CIBN Chief Urges Lenders to Channel New Funds Toward Small Businesses

The president of the Chartered Institute of Bankers of Nigeria (CIBN) has called on banks in the country to deploy newly raised capital toward micro, small and medium-sized enterprises (MSMEs), according to The Guardian Nigeria News. The appeal, reported on Wednesday, 12 August 2026, comes as Nigeria pursues its goal of reaching a $1 trillion economy, a target that Premium Times Nigeria also highlighted in its coverage of the CIBN president's remarks. The Guardian Nigeria News reports that the CIBN president's push for fresh lending to MSMEs is tied to the ongoing banking recapitalisation exercise in the country. TheCable, in a separate report on the same remarks, noted that the CIBN president also urged lenders to build strong risk management systems so they can lend to small businesses profitably and securely. The context for this guidance is the broader banking sector reform programme. Business News Nigeria has published an explainer on what the reforms, led by Central Bank of Nigeria Governor Olayemi Cardoso, have changed in the year since they were introduced. The recapitalisation process has required banks to raise new funds to meet higher capital adequacy thresholds, a shift that Proshare has examined in its fifth edition Tier Banks Report, which assessed the move "from capital adequacy to business resilience."  The CIBN president's comments suggest that simply meeting regulatory capital requirements is not enough; the funds must be put to work in the real economy. MSMEs are widely seen as a key driver of job creation and economic growth in Nigeria, but they have historically struggled to access affordable credit from commercial banks. What to watch next: whether Nigerian lenders will adjust their lending models to serve MSMEs at scale without compromising asset quality.