- Share
- Tweet
President Bola Tinubu has challenged Nigerian banks to shift their focus from financing government borrowing to providing affordable credit to businesses and productive sectors of the economy
Tinubu made the call at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, where he was represented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele
The President said Nigeria’s economic reforms had helped restore macroeconomic stability and improve investor confidence, but stressed that the next phase must convert these gains into increased investment, production, job creation and improved living standards
“The current phase of our reform journey is accelerating the conversion of stability into investment, investment into production, production into jobs, and growth into improved living standards,” he said
Tinubu urged financial institutions to move “from intermediation to transformation”, arguing that the performance of banks should not be measured solely by balance-sheet growth, profitability and shareholder returns
He said the more important question should be how effectively the financial system supports the real economy
“A resilient banking system cannot assist indefinitely where businesses cannot obtain affordable credit. Manufacturing that is struggling cannot expand, and millions of productive MSMEs remain outside the formal financial system,” he said
The President said the Federal Government was expanding guarantees, risk-sharing mechanisms, blended finance and credit enhancements to encourage private capital and increase financing for productive investments
A National Credit Guarantee Company will form a key part of the framework, with the government seeking to reduce lending risks and improve access to finance for businesses
Tinubu also said the recent bank recapitalisation must go beyond creating larger financial institutions and should translate into increased capital formation in the real economy
“It must translate into capital formation in the real economy, financing Nigerian businesses as they expand across Africa and pursue our ambition of a $1 trillion economy,” he said
He added that a larger bank that does not finance a more productive economy would represent “a suboptimal outcome.”
The President called for deeper financial inclusion, noting that having access to a bank account does not necessarily mean having access to finance
He said the financial system should enable small businesses and entrepreneurs to secure working capital based onch many MSMEs do not have
“We must build a system that finances potential and opportunities rather than quick gains for the privileged,” he said
Tinubu also called for a gradual shift away from a financial system in which attractive returns from government securities make lending to businesses less appealing
According to him, improving fiscal conditions would create more room for private-sector lending as government borrowing pressures decline
He described the desired outcome as a “virtuous cycle” where stronger fiscal discipline reduces government borrowing, lower inflation contributes to reduced interest rates, and cheaper capital encourages businesses to invest and expand
Increased production, he said, would generate more jobs, incomes and tax revenues, further strengthening Nigeria’s fiscal position
“That is how gains from reform begin to compound at scale, and the financial sector must be ready for that transition,” he said
The President also identified technology, long-term capital and trust as important pillars of a resilient financial system, while warning that increased digitalisation would also expose financial institutions to greater cybersecurity risks
He called for deeper development of Nigeria’s capital markets, insurance, pension and asset management sectors to mobilise domestic savings and foreign capital for long-term investment
Tinubu said Nigeria’s GDP grew by 4.43 per cent year-on-year in the second quarter of 2026, while headline inflation declined to 15.43 per cent and external reserves exceeded $54 billion
He said the figures showed that “stability has returned” and “credibility is rising”, but cautioned that macroeconomic stability should not be confused with economic prosperity
“Stability is a foundation; prosperity is a destination,” he said
CIBN President and Chairman of Council, Dele Alabi, also said recent economic and financial reforms were beginning to produce positive results
He noted that 33 banks had met the revised minimum capital requirements, raising N4.65 trillion in new capital and providing additional buffers against domestic and external shocks
Alabi said Nigeria’s improved economic indicators were also helping rebuild investor confidence, citing Moody’s Ratings’ decision on August 28, 2026, to change Nigeria’s outlook from stable to positive while affirming its B3 sovereign rating
He also noted that FTSE Russell had announced Nigeria’s reclassification from Unclassified to Frontier Market status, effective September 21, 2026
However, Alabi stressed that the ultimate test of economic progress would be whether improvements at the macroeconomic level translate into lower living costs, more jobs, higher incomes and affordable credit for households and businesses
“Macroeconomic progress must therefore be felt at the micro level – in households, small businesses and the daily lives of ordinary Nigerians,” he said
Up Next
Call for Applications: Inclusive Economic Empowerment (IEE) Pathways Programme 2026 Skills Training and Employment Opportunities
Don’t Miss
Call for Applications: Giving Joy Grant 2026 for Women Entrepreneurs – Up to $500
Business4 years agoBREAKING: CBN announces New Withdrawal Policies, Pegs ATM Withdrawals Limit at N20,000 daily, N100,000 weekly
Business6 years agoFirst Bank Nigeria Joins SME Finance Forum
Business6 years agoFG Opens Application Portal for N75 Billion MSME Survival Fund 10pm Today, Releases Time-table for Payroll Support Scheme for different sectors
Business3 years agoCall for Applications: MTN ICT and Business Skills Training (N90 Million Grant for 300 Participants)
Business6 years agoHow to apply and benefit from free CAC Business Name Registration for 250,000 MSMEs
- Business4 years ago
Call for Applications: Rural Youth Skill Acquisition Programme for Nigerian Youths (receive N50,000 monthly stipend)
Articles & Resources6 years agoHow to put your house in order for tax purposes
Business4 years agoCall for Applications: Tony Elumelu Foundation Entrepreneurship Programme 2023 for African Entrepreneurs (get $5,000 seed funding)