The Central Bank of Nigeria (CBN) and financial‑services stakeholders argue that a robust cashless policy can expand loan access for medium, small and micro‑scale enterprises (MSMEs). Speaking at a virtual event hosted by Deji Olamide, CEO/MD of First Central Credit Bureau, the participants highlighted the challenges facing Nigeria’s cashless system while emphasizing its potential benefits.
Haruna Bala Mustapha, the CBN Director of Banking Supervision, clarified that the policy’s goal is not to eliminate cash but to reduce its use and promote electronic payments. Represented by Adeniyi Adekunle, Mustapha noted that although Nigeria remains a cash‑dominant economy, the costs and risks associated with cash transactions are burdensome. He observed that the cashless policy has fostered transparency, eased business operations and improved loan access for MSMEs, allowing faster, online payments from home. However, he acknowledged that the infrastructure for seamless digital payments is still developing, and the CBN is working with payment‑solution providers to upgrade the payment gateway for higher volumes.
Mustapha listed several advantages of the cashless policy: cost savings from reduced cash handling, increased transparency and accountability, and better insight into borrowers’ credit histories. He affirmed the CBN’s commitment to leveraging these benefits to drive financial inclusion and promote Nigeria’s economic growth.
Ade Bajomo, President of the FinTech Association of Nigeria, echoed the sentiment, stating that cashless initiatives can revolutionize credit allocation in developing nations. By creating a digital trail, the policy reduces credit‑assessment costs, enhances transparency, speeds up credit scoring and loan processing, improves risk management and promotes financial inclusion. Bajomo emphasized that these outcomes enable individuals and MSMEs to obtain credit, spur economic growth, raise living standards and strengthen the role of credit bureaus.
Ikemefula Nwachukwu, Head of Personal Banking at First Bank Nigeria, explained that the CBN’s open‑banking framework levels the data‑access playing field, influencing credit‑score calculations for lenders. He noted that banks and fintechs are increasingly active in nano‑ and micro‑lending thanks to greater data availability. Predictive analytics now allow lenders to estimate repayment probabilities and take proactive measures to ensure loan repayment.
Finally, Joshua Ukute, National President of the National Association of Microfinance Banks, urged stakeholders to harness the cashless policy to develop innovative financial products. By doing so, microfinance banks can contribute to deeper financial inclusion and broader financial development.
