CIBN urges recapitalised banks to boost SME financing amid industrial demand
CIBN called on recapitalised banks to expand affordable, long‑term credit for SMEs as Nigeria seeks to channel N4.65 trillion of fresh capital into industrial growth
In Brief
- •CIBN called on recapitalised banks to expand affordable, long‑term credit for SMEs as Nigeria seeks to channel N4.65 trillion of fresh capital into industrial growth
- •The recapitalisation exercise, completed in March 2026, saw 33 banks meet new minimum capital requirements
- •Manufacturing lending fell 33.8 % from N8.53 trillion in December 2024 to N5.65 trillion in August 2026, while its share of total credit dropped from 17.4 % to 8.7 %
- •Bank lending rates remain high, ranging between 19 % and 32.6 % despite the Central Bank’s policy rate cut to 23 % in September 2026
- •The NESG and CIBN propose a coordinated financing framework to improve access to long‑term capital for productive sectors
Why It Matters
Nigeria’s banking sector has recently secured a substantial capital boost, yet the translation of this capital into productive investment remains uneven. The call from CIBN highlights a critical policy gap: while banks possess the financial capacity, the allocation of credit is skewed away from manufacturing and SMEs—sectors that drive job creation and economic diversification. Strengthening SME financing could accelerate industrialisation, improve supply chain resilience, and foster inclusive growth across the country.
Key Details
- Recapitalised capital mobilised
- N4.65 trillion
- Banks meeting capital requirement
- 33
- Manufacturing lending decline
- 33.8% (N8.53T to N5.65T)
- Central Bank policy rate
- 23% (Sept 2026)
- Bank lending rates
- 19%–32.6%
Context & Background
The Nigerian banking sector completed a recapitalisation programme in March 2026, mobilising N4.65 trillion of fresh capital across 33 banks to support manufacturing, agriculture, infrastructure and SMEs.
Original Reporting & Sources
VNews is an independent briefing product. Original reporting remains credited to the following publishers:
This brief was synthesized automatically using attributed third-party reporting. VNews is a digital news publication produced under the VContent Group brand and operated by Francis Vincent Sunday in Ghana, independent from the publishers cited above. Read our AI Transparency Policy and Editorial & Corrections Policy.