A two-day National Savings Group Conference with the theme “Accelerating Financial and Economic Inclusion: The Pivotal Role of Saving Groups in Nigeria”, organised by a non-governmental organisation, Care Nigeria, in partnership with a consortium of non-governmental organisations, Savings Group Implementers Platform, has been held in Abuja, Nigeria’s Federal Capital Territory.
The conference is aimed at facilitating discussions, knowledge sharing and collaborations on the pivotal role of Saving Groups in driving financial inclusion and economic development in Nigeria.
In a welcome remark highlighting the conference objectives and expectations Country Director, Care Nigeria, Dr Hussaini Abdu, stated that the convergence has the objectives of Reviewing the current State of Saving groups in Nigeria, Advocating for Policy and Regulatory Reforms, Sharing Best Practices and Success Stories and Providing a Networking Platform for collaborations.
“Access to Financial Services and participation in savings groups can have transformative impacts on women… By ensuring equal access to financial services and opportunities, we can unlock the full potential of women as agents of change and catalysts for sustainable development,” Abdu added.
In a special remark, the Vice President, International programs, Care, Claudine Mensah Awute said savings Groups have overtime been incubators of Women’s Collective action and Leadership, which has helped them tackle problems like maternal and Child Health, access to market, Gender-based violence and Women political representation, which are issues beyond Financial exclusion.
“A woman with money in her pocket has a voice; a woman with money in her pocket and supported by her government is an engine of her economy,” Awute said.
Delivering a Keynote address on the Future Directions of Savings Group Initiatives, former Special Adviser to the President on Social Investment, Maryam Uwais, pointed out that the potential for increased economic welfare through more efficient resource management and small-scale enterprise is the reason why Savings Groups have proliferated in Nigeria.
She said that despite the challenges faced by Savings Groups in Nigeria, which include Cultural and gender barriers, lack of financial literacy and education, limited access to formal financial services and the policy and regulatory environment, women’s participation in Savings Groups has increased their income, asset accumulation and household bargaining power, leading to improved resources allocation for children and increased engagement in community development.
“Savings Groups offer a promising solution for low-income communities by addressing key challenges like irregular income and expenses… In areas where income is unpredictable, such as agriculture or seasonal work, savings groups provide stability by pooling resources over time. They provide a forum for resources management and a modest but worthwhile return on assets,” Uwais asserted.
Technical Advisor to the Nigerian President on Financial Inclusion, Dr Nurudeen Zauro while committing to a review of the policy framework to ensure a conducive environment for Savings Groups to thrive, said the Renewed Hope Agenda of President Bola Tinubu understands the importance of Financial inclusion.
Zauro further said that at the moment, about 26 percent of Nigerians are financially excluded, while 36 percent are currently unbanked; alluding to the fact that only 10 percent of the informal sector is financially included.
“Based on records we have a large chunk of Nigerians multidimensional poor and the security challenges associated with this is evident. President Bola Ahmed Tinubu understands this problem and the Renewed Hope Agenda attaches importance to the role of Financial inclusion,” Zauro added.
The Conference, supported by USAID, Plan International, Catholic Relief Services, Christian Aid, The World Bank, OxFarm, and the Food and Agriculture Organisation of the United Nations, amongst others, comprehensively reviewed the current state of Savings Groups, identified challenges and opportunities to enhance the effectiveness and sustainability of Savings Groups and pushed for essential policy and regulatory reforms to foster a conducive environment for Saving groups to flourish in Nigeria.
The conference, which drew on-site and virtual participants from Nigeria, Africa, America, Asia and Europe featured panel sessions on Understanding The Current State Of Savings Groups in Nigeria, Bridging the Gap: Savings Groups and Formal Financial Linkages- Opportunities and Challenges, Beyond Financial Inclusion: The Transformative Role of Savings Groups for Socio-Economic Development and a Policy Roundtable: Regulatory Frameworks for Savings Groups through Policy Adoption.
It ended with a call to action by the participants and stakeholders on the government to strengthen the policy framework for the operationalisation of Savings Groups, in light of its important role of bridging the gap in the economic financial inclusion of the unbanked, marginalised, vulnerable, and excluded in the country.
