The Chartered Institute of Bankers of Nigeria (CIBN) has called on commercial banks to redirect more capital towards Micro, Small and Medium Enterprises (MSMEs) as interest rates and yields on government securities continue to fall.
The President and Chairman of Council of CIBN, Dele Alabi, made the call during a media briefing on Tuesday ahead of the Institute’s 19th Annual Banking and Finance Conference.
Alabi said the recent recapitalisation of Nigerian banks had provided lenders with a stronger capital base, but stressed that the funds must be deployed to support economic growth.
He said banks could no longer depend mainly on government securities and top-tier corporate borrowers because yields were declining and large companies were demanding cheaper loans.
“Banks can no longer just focus on trading money on G3 securities or just lending to the top sector. Why? Because the interest rate regime is going down.”
Alabi said MSMEs remained a major source of economic growth, but many businesses struggle to access bank financing because of weak corporate governance, poor financial records and inadequate accounting systems.
He disclosed that CIBN would establish MSME forums and SME clinics to help businesses improve their capacity and become more suitable for bank lending.
The Institute also plans to develop SME clusters in collaboration with state governments, with the aim of creating stronger links between banks and small businesses.
“We have also said to our colleagues, the bank CEOs, that lending to SMEs in a profitable and secure manner are not mutually exclusive. You can achieve both simultaneously.”
Alabi said stronger lending to MSMEs would benefit banks, businesses and the wider economy through increased employment and economic activity.
He also said CIBN would continue to promote financial inclusion under its new Impact Vision, which includes six pillars covering inclusion, membership, professionalism, accountability, competencies, and technology.
The 19th Annual Banking and Finance Conference is scheduled for September 8 and 9, 2026, at the Congress Hall of Transcorp Hilton Hotel, Abuja, with more than 10,000 delegates expected to participate physically and virtually.
Faridah Abdulkadiri
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