CBN activates fresh initiatives, targets 95 percent financial inclusion in economy

*The Central Bank of Nigeria, launches three new initiatives as at the 2nd Edition of the International Financial Inclusion Conference, in Lagos, to ensure a more inclusive financial system in the country

Isola Moses | ConsumerConnect

As part of the ongoing affirms at attaining financial inclusion goals to ensure a more inclusive financial system, the Central Bank of Nigeria (CBN) has officially launched three initiatives to drive financial inclusion in the country.

The CBN launched the fresh initiatives Tuesday, November 12, 2024, at the second edition of the International Financial Inclusion Conference (IFIC), in Lagos.

The Bankers’ Bank activated the new solutions at the event with the theme, “Inclusive Growth: Harnessing Inclusion for Economic Development”.

The forum attracted various speakers and stakeholders, who highlighted that women, and youths, including small and medium enterprises (SMEs) constitute the “most financially excluded categories of people in Nigeria”.

ConsumerConnect reports International Financial Inclusion Conference is Nigeria’s leading financial Inclusion event hosted by the National Financial Inclusion Governance Committees.

IFIC is an engagement platform for regulatory institutions, financial services providers, development partners, and other financial inclusion ecosystem players and stakeholders.

The overarching objective of the forum is 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.

Nexus between new banks recapitalisation and financial inclusion, by Cardoso

In his address on the occasion, Dr. Olayemi Cardoso, Governor of CBN, said that the new capital requirement for banks operating in the country would boost their ability to drive financial inclusion.

Cardoso 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.”

The CBN Governor noted: “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.”

He also stated: “Furthermore, with increased capital, banks can invest in technology and innovation crucial for driving digital financial services such as mobile money and agent banking.”

Earlier in his opening remarks, Philip Ikeazor, CBN Deputy Governor (Financial System Stability), had noted that “it is clear that achieving 95 percent financial inclusion in Nigeria requires concerted efforts from all stakeholders—government agencies, financial institutions, financial technology companies, development organisations, and civil societies.”

Ikeazor affirmed the Central Bank of Nigeria is committed to fostering these collaborations to ensure that financial inclusion initiatives are effectively implemented across the country.

The CBN Deputy Governor also said: “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.”

Ikeazor equally assured the stakeholders that the banking sector regulator would 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 Nigerian consumers.

Initiatives will boost payment system, reduce transaction failures: World Bank chief

Speaking at the event also, Dr. Ndiame Diop, World Bank Country Director for Nigeria, highlighted some of the areas in which the World Bank is partnering with Nigeria to drive financial inclusion.

Dr. 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.”

He also noted: “It is important to further boost the payment system to reduce transaction failures.

“In 2023, 40 percent of failed transactions were unresolved.

“The persistence of transaction failures implies that citizens and organisations struggle to maintain their operations and their efficiency.”

The World Bank Country Director for Nigeria stressed 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,” stated he.

Governor Babajide Sanwo-Olu of Lagos State, represented at the forum by Deputy Governor Dr. Obafemi Hamzat, emphasised that the $1tn economy drive of President Bola Tinubu is essential to driving inclusion.

Sanwo-Olu 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.’

The Lagos Governor stated: “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.”

Meanwhile, Enhancing Financial Innovation and Access, an organisation that promotes financial inclusion, has disclosed the Nigerian financially included population increased from 68 percent in 2020 to 74 percent 2023, report said.

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