The Chartered Institute of Bankers of Nigeria (CIBN) has urged banks to channel more of their capital into financing micro, small and medium-sized enterprises (MSMEs) and manufacturers to stimulate economic growth and create jobs.
The President and Chairman of Council of CIBN, Dele Alabi, made the call at the institute’s 2026 Fellowship Investiture held in Victoria Island, Lagos, on Saturday.
Speaking on the theme, “Bank Recapitalisation: Leveraging New Bank Capital for Nigeria’s Industrial Transformation,” Alabi said the success of the banking sector’s recapitalisation exercise would depend on how effectively the additional capital was deployed to support productive sectors of the economy.
He said banks could no longer concentrate their lending on large corporations but must extend more credit to smaller businesses, which play a significant role in economic growth and employment generation.
“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 said.
Alabi noted that MSMEs account for about 46 per cent of Nigeria’s Gross Domestic Product, 96 per cent of businesses and 86 per cent of employment, stressing that appropriate lending structures could make financing the sector both secured and profitable.
He disclosed that the institute was planning its first MSME forum for December 1 to address challenges affecting access to finance and enterprise development.
The CIBN president further disclosed that the institute honoured 755 banking professionals at the event for their contributions to the banking industry and national economic development.
The award recipients comprised 18 honorary fellows, 460 elected fellows and 277 honorary senior members.
Among those honoured were the Deputy Chief of Staff to the Lagos State Governor, Samuel Egube; Vice Chairman of Famfa Oil Limited, Folorunsho Alakija; Secretary to the Ogun State Government, Tokunbo Talabi; and Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku.
Alabi said their achievements, leadership and dedication had contributed to the advancement of the banking profession and the country’s economic growth.
He said lending rates ranged from 19 per cent for prime borrowers to 32.6 per cent for other borrowers, while treasury bills offered returns of about 15.5 per cent without credit risks.
He also raised concerns over increasing government borrowing, which he said had risen by 63 per cent in the year to September, warning that it could limit credit available to businesses.
The NESG chief called for stronger collaboration between banks, government and regulators to reduce lending risks and improve access to financing for manufacturing, agriculture and MSMEs.
He also urged the government to provide reliable infrastructure, clear regulatory frameworks, credit guarantees and investment-ready projects to attract long-term financing.
