Nume Ekeghe
Governor, Babajide Sanwo-Olu; President and Chairman of Council of the Chartered Institute of Bankers of Nigeria (CIBN), Dele Alabi and former Group Chief Executive Officer of FBN Holdings Plc, Mallam Bello Maccido, have urged banks to channel funds raised by way of the latest recapitalisation train in direction of productive lending to companies, significantly SMEs and producers, to speed up industrial progress.They made the decision on the CIBN Fellowship Investiture Ceremony held in Lagos over the weekend.Speaking on the occasion, Sanwo-Olu mentioned the success of the recapitalisation train would finally rely on how successfully the extra capital was deployed to assist productive enterprises, increase industries and create financial alternatives.
He recognized entry to inexpensive, long-term financing as one of many main constraints going through Nigerian companies, urging banks to enhance lending to sectors able to driving sustainable progress.
“But raising capital is only the beginning. The two major obstacles, in our view, are how effectively that capital supports productive enterprises, how it helps industrial expansion, and how it creates economic opportunities for every Nigerian,” the governor mentioned.
He famous that producers wanted financing to purchase equipment, fund manufacturing and compete internationally, whereas agricultural companies required capital to strengthen storage and processing capability.
He additionally known as for elevated assist for start-ups, significantly younger companies requiring seed capital to set up and increase their operations.
Sanwo-Olu harassed that the banking business had a essential position to play in rising the Micro, Small and Medium Enterprises (MSMEs) section, noting that improved entry to financing would broaden financial participation.
Earlier, Alabi mentioned the recapitalisation programme had mobilised N4.65 trillion in contemporary capital by way of the Nigerian capital market, with 33 banks assembly the brand new capital necessities.
He described the event as proof of the resilience of the banking business and the rising depth of the nation’s monetary markets.
However, he mentioned the precedence should now shift in direction of making certain that the strengthened capital base interprets into investments in industries, infrastructure, enterprise enlargement and job creation.
“The question before us is no longer whether our banks have sufficient capital, but whether that capital will translate into new industries, expanded businesses, better infrastructure, thriving SMEs, sustainable jobs, and shared prosperity,” Alabi mentioned.
He mentioned Nigeria had a major alternative to deploy the extra capital in direction of manufacturing, agriculture, infrastructure, power and expertise.
Also talking, Maccido urged banks to rethink their asset allocation methods, warning towards extreme focus in treasury devices on the expense of lending to the true sector.
Citing a World Bank report, he mentioned that for the reason that completion of the recapitalisation train in March 2026, treasury payments had elevated as a proportion of banks’ whole belongings from 18 per cent to 22 per cent, whereas loans had remained unchanged at 22 per cent.
He described the pattern as a priority, urging banks to direct extra capital in direction of industries that might assist financial transformation.
“So, I’m appealing to you, my friends and fellow bankers, as I move into the advisory world, having grown older in banking. We need to look at the critical industries necessary to drive the transformation of our economy,” he mentioned.
Maccido argued that lending was not merely a regulatory obligation however a worthwhile enterprise that supplied banks a number of earnings streams, together with curiosity earnings, international alternate earnings, letters of credit score commissions and different charges.
“Lending itself is a very good business because the income streams from lending are diverse. From interest income to exchange income, letters of credit commissions and other fees, there is quite a wide array of income streams that banks can generate from lending. So, lending is not something you are doing simply because the regulatory authorities are pushing or forcing you to do it. You are actually making money from it,” he mentioned.
He additional famous that lending to fastidiously chosen sectors, together with SMEs, might ship greater web yields than treasury devices, given the comparatively decrease returns related to risk-free belongings.
Maccido urged banks to prioritise manufacturing, industrial parks and different essential sectors that may strengthen home manufacturing.
“I would like to see us focus on manufacturing, industrial parks and other critical sectors that will drive the creation of a productive economy. That is the whole essence of the recapitalisation exercise stipulated by the CBN,” he mentioned.
