The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, emphasized the importance of raising capital requirements for banks during a recent address. He stated that this move would empower financial institutions to expand credit access to underserved communities, ultimately enhancing financial inclusion across Nigeria.
Cardoso explained that higher capital thresholds would enable banks to better serve marginalized groups, particularly Micro, Small, and Medium Enterprises (MSMEs), which are vital to the nation’s economy.
In conjunction with this initiative, the CBN, in partnership with the Development Bank of Nigeria (DBN) and the Bank of Industry (BOI), officially launched the Women Entrepreneurs Finance Initiative (We-Fi) Code. This program aims to improve women’s access to financial resources, thereby increasing their economic participation and contributing to national growth.
Deputy Governor of Financial Systems Stability, Phillip Ikeazor, noted that the bank is also implementing region-specific interventions to address the unique needs of various demographics. This includes initiatives aimed at the youth population and measures designed to reduce financial exclusion in Northern Nigeria. Additionally, the CBN introduced the Women’s Financial Inclusion Dashboard (WFID) and a Roadmap for the Financial Inclusion of Forcibly Displaced Persons (FDPs).
Speaking at the 2024 International Financial Inclusion Conference in Lagos, Cardoso highlighted that 26 percent of Nigeria’s adult population remains outside the formal financial system. He reiterated that raising banks’ capital requirements would enable financial institutions to better support underserved groups, including 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 underscored the CBN’s commitment to stabilizing Nigeria’s economy, managing inflation, and instilling public confidence, stating that financial inclusion is a core objective in the pursuit of making Nigeria a $1 trillion economy.
“The CBN is dedicated to ensuring that its financial inclusion policies address the unique barriers faced by underserved populations, particularly women, youth, and MSMEs,” Cardoso remarked. “Financial inclusion is foundational to Nigeria’s sustainable economic development.”
He elaborated on the recent introduction of new minimum capital requirements for banks, describing it as a strategic move to ensure that banks are well-capitalized and capable of taking on greater risks 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 historically struggled to access formal financial services.
“This policy not only strengthens financial stability but also acts as a catalyst for inclusive growth. By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity,” he added.
Cardoso also noted the crucial role of women in driving inclusive growth. He stated that the launch of the We-Fi initiative aims to enhance women’s financial inclusion, particularly in accessing finance. “Research shows that when women are financially empowered, they reinvest in their families and communities, creating broader socio-economic benefits. Yet, women in Nigeria remain disproportionately excluded from the formal financial system,” he said.
The CBN 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 facilitate easier access to financial services for these vulnerable groups. Through financial literacy programs, the CBN is also empowering young Nigerians to achieve financial independence, fostering entrepreneurship, and driving economic growth across the country.
Ikeazor added, “To further drive women’s financial inclusion, the CBN, alongside the DBN and BOI, has publicly declared its commitment to the We-Fi Code, which seeks to provide women entrepreneurs with access to financial resources, empowering them to fully participate in the economy.”
He also emphasized that other excluded demographics, such as the youth, are not overlooked, stating, “Through entrepreneurship programs and digital platforms, young Nigerians are equipped with the financial tools they need to become financially independent and contribute to national growth.”