New Capital Requirement for Nigerian Banks to Boost Financial Inclusion, Says CBN Governor
CBN Governor, the Governor of the Central Bank of Nigeria (CBN), has announced that the recently introduced higher capital requirements for banks will significantly enhance their ability to promote financial inclusion in the country. He made the statement at the second International Financial Inclusion Conference in Lagos on Tuesday, where he emphasized the importance of financial inclusion in driving inclusive growth.
Cardoso explained that the new minimum capital requirements aim to strengthen the financial capacity of banks, enabling them to take on higher risks, particularly in underserved markets. “This strategic move ensures that banks are better capitalized, allowing them to provide more loans and financial products to key sectors such as micro, small, and medium-sized enterprises (MSMEs), rural communities, and other vulnerable groups,” he said.
The governor highlighted that this policy would not only enhance the stability of the financial system but also serve as a catalyst for broader economic development. By providing more credit to MSMEs, banks will help foster job creation, boost productivity, and promote economic growth. Additionally, the increased capital base will allow banks to invest in technology and digital financial services, such as mobile money and agent banking, which are crucial for reaching remote and underserved areas.
“Financial inclusion has the potential to unlock significant economic growth, particularly through the empowerment of SMEs, women, and other vulnerable groups,” Cardoso noted. He pointed out that SMEs, which account for over 80% of employment in Nigeria, face major challenges in accessing the necessary credit for growth and expansion. Financial inclusion for SMEs, he emphasized, is key to unlocking the full potential of the sector.
Cardoso also underscored the critical role of women in driving inclusive growth. Studies show that when women are financially empowered, they reinvest in their families and communities, creating broader social and economic benefits. However, despite this, women in Nigeria remain disproportionately excluded from formal financial services. To address this, the CBN has introduced policies aimed at closing gender gaps and improving access to financial services for women and youth, particularly through digital platforms.
The governor concluded by reiterating that the adoption of digital payment channels, especially mobile technology, is one of the most transformative tools for achieving financial inclusion. According to Enhancing Financial Innovation and Access (EFInA), a key player in promoting financial inclusion, the percentage of financially included Nigerians has risen from 68% in 2020 to 74% in 2023.
This increase in financial inclusion, Cardoso stated, represents a critical step toward fostering economic development and creating a more inclusive financial ecosystem for all Nigerians.
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