Enugu State Governor, Dr. Peter Mbah, has presented a compelling case for financial inclusion as a driver of economic growth, using the remarkable transformation of Enugu State’s internally generated revenue (IGR) as a prime example. Speaking at the inauguration of the Presidential Committee on Economic and Financial Inclusion in Abuja, Governor Mbah revealed that Enugu State’s IGR surged from N30 billion to an impressive N500 billion annually, representing a staggering 1,000% increase. He attributed this remarkable feat not to increased taxation, but to strategic policies focused on expanding financial inclusion within the state. This accomplishment underscores the profound impact of integrating marginalized populations into the formal financial system, not just for individual empowerment, but also for the overall economic health of the nation.
Governor Mbah’s core message emphasizes the vital link between economic growth and the well-being of the most vulnerable members of society. He argued that true economic progress cannot be achieved by neglecting the disadvantaged, and policies must be designed to ensure that no one is left behind. This philosophy aligns with the broader goals of the Presidential Committee on Economic and Financial Inclusion, which aims to create a more inclusive financial landscape for all Nigerians. By bringing more citizens into the formal financial system, the committee seeks to unlock the untapped economic potential of underserved communities, contributing to both individual prosperity and national economic growth.
Mbah’s strategy in Enugu State focused on widening the tax net, not by increasing tax rates, but by incorporating more people into the financial system. This approach enabled more citizens to participate in the formal economy, contributing to the dramatic rise in IGR. This model suggests that rather than burdening existing taxpayers with higher rates, governments can achieve greater revenue generation by facilitating access to financial services for previously excluded populations. This, in turn, empowers individuals, fosters economic activity, and strengthens the overall fiscal health of the state.
The Governor’s emphasis on financial inclusion extends beyond simply increasing government revenue. He highlighted the importance of developing innovative financial products tailored to the needs of marginalized communities. This includes bridging the digital divide to ensure greater financial participation, as access to technology and digital literacy are increasingly crucial for accessing financial services. By promoting financial literacy and providing accessible financial tools, governments can empower individuals to manage their finances effectively, participate in the economy more fully, and contribute to national economic growth.
Governor Mbah’s experience in Enugu State provides a practical example of how financial inclusion can translate into tangible economic benefits. This success story serves as a compelling argument for the broader adoption of financial inclusion strategies at the national level. The Presidential Committee on Economic and Financial Inclusion, of which Governor Mbah is a member, is tasked with designing policies that will replicate this success across Nigeria. The committee’s work will be crucial in developing a comprehensive framework for financial inclusion, focusing on expanding access to financial services, promoting financial literacy, and fostering an enabling environment for inclusive economic growth.
Ultimately, the message from Governor Mbah is clear: sustainable economic growth requires deliberate planning, strategic policies, and a commitment to inclusivity. Financial inclusion is not just a social imperative, but a powerful engine for economic development. By integrating all segments of society into the financial system, Nigeria can unlock its full economic potential and create a more prosperous future for all its citizens. The work of the Presidential Committee on Economic and Financial Inclusion will be instrumental in translating this vision into reality.
