Bank recapitalisation must deliver cheaper, safer financial services – EFInA

The effectiveness of Nigeria's banking sector recapitalization hinges on its ability to deliver tangible benefits to consumers, according to Foyinsola Akinjayeju, CEO of Enhancing Financial Innovation and Access (EFInA). Speaking on CNBC, Akinjayeju emphasized that the true measure of success lies not in the amount of capital banks raise, but in how these funds are deployed to create more affordable, secure, and interoperable financial services.

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The key measure of success should not be the amount of capital raised by banks, but how effectively the funds are deployed to create more affordable, secure and interoperable financial services.

Nigerians should experience the impact of recapitalization through improved access to financial products, more reliable payment systems, and services tailored to the needs of households and businesses. Akinjayeju argued that increased bank capital must be complemented by the effective use of data and digital public infrastructure to drive financial inclusion and enhance economic decision-making. Nigeria possesses significant financial data, but connecting these datasets with productive sectors like agriculture and trade is crucial for making individuals more visible, businesses more investable, and economic activities more productive.

Akinjayeju noted that rising financial inclusion figures have not always led to stronger household welfare, as access alone hasn't necessarily improved outcomes in healthcare, education, nutrition, or economic resilience. She stressed that the relationship between banks and fintech companies is secondary to the core issue: whether financial services are dependable, affordable, accessible, and trusted by users. Consumers are less concerned about the provider's identity and more about seamless transactions, suitable products, and reliable service.

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Nigerians must feel the impact of the recapitalisation through improved access to financial products, more reliable payment systems and services that better meet the needs of households and businesses.

She called for broader metrics to assess financial inclusion success beyond national targets and account ownership. The Central Bank of Nigeria (CBN) has concluded its recapitalization program, with 33 banks raising a combined N4.65 trillion.

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Consumers are less concerned about whether a service comes from a traditional bank or a fintech firm. What matters, she said, is whether transactions work seamlessly, products are suitable for their needs and providers demonstrate reliability.