Sanusi admits blocking telcos from banking was wrong

Former Central Bank of Nigeria Governor and Emir of Kano, Muhammadu Sanusi II, has admitted that his decision to limit telecommunications firms' entry into Nigeria's financial services industry while he was in charge was a mistake. This policy impeded Nigeria's efforts to bring financial services to underprivileged citizens. During a discussion at the launch of the Access to Financial Services in Nigeria 2026 Survey Report, Sanusi acknowledged that his opposition was motivated by concerns over depositor safety following a banking crisis.

Despite this, he admitted that later developments demonstrated that telecom and technology firms were crucial in extending financial services to underserved Nigerians. Sanusi argued that had he permitted telcos to participate earlier, Nigeria would have made more substantial progress in extending financial services to unbanked citizens.

The 2026 Access to Financial Services survey showed a rise in financial inclusion to 79 percent, while the number of financially excluded individuals decreased to 21 percent. Sanusi stressed that expanding access to bank accounts and digital payments should not be mistaken for improvements in income or economic welfare. He emphasized that financial services should be better linked to activities in the real economy, such as agriculture, manufacturing, and trade.

The former CBN governor also advocated for the use of existing digital payment infrastructure to broaden access to savings, pensions, and insurance. He recommended that digital financial service providers use vast transaction data and networks to develop pension and savings products for informal-sector workers, enabling them to save and invest incrementally.

Sanusi stressed the necessity of maintaining price stability, as inflation poses the most significant threat to household savings and wealth.