CIBN unveils MSME Forum, targets finance hubs

The Chartered Institute of Bankers of Nigeria has called for stronger collaboration among banks,  government, regulators, development finance institutions and private investors to ensure that the N4.65tn raised through Nigeria’s banking sector recapitalisation translates into productive investment, industrial expansion and business growth.

 The call was made at the Institute’s 2026 Fellowship Investiture, held on 31 October, 2026, in Lagos, where the President and Chairman of Council, CIBN, Dr Dele Alabi, Lagos State Governor, Mr Babajide Sanwo-Olu, and the Chief Executive Officer of the Nigerian Economic Summit Group, Dr Tayo Aduloju, examined the opportunities and challenges of deploying stronger bank capital to drive Nigeria’s industrial transformation.

Addressing the gathering, Dr Alabi emphasised that the success of recapitalisation must be measured by its impact on the real economy, not merely by the strength of banks’ balance sheets. He noted that the banking industry had mobilised N4.65tn in fresh capital, with 33 banks meeting the new capital requirements, providing a stronger foundation for financing economic growth. However, he stressed that the critical task ahead was to translate this enhanced capacity into new industries, expanded businesses, improved infrastructure, thriving Micro, Small and Medium-sized Enterprises and sustainable employment.

 The need to bridge the gap between stronger bank capital and access to productive-sector financing was a central focus of the keynote address delivered by Dr Aduloju.

Drawing on data from the Central Bank of Nigeria and other credible sources, the NESG CEO remarked that rather than treating recapitalisation as an end in itself,  the structural constraints limiting the flow of credit to productive businesses should be the focus.

 These included high lending costs, liquidity constraints, credit risks, short financing tenors, and the increasing competition between government borrowing and private-sector financing. The presentation also highlighted the not-so-deep private-sector credit in Nigeria, which stood at 13 per cent of GDP in 2025, compared with 38.1 per cent in lower-middle-income economies.

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 Dr Aduloju consequently advocated a more integrated industrial financing framework that brings together commercial banks, pension funds, insurance companies, development finance institutions, capital markets and credit guarantee institutions. Other recommendations included the development of specialist industrial lending capabilities by banks, longer-tenor financing, risk-sharing arrangements, credit guarantees, improved use of digital cash-flow data and movable assets in credit assessment, as well as stronger financing partnerships across industrial value chains.

 Reinforcing the need for practical action, Governor Sanwo-Olu identified investment opportunities around the Lekki Deep Sea Port, industrial activities along the Lekki corridor, rail and road infrastructure, and the opportunities created by the Lagos State Electricity Law. He stressed that stronger bank capital must be accompanied by sound corporate governance, responsible lending, transparency and professional competence.

 He called for closer collaboration among government, financial institutions and private investors, noting that Nigeria must move from simply having more capital in its banks to putting more capital to work in the economy.

 In a clear demonstration of its commitment to translating the conversation into practical interventions, CIBN announced plans to host its MSME Forum on 1 December 2026.

According to Dr Alabi, the forum will advance practical solutions for expanding access to finance and accelerating enterprise growth. The Institute is also advocating the establishment of MSME Hubs across Nigeria to provide entrepreneurs with access to financing, business support services, capacity development, digital tools and market opportunities.