Central Bank of Nigeria (CBN) Governor Olayemi Cardoso on Tuesday reiterated that increasing capital requirements for banks in Nigeria will help them widen credit access to disadvantaged communities, thereby enhancing financial inclusion in Nigeria.
He explained that the higher capital limit will empower financial institutions to better serve marginalized groups including micro, small and medium enterprises (MSMEs), which are the backbone of Nigeria’s economy.
Also, as part of the initiative, the CBN, in partnership with the Development Bank of Nigeria (DBN) and the Bank of Industry (BOI), officially launched the Women Entrepreneur Finance Initiative (W-FI) Code.
The objective of the program is to improve women's access to financial resources, increase their economic participation and in turn promote national development.
Furthermore, Deputy Governor for Financial System Stability Philip Ikezor said the bank is launching sector-specific interventions to meet the unique needs of different demographics.
This, he said, includes initiatives focused on the youth population and measures designed to reduce financial exclusion in Northern Nigeria.
The Bank also launched the Women Financial Inclusion Dashboard (WFID) and the Roadmap for Financial Inclusion of Forced Displaced Persons (FDPs).
Speaking at the 2024 International Financial Inclusion Conference in Lagos, Cardoso said 26 percent of Nigeria's adult population is still excluded from the formal financial system, calling on banks to raise capital requirements to support disadvantaged groups including micro, small and medium financial institutions. Will be able to. Enterprises (MSME).
The theme of the conference was: “Inclusive Growth: Using Financial Inclusion for Economic Growth”, bringing together stakeholders to discuss how financial inclusion can drive national development.
Cardoso also highlighted the CBN's efforts to stabilize Nigeria's economy, manage inflation and build public confidence, reiterating that financial inclusion is a core objective in the journey to make Nigeria a $1 trillion economy.
He said: “The CBN is keen to ensure its financial inclusion policies and initiatives address specific access to finance barriers for disadvantaged populations, particularly women, youth and MSMEs. The importance of this mission cannot be understated, as I have reiterated that financial inclusion is fundamental to Nigeria's sustainable economic development.
“In line with its efforts to deepen financial inclusion, the CBN recently introduced new minimum capital requirements for banks. This strategic move ensures that banks are well capitalized, enabling them to take greater risks, especially in underserved markets.
“With a stronger capital base, banks can provide more loans and financial products to MSMEs, rural communities and other vulnerable sections that previously struggled to access formal financial services.
“This policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. By enabling banks to lend more to MSMEs, we increase job creation and productivity.
“Furthermore, with the increased capital, banks can invest in technology and innovation, which is important to drive digital financial services like mobile money and agent banking. These technologies are vital in breaking down geographical and economic barriers, bringing financial services to even the most remote areas.
She said women play a vital role in driving inclusive growth and in launching the Wi-Fi initiative the Bank is particularly poised to include women more financially with access to finance.
She said: “Research shows that when women are economically empowered, they reinvest in their families and communities, generating broader socio-economic benefits. Yet, women in Nigeria remain disproportionately excluded from the formal financial system.
“The Central Bank of Nigeria has made significant progress in promoting financial inclusion for women and youth, particularly through frameworks aimed at closing the gender gap and regulatory support for digital platforms that are accessible to these vulnerable groups. Provide easy access to financial services.
“With programs aimed at financial literacy, the CBN is also empowering young Nigerians to become financially independent, promoting entrepreneurship and driving economic growth across the country.”
On his part, speaking on the initiative for women, Ikezor said: “Recently to advance the financial inclusion of women, the CBN together with the DBN and BOI publicly announced the Wi-Fi Code which will enable women entrepreneurs. Wants to provide financial access to. resources, empowering them to participate fully in the economy.”
He said other excluded demographics such as the youth, who represent a significant portion of Nigeria’s population, are not left behind.
He said: “Through entrepreneurship programs and digital platforms, young Nigerians are equipped with the financial tools they need to become financially independent and contribute to national development.”
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