The Central Bank of Nigeria (CBN) is considering the recapitalisation and restructuring of Development Finance Institutions (DFIs) to close the significant financing gap facing micro, small, and medium-sized enterprises (MSMEs).
Muhammad Abdullahi, Deputy Governor of the CBN in charge of Economic Policy, disclosed the plan during a panel discussion at the launch of the World Bank’s Nigeria Development Update in Abuja on Tuesday.
He explained that a recent review of the nation’s DFIs revealed that existing institutions are too small to meet the credit needs of businesses.
“We conducted a review last year of the development finance space.
”Across all the DFIs in Nigeria, the total asset base is slightly above N8 trillion, whereas what is required in development finance for MSMEs is over N130 trillion,” Abdullahi said.
In tandem, the Federal Government unveiled a mass savings scheme designed to reduce dependence on borrowing while expanding domestic investment.
Speaking at the same event, Minister of Finance Wale Edun said the initiative would enable Nigerians across all income levels to save and earn returns, while also supporting economic growth.
“There are mass savings schemes which allow people at all levels of society to save and earn unearned income, including from companies such as refineries and other large firms listed on the stock exchange,” he said.
Edun added that alternative funding options such as domestic savings mobilisation and equity participation would play a larger role in the future, particularly as the government sought to crowd in private capital.
He noted that the initiative complements broader reforms aimed at strengthening public finances, including improved revenue tracking and expenditure control.
The combined CBN and Federal Government measures aimed to provide a more robust financial ecosystem for MSMEs, ensuring they have access to adequate financing while encouraging broader participation in Nigeria’s economic growth.
