About 57.9 million Nigerians, in 2021, abandoned their bank accounts. This was as they struggled with food inflation, hike in rents and transportation, low income, and multiple taxations, amongst other challenges.
According to the Nigerian Interbank Settlement System (NIBSS), the total number of inactive bank accounts last year represents an 11% increment from 52.2 million, which was recorded in 2020.
Here’s why people are abandoning their bank accounts
It is common knowledge that since COVID-19 and the Russian invasion of Ukraine disrupted the global economy, Nigeria in particular has been facing a myriad of challenges. From food inflation to alarming prices of petrol and diesel, many people could no longer afford their usual three square meals a day.
With seven states still yet to implement the N30,000 minimum wage, Picodi, an international e-commerce company, recently reported that the price of essential foodstuff requirement for one adult stood at N40,980 Naira.
Meanwhile, Zainab Ahmed, the Minister of Finance, Budget, and National Planning, recently stated that even though several Nigerians have dumped their bank accounts due to hardship in the country, the economy is better Under President Muhammadu Buhari’s administration when compared to his predecessors.
Her words: “In 2015, the administration came on and faced a crisis in the oil and gas sector; we had the first slump in crude oil prices and a very significant slump in crude oil production.
“There was a time when the volumes went as low as one million barrels per day. We were able to take measures to reflate the economy and exit the recession within three quarters. By the fourth quarter, we were out of recession.
“Secondly, we had a second recession due to COVID-19. That was even a shorter recession, and we have now seen up to five quarters of positive growth. So, the economy has been growing, despite very, very difficult circumstances.
“The other thing I need to remind us is that this administration has been able to realize the lowest oil and gas revenue, compared to all previous administrations, but it has also been able to do much more in terms of deployment of infrastructure. So, the administration has done well.”
