Former Nigerian central bank chief admits mistake over allowing telecoms in
Former Governor of the Central Bank of Nigeria Sanusi Lamido Sanusi said in Abuja that his decision to delay the entry of telecommunications companies into financial services slowed financial inclusion in the country. He said this during a discussion on financial inclusion, Premium Times Nigeria reports.
Concerns after the banking crisis
Sanusi headed the Central Bank of Nigeria from 2009 until his suspension in February 2014. According to him, the decision not to allow telecommunications companies into the financial sector was linked to the 2009 banking crisis, concerns about illicit funds, and control over large volumes of money.
The former head of the regulator explained that he did not want to grant such access to companies for which the Central Bank was not the primary regulator. At the same time, he acknowledged that the decision, which he considered justified at the time, ultimately had unintended consequences and was a mistake. Sanusi also said that he opposed the proposal to allow telecommunications companies into financial services, despite the position of the World Bank, Stanbic, and other participants in the discussion.
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The role of telecoms and fintech
In Sanusi's view, allowing telecommunications companies in earlier could have accelerated the expansion of financial services. He noted that banks do not have as broad a local reach as telecommunications companies, which is why progress in financial inclusion in recent years has been greater than before.
Sanusi also called on the Central Bank to use data from fintech and payment companies to develop savings, pension, and insurance products for low-income Nigerians. He stressed the need for financial literacy and the gradual accumulation of savings through small regular contributions.
The former central bank chief also advocated for a clearer division of responsibility among financial regulators, particularly in consumer protection. In his view, overlapping powers of the Central Bank and the Federal Competition and Consumer Protection Commission may confuse clients of financial institutions.
