The Centre for the Study of Economies in Africa (CSEA) investment experts have partly linked the growing inactive bank accounts in the country to weak economic situation, as reflected in high inflation, high unemployment, and the continued depreciation of the domestic currency, amongst others.
As a way out of the monetary challenge, they charged the monetary and fiscal authorities to adopt measures that would improve the economic conditions and by implication, stimulate investments in key sectors of the nation’s economy in the medium and long terms.
The CSEA experts hinged their recommendations on the findings in the recently released 2021 Electronic-payment Fact Sheet by the Nigerian Interbank Settlement System (NIBSS), which showed “that Nigerian banks had a total of 191.4 million bank accounts in 2021, out of which 133.5 million were active, suggesting that a total of 57.9 million were inactive.”
According to the experts, their recommendation was informed by the findings in the recently published S), which indicated that Nigerian banks had a total of 191.4 million bank accounts in 2021, out of which 133.5 million were active, suggesting that a total of 57.9 million were inactive.”
The firm’s Economic Update report showed that the NIBSS’ Fact Sheet further revealed that the number of bank accounts increased by 24.4 million (14.6 percent) from 167.0 million in 2020 to 191.4 million in 2021.
However, Fact Sheet further stated that the number of active bank accounts increased by a less amount, 18.7 million, from 114.8 million in 2020 to 133.5 million in 2021. Consequently, inactive accounts increased by 5.7 million, from 52.2 million in 2020 to 57.9 million in 2021.
Based on the published facts, the CSEA analysts posited: “The weak economic situation, as reflected in high inflation, high unemployment, and the continued depreciation of the domestic currency, contributes partly to the rising number of inactive bank accounts.
“Consequently, improving economic conditions would help tackle the rising inactive bank accounts in the country”, the CSEA added.
