CIBN urges banks to increase lending to MSMEs, honours 755 professionals

The President Chartered Institute of Bankers of Nigeria (CIBN), Dele Alabi, has urged Nigerian banks to increase lending to micro, small and medium-sized enterprises (MSMEs), so as to generate increased returns for banks after the business recapitalisation.

Mr Alabi, who can also be the CIBN’s Chairman of Council, said this on the 2026 Fellowship Investiture of CIBN, held in Victoria Island, Lagos, on Saturday. The theme of the occasion was “Bank Recapitalisation: Leveraging New Bank Capital for Nigeria’s Industrial Transformation.”

He mentioned the success of the banking sector recapitalisation train, which ended on 31 March, would rely on how successfully the brand new capital is deployed to assist productive sectors of the financial system.

Mr Alabi mentioned banks wanted to look past massive firms and increase financing to micro, small and medium-sized enterprises (MSMEs), which he described as vital to Nigeria’s financial development and employment.

He mentioned lending to MSMEs may very well be each secured and worthwhile if banks developed applicable constructions and infrastructure to handle the related dangers.

“Banks no longer have the luxury of focusing only on the top-tier sectors of the economy, on the Mobiles, on the Unilevers, on the Shells,” he mentioned.

The CIBN boss added that the institute was planning its first MSME discussion board for 1 December, to advance sensible options for bettering entry to finance and supporting enterprise development.

Mr Alabi cited estimates that MSMEs account for about 46 per cent of Nigeria’s gross home product, represent 96 per cent of companies and generate 86 per cent of employment.

He additionally mentioned the institute was contemplating the institution of MSME hubs throughout states, drawing on fashions applied in international locations together with China, India and the United Kingdom.

755 CIBN honorees

The CIBN President mentioned the institute honoured 755 banking professionals for his or her contributions to the banking business and Nigeria’s financial growth.

The honourees comprised 18 honorary fellows, 460 elected fellows and 277 honorary senior members.

Among the distinguished honorary fellows honored at three occasions Samuel Egube, Deputy Chief of Staff, Lagos State, Folorunsho Alakija, Vice Chairman of Famfa Oil Limited, Tokunbo Talabi, Secretary to the Ogun State Government; and Olubunmi Kuku, Managing Director/Chief Executive of the Federal Airports Authority of Nigeria.

Mr Alabi mentioned their achievements, management and dedication had helped advance the banking occupation and contributed to the nation’s financial development.

He additionally disclosed that the institute’s banking examinations had been now carried out in 13 African international locations: Sierra Leone, The Gambia, Liberia, Congo, Ghana, Botswana, Cameroon, Namibia, Zambia, Rwanda, Mali, Mozambique and Kenya.

He mentioned Sierra Leone had the best variety of chartered bankers among the many 13 international locations, describing the institute’s rising worldwide attain as proof of its increasing relevance throughout Africa.

Affordable long-term financing

At the occasion, the Governor of Lagos State, Babajide Sanwo-Olu, mentioned the banking sector’s recapitalisation ought to strengthen lenders’ capability to stand up to financial pressures and finance bigger transactions.

He mentioned the true measure of success could be the extent to which the extra capital supported productive companies, industrial enlargement and financial alternatives for Nigerians.

“One of the greatest challenges facing Nigerian businesses remains access to affordable, long-term financing. We’ve been hearing this for 20, 25 years. And so we need to do something about it,” he mentioned.

Mr Sanwo-Olu mentioned producers wanted financing to purchase equipment, increase manufacturing and compete internationally, whereas agricultural companies required capital to develop storage, processing and distribution capability.

He additionally highlighted alternatives in infrastructure and electrical energy, noting that Lagos State’s electrical energy regulation might appeal to funding into the facility sector and assist manufacturing, logistics and commerce.

The governor mentioned the Lagos State Employment Trust Fund had supported greater than 40,000 small companies by means of grants and single-digit loans.

According to him, the initiative had additionally helped create between 200,000 and 250,000 jobs throughout the state.

Mr Sanwo-Olu urged banks, authorities and the personal sector to transfer past rising the supply of capital and concentrate on making certain that the funds generated significant financial exercise.

“We must move from simply having more capital available to making this capital work for our economy,” he mentioned.

Credits’ issues

The Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Tayo Aduloju, additionally raised issues over a one-third decline in financial institution credit score to producers since December 2024, urging lenders to channel extra of their capital into productive sectors of the Nigerian financial system.

Mr Aduloju mentioned credit score to producers had fallen from N8.5 trillion in December 2024 to N5.6 trillion, regardless of the profitable completion of the banking sector recapitalisation train.

According to the NESG chief, the increase in banks’ capital had not translated into the dimensions of financing wanted to assist industrial development, with lending nonetheless concentrated in sectors resembling oil and gasoline, finance and insurance coverage.

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He mentioned the 2 sectors accounted for about 46 per cent of financial institution credit score, whereas manufacturing obtained solely 8.7 per cent.

“Trade has overtaken manufacturing. So, ladies and gentlemen, we are financing import and distribution of goods more readily than their production in Nigeria,” he mentioned.

Mr Aduloju mentioned the price of borrowing, liquidity constraints, lending dangers and the brief length of obtainable financing had been among the many main obstacles stopping companies from accessing credit score.

He famous that lending charges ranged from 19 per cent for prime debtors to 32.6 per cent for different debtors, whereas treasury payments provided returns of about 15.5 per cent with out credit score danger.

He additionally expressed concern over the expansion in authorities borrowing, saying credit score to the federal government elevated by 63 per cent within the 12 months to September.

“When the sovereign borrows at this pace, it’s not a competition with business. It’s no competition. Government will win,” he mentioned.

Mr Aduloju argued that banks would wish to work with authorities and regulators to scale back the dangers related to lending to productive sectors, significantly manufacturing, agriculture and small companies.

He mentioned Nigeria wanted better-prepared funding initiatives, dependable infrastructure, clear regulatory frameworks and stronger credit score ensures to appeal to long-term financing.

He additionally urged the federal government to clear up the nationwide asset register, saying the absence of correctly documented and investment-ready initiatives was stopping monetary establishments from financing some alternatives.