The Chartered Institute of Bankers of Nigeria (CIBN) has announced plans to strengthen access to finance for Micro, Small and Medium-sized Enterprises (MSMEs) through a proposed national forum and the establishment of specialised business support hubs across the country.
The initiative is part of broader efforts to ensure that the funds raised through Nigeria’s banking sector recapitalisation translate into productive investment, industrial expansion and sustainable economic growth.
The announcement was reported by The Punch on Friday, November 6, following discussions at the institute’s 2026 Fellowship Investiture held in Lagos on October 31.
The event brought together key figures from the banking industry, government and the private sector to examine how stronger banking capital could support Nigeria’s economic development.
Participants included CIBN President and Chairman of Council, Dr Dele Alabi; Lagos State Governor, Babajide Sanwo-Olu; and the Chief Executive Officer of the Nigerian Economic Summit Group, Dr Tayo Aduloju.
The discussions focused on the need to connect the banking sector’s increased financial capacity with the actual funding requirements of businesses operating across different sectors of the economy.
CIBN said it plans to organise its MSME Forum on December 1, 2026, to advance practical solutions for improving access to finance and accelerating enterprise growth.
The institute is also advocating the establishment of MSME hubs across Nigeria.
These centres are expected to provide entrepreneurs with access to financing, business support services, capacity development, digital tools and market opportunities.
Banking recapitalisation and the real economy
Nigeria’s banking sector recapitalisation exercise has been an important development in the country’s financial industry.
According to CIBN President Dele Alabi, the banking industry mobilised approximately ₦4.65 trillion in fresh capital, with 33 banks meeting the new capital requirements.
The recapitalisation programme was designed to strengthen financial institutions and improve their capacity to support larger transactions and economic activities.
However, CIBN believes that the success of the exercise should not be measured only by the amount of capital held by banks.
The institute argues that the additional capital should support businesses, create jobs, expand industrial production and improve infrastructure financing.
This is particularly important for MSMEs, which often face difficulties obtaining loans because of high borrowing costs, limited collateral and inadequate access to long-term financing.
Many small businesses also operate without the financial records and formal documentation required by traditional lending institutions.
As a result, entrepreneurs may struggle to obtain funding even when they have viable business ideas.
Limited access to private-sector credit
During the event, Dr Tayo Aduloju highlighted structural challenges affecting the flow of credit to productive businesses.
He identified high lending costs, liquidity constraints, credit risks, short financing periods and competition between government borrowing and private-sector financing as major obstacles.
The NESG chief executive also cited figures indicating that private-sector credit represented approximately 13 per cent of Nigeria’s GDP in 2025, compared with 38.1 per cent in lower-middle-income economies.
The difference highlights the need to strengthen financial intermediation and improve the ability of businesses to access funding.
When businesses cannot obtain affordable loans, they may struggle to purchase equipment, expand production, hire workers or enter new markets.
This can limit productivity and reduce the contribution of small businesses to national economic growth.
CIBN proposes stronger financing partnerships
To address these challenges, CIBN is advocating a more integrated financing framework involving commercial banks, pension funds, insurance companies, development finance institutions, capital markets and credit guarantee institutions.
The proposed approach is intended to bring different sources of finance together to support businesses with varying funding requirements.
The institute also recommended that banks develop specialist industrial lending capabilities.
Longer-tenor financing, risk-sharing arrangements and credit guarantees were among the other proposals discussed.
CIBN also highlighted the importance of digital cash-flow information and movable assets in assessing the creditworthiness of businesses.
These measures could help financial institutions evaluate small businesses that may not have conventional collateral but demonstrate the ability to generate revenue.
For example, digital transaction records could provide lenders with useful information about a business’s sales, customer activity and financial performance.
This may help reduce some of the information barriers that prevent small enterprises from obtaining credit.
Lagos identifies investment opportunities
Lagos State Governor Babajide Sanwo-Olu also highlighted investment opportunities that could support economic growth and business development.
He identified the Lekki Deep Sea Port, industrial activities along the Lekki corridor, rail and road infrastructure and opportunities created by the Lagos State Electricity Law.
These projects could support businesses operating in manufacturing, transportation, logistics, trade and other commercial sectors.
The governor also stressed that increased banking capital should be accompanied by sound corporate governance, responsible lending, transparency and professional competence.
His comments reflected the need for cooperation between government, financial institutions and private investors.
MSME hubs expected to provide business support
The proposed MSME hubs represent one of the most practical aspects of CIBN’s initiative.
Beyond financing, many entrepreneurs require training, market information, digital skills and professional guidance to grow their businesses.
A properly structured MSME hub could help address these needs by connecting business owners with relevant financial institutions and support organisations.
Such centres could also provide guidance on business registration, financial records, business planning and access to new markets.
The December 1 forum is expected to provide an opportunity for stakeholders to discuss how these ideas can be implemented.
However, the success of the proposed hubs will depend on their accessibility, funding arrangements and ability to deliver practical services to entrepreneurs.
Outlook for Nigerian businesses
For Nigeria’s MSME sector, improved access to finance could support business expansion, employment creation and increased domestic production.
Small businesses operate across agriculture, manufacturing, retail, technology, transportation and services.
Their contribution to economic activity makes them important participants in efforts to diversify the Nigerian economy.
CIBN’s proposed forum and finance hubs could provide a platform for developing practical solutions to the financing challenges facing these enterprises.
Ultimately, the success of the initiative will depend on whether stronger banking capital translates into more accessible and affordable funding for businesses.
For entrepreneurs, the priority is not simply having more money within the banking system but ensuring that viable businesses can obtain the financial support needed to grow.
