President Bola Tinubu has called on Nigerian commercial banks to channel their newly expanded post-recapitalisation resources into affordable credit for real-sector businesses, warning that larger balance sheets hold little value if productive industries remain starved of capital. Speaking through the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria in Abuja, the President urged financial institutions to shift away from heavily relying on government securities and instead focus on funding investment, business expansion, and job creation. He noted that while macroeconomic stability and credibility are returning, the ultimate destination remains economic prosperity for everyday citizens, which requires a resilient financial system where MSMEs and manufacturers can access affordable loans. To support this transition and reduce lending risks for private enterprise, the government is expanding guarantees, blended finance, and credit enhancements through initiatives like the National Credit Guarantee Company.
Industry leaders at the conference echoed the need to pivot toward real-sector funding, highlighting the massive capital capacity now available. Oliver Alawuba, Chairman of the Body of Bank CEOs and Group Managing Director of UBA Plc, revealed that Nigerian banks raised N6.4tn during the recapitalisation process, strengthening their risk-management capacity to support large-scale national projects. CIBN President Dr. Dele Alabi confirmed that 33 banks met the revised minimum capital requirements by March 2026, raising N4.65tn with about 72% coming directly from domestic investors. However, World Bank representative Bertine Kamphuis highlighted a persistent credit deficit, pointing out that domestic private-sector credit sits at just 13% of GDP, with MSMEs receiving roughly 1% and agriculture receiving 6%, despite these sectors generating the majority of employment. Concluding the address, central bank and state officials including CBN Governor Olayemi Cardoso and Lagos State Governor Babajide Sanwo-Olu reassured stakeholders that as macroeconomic stability takes hold, the true measure of success will be directing capital where it directly improves conditions for businesses, farmers, and households across the nation.
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