The Central Bank of Nigeria (CBN) has confirmed that around 20 deposit money banks have met the new capital requirements under its ongoing banking recapitalisation programme, with authorities now prioritising the translation of stronger balance sheets into real sector credit growth.
Deputy Governor, Economic Policy, Dr Muhammad Abdullahi, disclosed this at the launch of the 2026 Macroeconomic Outlook by the Nigerian Economic Summit Group in Lagos. He explained that the programme is designed to build banks capable of supporting Nigeria’s goal of becoming a trillion-dollar economy.
“Even at the inception of the capitalisation programme, the major focus was how to ensure stronger banks that can support SMEs and businesses requiring funding at good rates,” Abdullahi said. He added that the CBN is enhancing regulatory capacity through technology to monitor that recapitalisation benefits reach priority sectors, particularly SMEs.
Abdullahi stressed that recapitalisation alone is insufficient, warning that banks must convert increased capital into productive and sustainable lending. He highlighted Nigeria’s development finance gap, estimating that the country requires about N230 trillion across critical sectors, while combined development finance institutions hold less than N9 trillion. Efforts are now focused on mobilising private sector capital both domestically and internationally.
The CBN is coordinating with the Ministry of Finance, which is leading the development finance strategy, while also working to correct incentives in development finance institutions to ensure funds are efficiently deployed.
Meanwhile, the Minister of State for Industry, Senator John Enoh, unveiled the National Industrial Policy aimed at boosting manufacturing, creating jobs, and reducing import dependence. The policy emphasizes industrial value chains, MSME-to-industry transition, trade competitiveness, AfCFTA readiness, and strong institutional governance. Key sectors include agro-processing, solid minerals, petrochemicals, automotive, and pharmaceuticals.
Enoh stressed that policy success will depend on execution, not just design, noting the need to align MSMEs with industrial value chains, provide long-term finance, and develop industry-relevant ss. “The question is no longer what the policy is. The question is how we deliver,” he said.
I wonder if these banks will actually focus on productive lending or just meet the requirements on paper. Time will tell!
I wonder if these banks will actually prioritize productive lending or stick to their old ways. Time will tell!
Interesting how CBN is focusing on productive lending, but will these banks really prioritize small businesses over big corporations? 🤔
Interesting, but could this shift in focus lead to riskier lending practices? Just a thought to ponder 🤔
I dont buy it. Banks meeting capital requirements doesnt necessarily mean theyre focusing on productive lending. Show me the proof!
Do you think focusing on productive lending will really benefit the economy in the long run? Im not convinced yet.
Do you think focusing on productive lending will really help the economy or just benefit the banks? 🤔 #controversial #economicdebate
Do banks meeting capital requirements really lead to more productive lending? Seems like a good move, but will it actually benefit the economy? 🤔
Is the focus on productive lending really beneficial for the economy? Or are there better ways to stimulate growth?