Tinubu Calls for Affordable Credit for Nigerian Businesses

On Tuesday, President Bola Tinubu addressed the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria in Abuja, advocating for Nigerian banks to translate their recent recapitalisation into affordable credit for businesses. Represented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, Tinubu warned that larger bank balance sheets would be ineffective if productive sectors lacked financing.

He stated that the financial sector should prioritize supporting businesses, investment, and job creation over merely financing government activities. Tinubu highlighted the government's initiatives to enhance lending to productive sectors through guarantees and risk-sharing mechanisms.

He called for a shift from government securities to private-sector lending, noting that attractive returns on government securities have deterred banks from financing the productive economy. He emphasized that while macroeconomic stability has improved, it has not yet translated into better living standards.

Oliver Alawuba, CEO of United Bank for Africa Plc, noted that the recapitalisation exercise had strengthened banks' capacity to finance the economy.