Barbara Bako, Abuja.
President Bola Tinubu has called on Nigerian banks to use the stronger capital base created by the recent recapitalisation to expand lending to businesses and other sectors capable of driving economic growth.
Speaking at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja on Tuesday, Tinubu said the success of the recapitalisation should ultimately be measured by its impact on access to finance, investment and job creation.
The President, who was represented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said banks needed to increase funding for businesses, while reducing the economy’s dependence on government borrowing as fiscal conditions improve.
He said the government was introducing measures including guarantees, risk-sharing arrangements and other credit-support mechanisms to encourage banks to lend to productive businesses.
Tinubu stressed that simply having larger banks was not enough if businesses continued to face high barriers to accessing credit.
Chairman of the Body of Bank CEOs and Group Managing Director of United Bank for Africa Plc, Oliver Alawuba, said Nigerian banks raised N6.4 trillion during the recapitalisation exercise, giving them greater capacity to support major investments.
He said the industry must now deploy the additional capital towards financing MSMEs, agriculture, manufacturing, infrastructure and exports.
CIBN President and Chairman of Council, Dr Dele Alabi, disclosed that 33 banks had satisfied the new minimum capital requirements by March 2026, with the exercise generating about N4.65 trillion.
Domestic investors accounted for roughly 72 per cent of the funds raised.
Representing CBN Governor Olayemi Cardoso, Deputy Governor, Economic Policy Directorate, Philip Ikeazor, said the successful recapitalisation reflected the growing capacity of Nigeria’s domestic capital market.
Cardoso also reaffirmed the CBN’s collaboration with CIBN in promoting professionalism and strengthening the financial sector.
He acknowledged that Nigerians were waiting to see the benefits of recent improvements in the economy reflected in their daily lives, saying: “The question that remains on everyone’s mind is, when will the common man feel the full benefits that is on its way?”
Good production costs money and you can support what we do. Please find our details below👇🏾👇🏾👇🏾 Account name: MARKET ONLINE MEDIA Bank: UBA Acc No: 1026401930.
