The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has disclosed that nearly one-third of Nigerians cannot access capital to grow businesses, secure savings for the future, or obtain insurance to mitigate risks.
Additionally, over 28 million Nigerians still lack access to formal financial products and services.
Cardoso made this disclosure while delivering his welcome address at the two-day second International Financial Inclusion Conference 2024 (IFIC24) in Lagos on Tuesday.
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According to him, the CBN has introduced far-reaching policies aimed at promoting financial inclusion, which has the potential to unlock significant economic growth, particularly through the empowerment of small and medium-sized enterprises (SMEs), women, and other vulnerable segments of the population.
Small and medium-sized enterprises (SMEs) are responsible for over 80% of employment in Nigeria, yet many struggle to access the credit needed for expansion. He added that financial inclusion for SMEs is essential to unlock the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises.
“One of the most transformative tools for financial inclusion has been the adoption of digital payment channels leveraging mobile technology. Nigeria’s growing mobile phone penetration provides an unprecedented opportunity to expand access to financial services. Interoperable payment platforms have enabled millions of Nigerians to send payments, save, and access credit without traditional bank accounts.
“Technological advances have democratized financial services, allowing people in remote areas to participate in the economy, and this government is committed to creating an enabling environment for these innovations to thrive, through policies that foster competition, innovation, and financial stability,” Cardoso stated.
In Nigeria, the 2023 EFInA Access to Finance survey reveals that 26% of the adult population remains financially excluded. The absence of these services traps individuals in cycles of poverty and stunts national economic expansion.
He added that widespread access to financial services is an enabler of economic activity, stressing that MSMEs, which are the backbone of Nigeria’s economy, can thrive with improved access to credit, creating jobs and boosting productivity. Moreover, as more Nigerians can save and invest in education, healthcare, and housing, their quality of life improves, fostering broader economic development. Financial inclusion unlocks untapped potential, making it a vital instrument for national progress.
In line with its efforts to deepen financial inclusion, Cardoso said the CBN recently introduced new minimum capital requirements for banks. This strategic move ensures that banks are well-capitalized, 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, which are 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 emphasized.
Earlier in his opening remarks, the Chairman of the National Financial Inclusion Technical Committee and Deputy Governor of Financial System Stability, Philip Ikeazor, observed that despite the progress recorded so far, “over 28 million Nigerians still have no access to formal financial products and services, and certain challenges persist, particularly in ensuring financial access for the five most excluded demographics: women, youth, rural communities, Northern Nigeria, and micro, small, and medium enterprises (MSMEs).”
In recognition of these key excluded demographics and in a bid to address these disparities, Ikeazor noted that the Central Bank of Nigeria has also rolled out targeted programs and initiatives, including Financial Inclusion drives, financial and digital literacy awareness, sensitization campaigns, and the release of frameworks and guidelines aimed at accelerating financial inclusion and guiding players in the space.
“In its simplest form, financial inclusion ensures that people have access to bank accounts, credit, savings, and other essential services. However, its implications for national development are far-reaching.
Ikeazor further stated that financial inclusion is not only about economic empowerment; it is about creating opportunities and ensuring that no Nigerian is left behind in the quest for prosperity. The Central Bank of Nigeria, according to him, will continue to drive the initiatives and policies necessary to ensure that financial inclusion remains a priority, fostering innovation, and providing access to financial services for all Nigerians.
