Agom, a 42-year-old entrepreneur from Anambra state, has tried but failed several times to open a bank account in her state.
She needed multiple documents as demanded by a local bank she wanted to open the account with.
“I’ve tried to open a bank account at least three times over the past few years, and every time, I was told I needed more documents—proof of address, passport photos, utility bills. It felt like a never-ending process, and I was constantly stuck on finding the right documents.”
The experience frustrates Agom who needs the bank account to facilitate her small business.
“As a small business owner, opening a bank account is very important for managing my money, receiving payment for business transactions, and every other thing. But every time I go to the bank, it felt like I was wasting time running around to gather all the required papers. For someone like me, who runs a small business and has a busy schedule, it was almost impossible to get everything done. Sometimes I would forget one document, or they’d ask for an additional one that I didn’t have, for instance, the utility bill cos sometimes i pay through bank transfer and i wouldn’t have the soft copy of the receipt, then i have to embark on another task of finding a means to provide one and that would set me back for days or even weeks. All I needed was an efficient way to access banking services without feeling overwhelmed by paperwork.”
Agom’s experience is all too common for small business owners and everyday Nigerians who find themselves excluded from formal financial services because they cannot fulfill the strict documentation requirements.
Similarly, Tunde, a 38-year-old Farmer from Ifon,Ondo State had his own frustrations when trying to apply for a loan.
“I went to the bank to apply for a loan to expand my farming business. I had the business plan and all the numbers ready, but then they hit me with a list of documents they required. I needed to provide proof of income, tax clearance, bank statements, a recommendation letter from my current bank, collateral documents, and more. I kept running around gathering these documents for months, and in the end, I didn’t even get the loan. It felt like a constant cycle of rejection.”
Tunde went on to explain how the complex process impacted his farm. “The loan was supposed to help me buy equipment and expand my farm, but because the process took so long and the requirements were so much, I ended up losing out on the opportunity. It wasn’t just about the loan; it was the entire system that made it so hard for someone like me to access credit. I have a solid business, and a proven track record, but because I didn’t have all the documents they required, I couldn’t secure the funding I needed, especially as Nigeria’s economy is now. To even buy fertilizer and seedlings is something else as regards the price in the market now.”
For many Nigerians, accessing financial services such as opening a bank account or securing a loan has often been a frustrating, paperwork-heavy process.
The need to submit multiple forms of identification, utility bills, and proof of address has created barriers to financial inclusion.
The Nigerian government though has already launched a nationwide identification process aimed at capturing and collating identification database of all citizens.
The National Identification Number (NIN) system is supposed to provide a harmonized database to make it easier for Nigerians to be identified to access public services.
Agom said believes that the government’s centralized identification system should be made accessible to banks to facilitate access to financial services.
“If I could just walk into a bank with my NIN and open an account, it would be a completely different experience,” She continued. “I wouldn’t have to worry about scrambling for multiple documents just to get started. The process would be so much smoother, and I could focus more on growing my business instead of all the stress involved in putting together the paper work. Plus, I know I’m not alone in facing these challenges. Many people I know, especially other entrepreneurs, struggle with the same issues, and this change would help all of us.”
Tunde agrees and says a harmonized identification system that gets rid of multiple verification processes would be usefl.
“The NIN system would be a huge help. Just imagine if all my information is put together on NIN at once, then it would save me a lot of time and effort. The current system is stressful abeg, making it difficult for people to get the help they need, and you spend more time trying to gather all the requirements. Honestly the federal government need to do better to encourage us, else many people will be out of business and it will definitely affectthe economy.”
Tunde’s experience speaks to the broader issue of financial exclusion, particularly in rural areas, where people often don’t have easy access to the required documents. For many, the process of applying for credit or opening a bank account is simply too complicated to navigate.
The Solution: Embracing Digital Public Infrastructure
For many analysts the NIN, which already serves as a unique identifier for Nigerian citizens, can be linked to financial services, allowing Nigerians to open bank accounts and secure loans using just their NIN.
By digitizing and streamlining the identification process, the government, these analysts believe, can eliminate the need for multiple documents and create a more inclusive financial system.
The NIN, which contains biometric data and other key information, can be used to verify a citizen’s identity and credit history, enabling banks to assess risk and approve loans more efficiently.
“The integration of the NIN with our banking systems has the potential to simplify the entire process of opening an account and applying for loans. With the NIN, all the necessary data such as an individual’s identity, biometric information, and even financial history can be quickly accessed and verified in real time.,” a banker, Ayomide Fatusi said.
Instead of requiring customers to submit a host of additional documents, banks can use NIN as the primary means of verification. This would not only reduce processing times but also improve accuracy, ensuring that only verified individuals can access banking services. “This system makes financial services more accessible to Nigerians who previously struggled with the old, paperwork-heavy system,” He added. “It will also help eliminate fraud, as the biometric data linked to the NIN ensures the identity of the individual is verified.”
NIMC’s Role: A National Push for Digital Identification
The National Identity Management Commission (NIMC), tasked with overseeing the issuance of the NIN, has played a crucial role in making this vision a reality. Dr Alvan Ikoku, the Focal person of NIMC, explained how the initiative is designed to streamline public services and empower Nigerians through a digital, unified identification system.
“Our goal has always been to provide Nigerians with a secure, reliable, and accessible identification system,” Ikoku said. “By collaborating with the Central Bank of Nigeria and other government agencies, we are working to integrate the NIN into the country’s banking and financial systems. This integration will not only simplify access to services like loans and bank accounts but also ensure that every Nigerian citizen has a valid, verifiable identity.”
He also highlighted the steps NIMC has taken to ensure that the NIN system is accessible to all Nigerians, regardless of location. “We are continually expanding our registration infrastructure, including mobile registration units in rural areas, to ensure that every citizen can access their NIN. We want to create a system where every Nigerian has a digital identity that opens doors to financial services, healthcare, and more,” he added.
Dr Alvan Ikoku further explained, “In addition to making it easier for Nigerians to access services, the digitization of the NIN will also help reduce fraud and identity theft. With biometric data tied to the NIN, Nigerians can be assured that their identity is protected and that their financial and personal records are secure.”
The Bigger Picture
Financial expert, Dr. Segun Oladipo, echoed the importance of using technology to bridge gaps in Nigeria’s financial systems. He noted, “Digital infrastructure is no longer a luxury, but a necessity. The more seamless and secure the process of accessing financial services is, the better it will be for Nigeria’s economy. By embracing a single, digital identification system, we create a safer, more efficient way for Nigerians to access credit, loans, and basic banking services.”
Oladipo emphasized the broader economic impacts of such an initiative: “This approach to financial inclusion can significantly expand Nigeria’s economic potential. The easier it is for individuals, especially those in underserved regions, to access loans and banking, the more likely they are to participatein the formal economy. It also opens the door to financial education and entrepreneurship, which in turn boosts job creation and wealth generation.”
Another financial analyst Dr. Emeka Obi said, “The current bureaucratic systems in place for banking and loan access create unnecessary barriers to entry, especially for small businesses and the unbanked population,”.Obi added that leveraging digital infrastructure to create a streamlined, transparent process would empower more Nigerians, particularly entrepreneurs, farmers, and the youth, to access financial services without unnecessary delays. The integration of the NIN with financial systems is a crucial step toward enabling the digital economy to thrive.
He went further to state, “Financial inclusion has been a major goal for Nigeria, and a digitized identification system is one of the most effective tools in achieving this. The ease with which a bank can assess an individual’s creditworthiness, or identity can be the difference between financial exclusion and inclusion. If properly implemented, this system can significantly reduce poverty, increase economic participation, and improve Nigeria’s GDP in the long term.”
