, on July 12, 2024. The tragic incident, which trapped 154 people and claimed 22 lives, is the latest in a series of similar disasters, raising serious concerns nationwide.
Oseni also referenced a report from The Punch newspaper, which revealed that Nigeria had recorded 135 building collapse incidents between 2022 and July 2024.
“This figure is alarming and unacceptable,” he stated, stressing the urgency of preventing further occurrences.
The Chairman of the House Committee on Federal Roads Maintenance Agency (FERMA), Oseni reminded the House that the Council for the Regulation of Engineering in Nigeria (COREN) and other relevant professional bodies are responsible for ensuring compliance with building standards and practices.
“Despite these regulatory frameworks, the recurring collapses suggest that enforcement is lacking. The loss of lives, properties, and resources is staggering, and this disturbing trend must be addressed immediately,” he remarked.
He proposed the formation of an Adhoc Committee to investigate the underlying causes of these collapses and recommend both immediate and long-term solutions.
Also, he urged the House Committee on Legislative Compliance to ensure swift implementation of any recommendations.
The House agreed to deliberate on the motion and is expected to present its findings and proposed actions within eight weeks.
The Vice-chairman of the Oyo Council of Obas and Chiefs, Oba Francis Olusola Alao, has expressed deep concern over the increasing involvement of religious leaders in material pursuits, accusing them of abandoning their spiritual duties in favour of wealth and influence.
Oba Alao, who is also the Olugbon of Orile Igbon, made this statement during a visit from the leadership of the Cherubim and Seraphim Church Movement “Ayo Ni O,” led by Baba Aladura Prophet Emmanuel Abiodun Alogbo, at his palace in Surulere Local Government on Thursday.
The monarch accused some religious leaders of sharing part of the blame for the moral and political crises that have engulfed the nation. According to him, spiritual leaders, once seen as the moral compass of society, have become compromised by corruption, aligning themselves with the very forces they should condemn.
Oba Alao was unapologetic in his criticism, stating, “Ninety-five percent of Nigerian leaders, both political and religious, are spiritually compromised.”
He argued that this moral decay among clerics has made it impossible for them to hold political leaders accountable or speak the truth to those in power, as their integrity has been eroded by their pursuit of material wealth.
“Carnality has taken over spirituality. Our religious leaders can no longer speak the truth to those in authority because their minds have been corrupted. Most of the so-called General Overseers (G.O.) are corrupt and perverted,” Oba Alao added.
He stressed that this shift towards wealth accumulation at the expense of spiritual values has greatly contributed to the country’s stagnation in development and social justice.
Olugbon urged both religious leaders and traditional rulers to reflect on their actions, reminding them that they would be held accountable for their stewardship, both in this world and the next.
“The prayers of sinners are an abomination before God, hence the need for our leaders to rethink,” he warned.
The monarch concluded by reiterating the transient nature of power and the importance of staying true to sacred duties, regardless of the temptation to indulge in worldly gains. “I am a traditional ruler. I don’t belong, and will never belong, to any occultic groups,” he emphasised, drawing a clear line between his position and the corrupt practices of some leaders.
In response to the Cherubim and Seraphim Church Movement’s request for collaboration on community development projects, Oba Alao assured them of his support.
“Your requests are aimed at the development of the Orile Igbon community. I am assuring you that necessary assistance will be provided in this regard.”
Earlier, Prophet Alogbo requested the monarch’s collaboration on a range of community development projects. These initiatives include the establishment of a women and youth empowerment center, clean drinking water initiatives, a bakery, animal production facilities, and farm produce processing.
Other proposals included a diagnostic and medical center, a full-size recreational sports facility, and a home care facility for the elderly.
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