Tinubu Demands Affordable Credit for Businesses After Bank Recapitalisation

President Bola Tinubu has challenged Nigerian banks to ensure that the recently completed recapitalisation of the banking sector translates into affordable credit for businesses and increased investment in the real economy.

Tinubu made the call at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria in Abuja, where he urged financial institutions to move beyond focusing primarily on balance-sheet growth, profitability and shareholder returns.

Represented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the President said a resilient banking system could not be sustained if businesses continued to struggle to obtain affordable financing.

He stressed that the ultimate measure of a strong financial system should include its ability to support productive businesses, expand investment and create jobs.

Tinubu said the ongoing banking sector recapitalisation must deliver more than stronger financial institutions. The additional capital, he said, should be channelled into productive activities and businesses capable of expanding Nigeria’s economic capacity.

The President urged banks to rethink how they assess risk, arguing that viable businesses and entrepreneurs should have access to financing based on their capacity and cash flows rather than being excluded because they lack traditional collateral.

He said Nigeria’s current reform phase was focused on converting economic stability into investment, investment into production, production into jobs and economic growth into improved living standards.

Tinubu identified growth facilitation, financial inclusion, technology, long-term capital and trust as key priorities for building a resilient financial system.

He also highlighted the transformation of financial services through artificial intelligence, digital banking, open banking, digital identity and instant payments, urging the industry to embrace innovation while strengthening cybersecurity and consumer protection.

The President further called for deeper development of Nigeria’s capital markets, pension, insurance and asset-management sectors to mobilise long-term domestic and foreign capital for infrastructure, industry, housing and energy.

He said the banking industry would play a central role in Nigeria’s ambition to build a $1 trillion economy, stressing that bigger banks would have limited value if their stronger balance sheets did not translate into a more productive economy.

Tinubu’s remarks come amid renewed calls for lower lending rates and greater access to finance for Nigerian businesses, particularly small and medium-sized enterprises facing high borrowing costs.

He urged financial institutions to deploy capital in ways that expand enterprise, increase productivity and ultimately improve living standards across the country.