The Central Bank of Nigeria’s (CBN) new capital requirements for banks will empower financial institutions to boost financial inclusion and foster economic growth, announced Governor Olayemi Cardoso at the International Financial Inclusion Conference in Lagos. Speaking at the event themed “Inclusive Growth: Harnessing Financial Inclusion for Economic Development,” Cardoso emphasized that the updated capital regulations will enhance banks’ ability to reach underserved communities and support micro, small, and medium enterprises (MSMEs).

“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-capitalized, enabling them to take on greater risk, particularly in underserved markets,” Cardoso remarked. He noted that with a stronger financial base, banks can better provide loans and financial products to MSMEs, rural areas, and other segments of society that often lack access to formal financial services.

Cardoso highlighted the CBN’s vision for a financially inclusive Nigeria where MSMEs and vulnerable populations play a central role in driving economic growth. By equipping banks with more capital, CBN aims to facilitate broader credit access for small enterprises, fueling job creation and productivity. This policy also supports banks in advancing technology for digital services like mobile money and agent banking, essential tools for reaching remote communities and reducing economic disparities.

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Financial inclusion has vast potential to empower key segments of society, especially SMEs and women, Cardoso added. “SMEs are responsible for over 80% of employment in Nigeria, yet many struggle to access the credit needed for expansion. Financial inclusion for SMEs is essential to unlocking the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises.”

Addressing the need for gender inclusivity, Cardoso emphasized that women, when financially empowered, reinvest in their families and communities, resulting in widespread social and economic benefits. However, Nigerian women face disproportionate exclusion from formal financial services. To address this, the CBN has implemented frameworks to close gender gaps and promote digital financial solutions that expand access for women and youth.

Digital payment systems and mobile technology remain pivotal in CBN’s strategy to increase financial inclusion across Nigeria. According to data from Enhancing Financial Innovation and Access, financial inclusion in Nigeria has grown from 68% in 2020 to 74% in 2023—a development the CBN aims to accelerate through its new capital policy and inclusive growth initiatives.