Tinubu Calls for Banking Support for Agriculture Financing

At the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria, President Bola Ahmed Tinubu challenged financial institutions to move beyond traditional metrics of balance-sheet growth and profitability. He emphasized that the strength of Nigeria’s banking system, recently bolstered by the Central Bank of Nigeria's recapitalisation programme, should translate into tangible economic benefits such as investment, job creation, and improved living standards.

The President highlighted the need for banks to balance their responsibilities to depositors with the imperative to finance productive enterprises. He pointed out that credit enhancements, particularly credit guarantees, could play a crucial role in mitigating risks associated with agricultural financing.

NIRSAL serves as a case study, providing financial institutions with partial coverage against credit losses on agricultural transactions, thus encouraging lenders to engage more confidently in the agricultural sector.