Why I regret delaying telcos’ entry into Nigeria’s financial sector — Sanusi

The Emir of Kano, Muhammadu Sanusi II, has expressed regret over delaying the entry of telecommunications companies, popularly known as telcos, into Nigeria’s financial services sector while he was governor of the Central Bank of Nigeria.

Sanusi made the disclosure on Wednesday at the launch of the 2026 Access to Financial Services in Nigeria survey by Enhancing Financial Innovation & Access, where he spoke about the need for Nigeria to deepen financial inclusion and ensure that financial services contribute meaningfully to economic development.

The former CBN governor said telecommunications companies already had the infrastructure and extensive reach that could have helped accelerate financial inclusion across the country, particularly in underserved and rural communities.

“One of my regrets as CBN governor was delaying telcos’ entry into financial services,” he said.

Sanusi noted that the ability of telecommunications companies to reach millions of Nigerians through their existing networks could have provided an important avenue for extending financial services to people who were outside the conventional banking system.

He, however, cautioned that financial inclusion should not be measured solely by the number of people who have bank accounts or can transfer money.

“Opening an account and moving money is not the same thing as earning money or moving people out of poverty,” he said.

Financial inclusion must support the real economy

Sanusi argued that financial services should be connected to the real economy, particularly agriculture, manufacturing and other productive sectors capable of creating jobs, generating income and improving livelihoods.

He illustrated his point with the situation involving groundnut farmers in Kano, saying a company that produces ready-to-use therapeutic food for malnourished children had been forced to import peanuts from Argentina because local farmers were unable to produce the commodity to the required quality.

According to him, simply putting farmers on digital financial platforms would not address the underlying challenge.

He said farmers needed to be trained, their productivity improved and stronger links established between them, markets and manufacturers.

Sanusi stressed that financial inclusion should therefore go beyond opening accounts and facilitating transactions to creating systems that connect producers with buyers and productive opportunities.

He said farmers should be able to access financial services in a way that helps them increase production, meet required standards and participate effectively in supply chains.

The traditional ruler also urged the CBN to prioritise price stability, warning that inflation remained a major threat to savings and wealth creation.

“There is no enemy to savings, no enemy to wealth that is bigger than inflation,” Sanusi said.

Using fintech data to expand financial services

Sanusi also advocated the use of transaction data generated by fintech companies and payment service providers to develop savings, pension and insurance products for Nigerians who may not have conventional banking relationships.

He said platforms with extensive transaction data and strong reach in rural communities could potentially use such information to develop financial products suited to the needs and transaction patterns of their customers.

According to him, small amounts deducted from transactions could be channelled into savings, pensions or insurance where appropriate systems were available.

Sanusi suggested that even N100 could be deducted from a transaction and directed towards savings or insurance, potentially allowing people with limited incomes to gradually build financial protection.

He further called for insurance products to be designed around the specific risks faced by different groups of Nigerians.

He cited market traders who could be protected against risks such as fire outbreaks and farmers who could obtain insurance against crop failures.

Sanusi said such initiatives could make financial inclusion more meaningful by ensuring that Nigerians are not only able to access financial services but can also use them to save, manage risks and participate more effectively in productive economic activities.

His remarks at the launch of the 2026 A2F survey highlighted the need for Nigeria’s financial inclusion efforts to move beyond access to accounts and digital payments and focus increasingly on how financial services can support income generation, wealth creation and economic participation.