The Governor of the Central Bank of Nigeria, Olayemi Cardoso has stated that the new capital requirement for banks will strengthen their ability to boost financial inclusion. He stated that with a stronger capital base, banks will be better equipped to offer more loans and financial products to MSMEs, rural areas, and other underserved communities.
Cardoso made this statement at the second International Financial Inclusion Conference, which was themed Inclusive Growth: Harnessing Financial Inclusion for Economic Development, held in Lagos. The CBN Governor also emphasized the CBN’s efforts to stabilize Nigeria’s economy, control inflation, and boost public confidence, stressing that financial inclusion is a key goal in the country’s path to achieving a $1 trillion economy.
He said, “In line with its efforts to deepen financial inclusion, the Central Bank of Nigeria recently introduced new minimum capital requirements for banks. This strategic move ensures that banks are well-capitalized, enabling them to take on greater risk, particularly in underserved markets.
He stated further that, aside from strengthening financial stability, the recapitalization of the banking industry catalyzes inclusive growth. “We enhance job creation and productivity by enabling banks to extend more credit to MSMEs. Furthermore, with increased capital, banks can invest in technology and innovation, which is crucial for driving digital financial services such as mobile money and agent banking.
The apex bank governor added that these technologies are key to breaking down geographic and economic barriers and bringing financial services to remote areas. “SMEs are responsible for over 80 percent of employment in Nigeria, yet many struggle to access the credit needed for expansion. Financial inclusion for SMEs is essential to unlock the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises.
“Similarly, women play a critical role in driving inclusive growth. 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, acknowledging this need, has made notable progress in advancing financial inclusion for women and youth. This includes frameworks designed to close gender gaps and regulatory support for digital platforms that provide these vulnerable groups with easier access to financial services. He also emphasized that the adoption of digital payment systems, powered by mobile technology, is one of the most transformative tools for promoting financial inclusion.
