Nigeria's Trust Gap Undermines Financial Inclusion Gains

Dormant bank accounts in Nigeria rose to more than 33 million by March 2025, up sharply from under 20 million a year earlier. While part of the increase reflects the Central Bank of Nigeria’s recent push to link accounts to verified identity numbers—causing closures and reclassifications—the underlying trend of rising dormancy persists. The growing number of inactive accounts signals a loss of confidence among users, stemming from fragmented responsibility across multiple financial institutions, failed transactions, unresolved complaints, and fraud. The article notes that over one‑in‑five unbanked adults across developing economies cite distrust of financial institutions as a barrier to participation. The author, a former deputy governor of the Central Bank of Nigeria, highlights that earlier innovations—such as rapid payment rails, biometric identity anchors, and a supportive licensing regime—successfully expanded access, but sustaining usage now requires rebuilding trust in the system.