Former Central Bank of Nigeria (CBN) Governor and Emir of Kano, Muhammadu Sanusi II has publicly acknowledged that his decision to delay the entry of telecommunications companies into Nigeria’s financial services sector was a policy mistake.
Former Central Bank of Nigeria (CBN) Governor and Emir of Kano, Muhammadu Sanusi II, has publicly admitted that delaying the entry of telecommunications companies into Nigeria’s financial services industry during his tenure was a mistake.
Speaking during a fireside chat moderated by Lagos Business School Dean Prof. Olayinka David-West at the launch of the Access to Financial Services in Nigeria 2026 Survey Report in Abuja, Sanusi reflected on his time heading the central bank from 2009 to 2014. He took direct responsibility for holding back telecom operators from offering mobile financial services earlier, acknowledging that the move slowed national progress in reaching millions of unbanked citizens.
Sanusi explained that his resistance to allowing telecom operators into the banking ecosystem was rooted in caution following Nigeria’s severe banking crisis. At the time, regulators were deeply concerned about protecting depositors’ money and were hesitant to allow companies outside the central bank’s direct regulatory scope to manage large pools of consumer funds.
Recalling how he opposed pressure from international institutions like the World Bank and other industry stakeholders, Sanusi noted that while his primary motivation was safeguarding consumer savings, the policy decision ultimately proved incorrect.
He acknowledged that telecom companies possessed the expansive infrastructure and nationwide reach needed to scale financial services far more effectively than traditional banks which lack physical brick-and-mortar branches across every rural corner of the country.
Reflecting on the findings of the 2026 Access to Financial Services survey which showed national financial inclusion rising to 79% Sanusi cautioned against equating account ownership with poverty reduction. He emphasized that simply opening a digital wallet or transferring money does not mean an individual is earning a sustainable income or escaping poverty.
To build genuine economic welfare, Sanusi argued that financial services must be directly integrated into productive sectors like agriculture, trade and manufacturing.
He cited an example of groundnut farmers in Kano, pointing out that local food processors were forced to import peanuts from Argentina because Nigerian farmers lacked the technical training and quality controls required to meet production standards. The real driver of financial inclusion, he noted lies in connecting rural producers to viable markets, capital, and technical skills rather than just providing digital payment channels.
See also: AfDB Hosts Civil Society Open Day in Mauritius
Sanusi urged current regulators to prioritize controlling inflation, describing persistent price increases as the single greatest threat to household savings and wealth creation.
He pointed out that while Nigeria’s digital payment infrastructure and unified banking identification system have matured significantly, economic health depends on price stability and connecting everyday transactions to long-term savings, pensions, and insurance.
He also called for clearer boundaries among financial regulatory agencies, warning that overlapping consumer protection roles create customer confusion and undermine trust across the broader financial system.
About the Author
Praise fortune is a tech analyst and journalist based in Nigeria, Her work serves as a vital bridge between complex corporate maneuvers and the everyday reader, breaking down high-stakes financial, regulatory, and technological shifts across the African continent into clear highly readable narratives. With a deep focus on fintech, traditional banking transformation and digital infrastructure, she have become a dedicated analyst of the architects building Africa’s digital economy.
