Financial Inclusion: ESUT VC Urges FG to Adopt Indian Model
Vice Chancellor, Enugu State University of Science and Technology, Professor Anike Okechukwu Luke, has called on Nigerian government to take a cue from the welfare scheme launched by Prime Minister, Narendrs Modiof, in India in 2014, in the implementation of her financial inclusion initiative.
He made the call in a Position Paper Delivered at the Chartered Insurance Institute of Nigeria (CIIN) 2019 Education Seminar held on Thursday in Enugu.
According to him, I will start my recommendation by telling the Nigerian government to take a cue from the Pradhan Mantri Jan-DhanYojana (PMJDY), a people’s welfare scheme, launched by Prime Minister Narendra Modiof India in 2014.
This policy has a tremendous impact on India’s stride in achieving financial inclusion over the last five years and has been extremely effective in bringing the socially excluded into the preview of the banking system. If a similar policy could be initiated in Nigeria, it will increase access to financial services.
He said the strategic importance of financial inclusion as a catalyst for economic growth and development has been well documented, adding several countries in the world, including Nigeria, understand that robust financial inclusion strategy is key.
This, he said, explains why it is today widely considered as the right of all citizens to social inclusion, better quality of life and a tool for strengthening the economic capacity and capabilities of the poor in a nation, describing it as a basic access for all citizens, highlighting its non-excludability and also its non-rivalness.
ESUT VC noted that ppropriate financial services can help vulnerable households reduce risk, build resilience, smoothen consumption, safeguard savings, better manage the consequences of unforeseen events, and invest in assets and grow businesses. To achieve these, insurance remains strategic.
He urged the government to ensure that the current Presidential Youth Empowerment Scheme by the federal government is sustained and improved upon. Saying it has no doubt lifted few individual out of poverty.
Prof. Anike Okechukwu Luke, charged government to launch aggressive media campaigns, to educate Nigerians on the importance of insurance, noting that, such campaigns will enrich the knowledge level of both rural and urban populace on the need for insurance.
On some of the challenges, he said the number of those financially excluded in Nigeria is over 50 percent of the 99 million adult population, adding that one of the major reasons for financial exclusion is the number of rural population that do not have access to financial services.
He said ensuring that the poor rural dwellers are carried along considering the lack of financial sophistication among this segment of the population due to the general low level of financial literacy is a big challenge.
The Prof said effort must be put in place to create jobs for the teeming youth, stating that more jobs, no doubt, will increase financial access.
“This is because reduction in formal employment will lead to reducedin disposable income and savings. This will ultimately affect insurance. On the final analysis, let us all embrace insurance, as that is the key to sustainable financial inclusion. There is no future without insurance,” he added.
Chairman of the Education Committee, Mr Segun Omosehin thanked everyone who attended the occasion and commended the paper presenters on the quality of their papers.
He stated that the Chartered Insurance Institute of Nigeria would continue to ensure that the gospel of Insurance is extended to all nooks and crannies of the country.
Omosehin stated that the growth of Insurance industry was a collective task and that everyone should realise that they are not just participating elements but key stakeholders.
He extended the gratitude of the Governing council to the Enugu State Chapter of CIIN in appreciation of the work they put in to ensure that the 47th Edition of the CIIN Education Seminar, which was held at Hotel Sylvia, Enugu was a resounding success.
