Financing inclusive growth in Nigeria: challenges and prospects

Abstract

In this paper, the author lays a great deal of emphasis on the importance Inclusive Growth (IG). Inclusive Growth is growth in its entirety, holistic and comprehensive, including everything. It could be broad-based growth across sectors, shared growth and pro-poor growth. Inclusive growth can be described as economic growth with widest participation and benefits best shared through equal opportunities. It is concerned with opportunities for the majority of the labour force, poor and middle-class alike to participate in the production of goods and services rather than in income redistribution as was done in India some years ago. Inclusive growth is a means for rapid and sustained poverty reduction. Emphasis is on equality of opportunities in terms of access to markets, resources and unbiased regulatory environment for businesses and individuals. In short, Inclusive growth is about raising growth levels and enlarging the size of the economy while providing a level playing field for investment (productivity growth) and increasing employment opportunities. To better understand Inclusive Growth, it may be desirable at this point to explain what Financial Inclusion (FI) is. FI is defined as the provision of access to a wide range of financial services to everyone that needs them. Such financial services include credit, savings, payments, leasing, insurance and financial advice. It is also the delivery of banking services to the vast sections of disadvantaged and low income people.