The Chartered Institute of Bankers of Nigeria (CIBN) has urged stronger cooperation among banks, government, financial regulators, development finance institutions and private investors to ensure that the N4.65 trillion raised through banking sector recapitalisation supports productive investments, industrial expansion and business growth.

The call was made at the Institute’s 2026 Fellowship Investiture held on October 31 in Lagos. The event featured discussions involving CIBN President and Chairman of Council, Dr Dele Alabi; Lagos State Governor, Babajide Sanwo-Olu; and Chief Executive Officer of the Nigerian Economic Summit Group (NESG), Dr Tayo Aduloju, on the role of stronger bank capital in Nigeria’s industrial transformation.

Speaking at the event, Alabi said the effectiveness of the recapitalisation exercise should be assessed by its contribution to the real economy rather than improvements in banks’ balance sheets.

He disclosed that 33 banks had fulfilled the new capital requirements, collectively raising N4.65 trillion in fresh capital. According to him, the funds provide a stronger financial foundation for supporting economic growth.

However, he emphasised that the next priority should be directing the expanded lending capacity towards establishing new industries, supporting business expansion, improving infrastructure, strengthening micro, small and medium-sized enterprises (MSMEs) and creating sustainable employment.

In his keynote address, Aduloju identified several structural challenges restricting access to credit for productive businesses. These include high lending costs, liquidity constraints, credit risks, short financing tenors and competition between government borrowing and private-sector funding.

Drawing on data from the Central Bank of Nigeria and other sources, he disclosed that private-sector credit accounted for 13 per cent of Nigeria’s gross domestic product in 2025, significantly below the 38.1 per cent recorded in lower-middle-income economies.

To address the financing gap, Aduloju proposed an integrated industrial financing framework that would bring together commercial banks, pension funds, insurance companies, development finance institutions, capital markets and credit guarantee institutions.

His recommendations included building specialised industrial lending capabilities within banks, extending financing tenors, introducing risk-sharing arrangements and credit guarantees, and leveraging digital cash-flow data and movable assets to strengthen credit assessments.

He also called for stronger financing partnerships across industrial value chains to improve access to capital for businesses engaged in productive activities.

On investment prospects in Lagos State, Governor Sanwo-Olu highlighted the Lekki Deep Sea Port, industrial developments along the Lekki corridor, rail and road infrastructure, as well as opportunities created by the Lagos State Electricity Law.

The governor maintained that increased bank capital must be matched with effective corporate governance, responsible lending practices, transparency and professional competence.

He further stressed the need for stronger partnerships between government, financial institutions and private investors to ensure that the additional capital available within the banking sector generates investments across different areas of the economy.

Meanwhile, CIBN is pursuing additional measures to address financing difficulties confronting MSMEs. Alabi announced that the Institute would hold its MSME Forum on December 1, 2026, with a focus on practical strategies for expanding access to finance and accelerating enterprise development.

The Institute is also advocating the establishment of MSME Hubs across Nigeria. The proposed centres are expected to give entrepreneurs access to financing, business support services, capacity development, digital tools and market opportunities.

SOURCE: msmeafricaonline