The Central Bank of Nigeria (CBN) on Tuesday reiterated its commitment to fostering financial inclusion as a key strategy for achieving macroeconomic stability in the country.
CBN Governor, Olayemi Cardoso, said this at the 2024 International Financial Inclusion Conference in Lagos with the theme, “Inclusive Growth: Harnessing Financial Inclusion for Economic Development”.
Cardoso also said that the Access to Finance (A2F) survey report presented by Enhancing Financial Innovation and Access (EFInA) in 2023 revealed that 26 per cent of Nigeria’s adult population remained financially excluded.
He noted that financial inclusion has the potential to unlock untapped economic potential, particularly for underserved groups.
“Financial inclusion is critical for poverty reduction, income equality, employment generation, and overall productivity,” Cardoso said.
He acknowledged that one of the biggest challenges in achieving the nation’s financial inclusion vision was integrating more citizens into the formal financial system.
According to him, since the launch of the National Financial Inclusion Strategy (NFIS) in 2012, the central bank, in collaboration with various agencies, has introduced policies and initiatives aimed at reducing financial exclusion.
“These initiatives have been guided by the vision of ensuring every Nigerian has access to affordable financial services, from basic savings accounts to micro pension and microinsurance offered by other regulated non-bank financial institutions to digital payment platforms.
“The Central Bank of Nigeria is keen on ensuring its Financial inclusion policies and initiatives address the peculiar access to finance barriers for underserved populations, particularly women, youth, and MSMEs.
“The importance of this mission cannot be overstated, as I have reiterated that financial inclusion is foundational to Nigeria’s sustainable economic development,” he said.
He added that the regulator, in March, introduced new minimum capital requirements for commercial banks as part of efforts to deepen financial inclusion.
He explained that the advantages of bank recapitalisation included stronger capital bases, to enhance job creation and productivity, more loans to Micro, Small and Medium Enterprises (MSMEs), rural communities and other vulnerable segments of society.
He also noted that MSMEs account for over 80 per cent of employment in Nigeria, but added that, yet, many face difficulties in accessing 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,” he said.
He added that Nigerian women play a critical role in driving inclusive growth but were disproportionately excluded from the formal financial system, hence CBN’s interventions for women and youths.
He explained that interventions were through frameworks aimed at closing gender gaps and regulatory support for digital platforms that offer easier access to financial services for these vulnerable groups.
“With programmes aimed at financial literacy, CBN is also empowering young Nigerians to become financially independent, fostering entrepreneurship, and driving economic growth across the country.
“One of the most transformative tools for financial inclusion has been the adoption of digital payment channels leveraging mobile technology,” he said.
He called for collaborations and partnerships towards building a financial ecosystem that ensures shared prosperity for all Nigerians
In his opening remarks, Mr Philip Ikeazor, Deputy Governor, Financial System Stability, CBN emphasised CBN’s commitment to financial inclusion, leveraging digital financial services to reach the unbanked.
Ikeazor said that since the launch of the National Financial Inclusion Strategy in 2012, Nigeria had made significant strides in reducing financial exclusion rates from 46.3 per cent in 2010 to 26 per cent in 2023.
He, however, noted that over 28 million Nigerians remained without access to formal financial products and services, particularly in underserved regions.
Ikeazor highlighted some targeted programmes undertaken by CBN to include Financial Inclusion Drives, reaching underserved communities and promoting financial literacy.
“Also, we have the Women Entrepreneurs Finance Initiative (We-Fi) Code which provides female entrepreneurs with access to financial resources.
“Entrepreneurship programmes and digital platforms equip young Nigerians with financial tools and addressing financial exclusion rates in northern Nigeria through infrastructure development and economic empowerment,” he said.
Ikeazor called for collaborative efforts to achieve 95 per cent financial inclusion target set by CBN.
According to him, as Nigeria continues on its journey to inclusive economic growth, the collaboration between the central bank, stakeholders, and the government remains crucial. (NAN)
