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The Central Bank of Nigeria has officially launched three initiatives to drive financial inclusion in the country.
The initiatives were launched at the second edition of the International Financial Inclusion Conference, which was held in Lagos on Tuesday under the theme, ‘Inclusive Growth: Harnessing Inclusion for Economic Development’.
Speakers at the event highlighted the fact that women, and youths including small and medium enterprises were the most financially excluded categories of people in Nigeria.
The IFIC is Nigeria’s leading financial Inclusion event hosted by the National Financial Inclusion Governance Committees.
It is an engagement platform for regulatory institutions, financial services providers, development partners, and other financial inclusion ecosystem players and stakeholders to foster dialogue around contemporary developments, identify challenges to achieving financial inclusion goals, and propose solutions to ensure a more inclusive financial system.
The initiatives unveiled during this year’s conference include the Women Financial Inclusion Dashboard which allows regulators and policymakers to identify and prioritise gender gaps in financial services; the Women Entrepreneurs Finance Code, which is a platform designed to transform the financing landscape for women-owned Micro, Small, and Medium Enterprises globally.
The other is the Roadmap for the financial inclusion of Forcibly Displaced Persons, which is aimed at mobilising the collaborative efforts of financial institutions, regulatory bodies, government agencies, and non-governmental organisations to support FDPs in overcoming financial barriers, accessing essential services and establishing the foundation for their economic independence.
Speaking at the conference, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said that the new capital requirement for banks operating in the country would boost their ability to drive financial inclusion.
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-capitalised, enabling them to take on greater risk, particularly in underserved markets. With a stronger capital base, banks can provide more loans and financial products to MSMEs, rural communities, and other vulnerable segments that have previously struggled to access former 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.”
Highlighting some of the areas in which the World Bank is partnering with Nigeria to drive financial inclusion, the World Bank Country Director for Nigeria, Dr Ndiame Diop, said, “Three areas that the World Bank is partnering with CBN is to help address some of the constraints that stop people from full participation in the financial sector.
“The first area is addressing shortcomings in payment systems, microfinance regulation, and consumer protection. It is important to further boost the payment system to reduce transaction failures. In 2023, 40 per cent of failed transactions were unresolved.
“The persistence of transaction failures implies that citizens and organisations struggle to maintain their operations and their efficiency. It is equally important to facilitate a well-regulated microfinance sector by adopting robust risk-based approaches and leveraging modern technology.
“Finally, it is important to enhance consumer protection and address emerging consumer risks. An inclusive data system is critical. The World Bank is happy to support the initiatives being launched at today’s event, the Women Entrepreneurs Finance Code. This and other resources are not merely resources; they are tools and pathways to change and reducing the gender gap.”
Lagos State Governor, Babajide Sanwo-Olu, who was represented by the Deputy Governor, Obafemi Hamzat, posited that the $1tn economy drive of President Bola Tinubu was essential to driving inclusion.
He said, “When the president said that we must have a $1tn economy, it is not a joke. It is the only way we can survive.“ The bottom line is what do we do to achieve it? We are talking of financial inclusion but I cannot include you in something that doesn’t exist.
“We must ensure that the basket in Nigeria must be bigger. As we put all these together, we must understand that technology must be accompanied by a human-centred approach that values the culture and aspiration of the people it is designed to serve.”
In his opening remarks, the CBN Deputy Governor, (Financial System Stability), Philip Ikeazor, noted, “It is clear that achieving 95 per cent financial inclusion in Nigeria requires concerted efforts from all stakeholders—government agencies, financial institutions, financial technology companies, development organisations, and civil societies.
He stated that the Central Bank is committed to fostering these collaborations to ensure that financial inclusion initiatives are effectively implemented across the country.
“Today’s Conference offers an invaluable opportunity to share insights, challenge assumptions, and explore new strategies that will bring us closer to achieving our shared goal of inclusive economic growth.
“In closing, 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 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.”
According to Enhancing Financial Innovation and Access, an organisation that promotes financial inclusion, Nigeria’s financially included population rose from 68 per cent in 2020 to 74 per cent in 2023.
