FG Urges Banks to Invest in Productive Sectors

On Tuesday, during the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, President Bola Ahmed Tinubu, represented by Minister of Finance Taiwo Oyedele, urged Nigerian banks to reduce their reliance on government securities. He called for banks to channel more credit into businesses and infrastructure to foster private-sector growth.

Tinubu noted that attractive returns on government securities have made lending to businesses less appealing, but improving fiscal conditions should create more opportunities for private-sector credit. He emphasized that stronger fiscal discipline would alleviate government borrowing pressure and lower inflation could lead to reduced interest rates, making capital more accessible for businesses.

The president also mentioned the importance of the recently completed bank recapitalization in enhancing financing for Nigerian businesses. To support lending to productive sectors, the government is expanding guarantees and risk-sharing arrangements, with the National Credit Guarantee Company playing a central role in this strategy.