The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, on Tuesday reiterated that raising capital requirements for banks in Nigeria would empower them to broaden credit access to underserved communities, thereby enhancing financial inclusion in Nigeria.
He explained that higher capital thresholds will empower financial institutions to better serve marginalised groups, including Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of Nigeria’s economy.
Also, as part of the initiatives, the CBN, in partnership with the Development Bank of Nigeria (DBN) and Bank of Industry (BOI), officially launched the Women Entrepreneurs Finance Initiative (We-Fi) Code.
The programme seeks to improve women’s access to financial resources, enhancing their economic participation and, in turn, driving national growth.
Besides, the Deputy Governor of Financial Systems Stability, Phillip Ikeazor, said that that the bank was introducing region-specific interventions to meet the unique needs of different demographics.
This, he said, includes initiatives focused on the youth population and measures tailored to reduce financial exclusion in Northern Nigeria.
The bank also launched the Women’s Financial Inclusion Dashboard (WFID) and Roadmap for the Financial Inclusion of Forcibly Displaced Persons (FDPs).
Speaking at the 2024 International Financial Inclusion Conference in Lagos , Cardoso stated that with 26 per cent of Nigeria’s adult population still outside the formal financial system, raising banks’ capital requirements would enable financial institutions to support underserved groups, including micro, small, and medium enterprises (MSMEs).
The conference themed: “Inclusive Growth: Harnessing Financial Inclusion for Economic Development,” brought together stakeholders to discuss how financial inclusion can drive national development.
Cardoso also highlighted the CBN’s efforts to stabilise Nigeria’s economy, manage inflation, and instil public confidence, reiterating that financial inclusion is a core objective in the journey toward making Nigeria a $1 trillion economy.
He said: “The CBN is keen on ensuring its financial inclusion policies and initiatives address the peculiar access to finance barriers for underserved populations, particularly Women, Youth, and MSMEs. The importance of this mission cannot be overstated, as I have reiterated that financial inclusion is foundational 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-capitalised, enabling them to take on greater risks, particularly in underserved markets.
“With stronger capital bases, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have 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 extend more credit to MSMEs, we enhance job creation and productivity.
“Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas.”
He noted that women play a critical role in driving inclusive growth and the bank in launching the We-Fi initiative is poised to enhance women to be more financially included especially with access to finance.
He said: “Research shows that when women are financially empowered, they reinvest in their families and communities, creating broader socio-economic benefits. Yet, women in Nigeria are disproportionately excluded from the formal financial system.
“The Central Bank of Nigeria has made significant strides in promoting financial inclusion for Women and youth, particularly through Frameworks aimed at closing gender gaps and regulatory support for digital platforms that offer easier access to financial services for these vulnerable groups.
“With programmes aimed at financial literacy, the CBN is also empowering young Nigerians to become financially independent, fostering entrepreneurship, and driving economic growth across the country.”
On his part, speaking on the initiative for women, Ikeazor said: “Most recently to drive women’s financial inclusion, the CBN alongside the DBN and BoI made a public declaration to the We-Fi Code which seeks to provide women entrepreneurs with access to financial resources, empowering them to participate in the economy fully.”
He added that other excluded demographics are not left behind such as the youth, which represent a significant portion of Nigeria’s population.
He said: “Through entrepreneurship programmes and digital platforms, young Nigerians are equipped with the financial tools they need to become financially independent and contribute to National growth.”
Nume Ekeghe
Follow us on:
Edo Governor Okpebholo has formed a 14-member committee to investigate assets and liabilities under Godwin…
A gunman was killed, and three Jordanian policemen were injured in a shooting near the…
EXCERPT: Putin has signed a new law forgiving up to 10 million roubles debts of…
An alleged assassination threat by Philippines VP Sara Duterte against President Marcos has triggers investigation,…
Developed nations, at COP29, have pledged a record $300bn for climate change prevention in poorer…
Defence Minister Badaru Abubakar has reaffirmed President Tinubu's commitment to restoring peace and stability in…