The governor, Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the banks new minimum capital requirements set to enable financial institutions provide more loans and financial products to Micro, Small, and Medium Enterprises (MSMES) and rural communities.
Cardoso who disclosed this while addressing stakeholders, financial experts at the 2024 international Financial inclusion conference said that a well capitalised financial institutions have opportunity to take greater risk and provide funds to other vulnerable segments that have previously struggled to access formal financial services.
He said banks new capital requirements policy not only strengthens financial stability but also serves as a catalyst for inclusive growth.
Speaking on the themed ‘Inclusive Growth: Harnessing Financial Inclusion for Economic Development’ he said “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity,” adding that with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking.
The governor pointed out that these technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas.
He said financial inclusion has the potential to unlock significant economic growth, particularly through the empowerment of small and medium-sized enterprises (SMEs), women and other vulnerable segments of the population, noting that SMEs are responsible for over 80 per cent of employment in Nigeria, yet many struggle to access 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.
“One of the most transformative tools for financial inclusion has been the adoption of digital payment channels leveraging mobile technology.
” Nigeria’s growing mobile phone penetration provides an unprecedented opportunity to expand access to financial services.
“Interoperable payment platforms have enabled millions of Nigerians to send payments, save, and access credit without traditional bank accounts.
