The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, said on Tuesday that the new capital requirements for banks will play a transformative role in expanding financial inclusion across the country.
Cardoso shared this insight during the second International Financial Inclusion Conference, themed Inclusive Growth: Harnessing Financial Inclusion for Economic Development, held in Lagos.
Cardoso emphasized that the enhanced capital base mandated by the CBN would empower banks to increase their outreach and offer more financial products to underserved segments, including micro, small, and medium enterprises (MSMEs) and rural communities.
“The Central Bank of Nigeria recently introduced new minimum capital requirements for banks. This strategic move ensures that banks are well-capitalised, enabling them to take on greater risk, particularly in underserved markets,” he explained.
According to Cardoso, a stronger capital base will enable Nigerian banks to take greater risks necessary for serving vulnerable communities that have historically struggled to access formal financial services.
“With a stronger capital base, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments,” he said.
He noted that these measures are not only critical for financial stability but also serve as a powerful catalyst for inclusive growth.
The CBN’s new policy is designed to boost banks’ capacity to extend credit, particularly to MSMEs. Cardoso highlighted the potential economic impact, saying, “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity.”
Increased capital will also allow banks to invest in technological innovations necessary for digital financial services, such as mobile money and agent banking, which can bring essential services to remote areas and lower the barrier to financial access.
Cardoso further highlighted the importance of these technologies in breaking down economic and geographical barriers.
Mobile technology, digital payments, and agent banking, he said, are key tools to overcome the limitations faced by rural populations.
“These technologies are essential in bridging the gap and reaching remote areas,” Cardoso affirmed.
Addressing the broader potential of financial inclusion, Cardoso underlined the role of small and medium-sized enterprises (SMEs), which employ over 80 per cent of the Nigerian workforce, as drivers of economic growth.
However, many SMEs face challenges in accessing credit, limiting their expansion potential. “Financial inclusion for SMEs is essential to unlocking the full potential of this sector,” he stated.
The CBN governor further emphasized the bank’s commitment to supporting women entrepreneurs, citing research that shows economically empowered women reinvest in their communities, creating wider social benefits.
Recognizing the significant financial gap that women face, Cardoso highlighted CBN’s targeted efforts to address gender disparities.
The bank has introduced frameworks and regulatory support for digital platforms that facilitate financial access for women and youth.
“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,” he asserted.
Cardoso reiterated that digital financial inclusion initiatives remain central to the CBN’s strategy for fostering inclusive growth. These efforts have already shown promise: according to Enhancing Financial Innovation and Access (EFInA), Nigeria’s financially included population grew from 68 per cent in 2020 to 74 per cent in 2023.
As the CBN continues to enhance its financial inclusion policies, Cardoso expressed optimism that these new capital requirements will drive Nigeria towards a more inclusive economy, empowering underserved populations through innovative financial solutions.