Business
Tinubu urges banks to turn recapitalisation into jobs, production
President Bola Tinubu has challenged Nigerian banks to shift their focus from financing the government to providing affordable credit to businesses and productive sectors of the economy to drive investment, production and job creation.
Mr Tinubu, who was represented by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the call at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN) on Tuesday.
The President said while the government’s economic reforms had restored macroeconomic stability and improved investor confidence, the next phase must focus on converting those gains into investment, production, jobs and improved living standards.
“The current phase of our reform journey is accelerating the conversion of stability into investment, investment into production, production into jobs, and growth into improved living standards,” he said.
He urged banks to move “from intermediation to transformation”, arguing that the performance of financial institutions should no longer be assessed only by balance-sheet growth, profitability and shareholder returns.
According to him, the critical question should be what the financial system is doing for the real economy.
“A resilient banking system cannot assist indefinitely where businesses cannot obtain affordable credit. Manufacturing that is struggling cannot expand, and millions of productive MSMEs remain outside the formal financial system,” Tinubu said.
He said the government was therefore expanding the architecture of guarantees, risk-sharing, blended finance and credit enhancements, with a National Credit Guarantee Company at its core, to crowd in private capital and support productive investment.
The Nigerian leader said success should increasingly be measured by how much productive capital government policies catalyse, rather than simply by how much the government spends.
Banks must finance growth
The President also said the recently concluded bank recapitalisation must result in more than larger balance sheets, stressing that it should translate into increased capital formation in the real economy.
“It must translate into capital formation in the real economy, financing Nigerian businesses as they expand across Africa and pursue our ambition of a $1 trillion economy,” he said.
“A bigger bank that does not finance a more productive economy is a suboptimal outcome.”
He also called for broader financial inclusion, saying access to bank accounts does not automatically translate into access to finance.
He said the financial system should enable small businesses and entrepreneurs to obtain working capital based on viable cash flows rather than collateral they may not possess.
“We must build a system that finances potential and opportunities rather than quick gains for the privileged,” he said.
Mr Tinubu further called for a transition away from a financial system where attractive returns on government securities make lending to productive businesses less compelling.
He said that improving fiscal conditions would allow the government to create more space for private-sector credit progressively.
The President described the desired outcome as a “virtuous cycle” in which stronger fiscal discipline reduces pressure on government borrowing, lower inflation lowers interest rates, and cheaper capital stimulates investment and production.
He added that increased production would generate more jobs, incomes and tax revenues, further strengthening fiscal sustainability.
“That is how gains from reform begin to compound at scale, and the financial sector must be ready for that transition,” he said.
Tinubu also identified technology, long-term capital and trust as key pillars of a resilient financial system, warning that greater digitalisation would bring increased cybersecurity risks.
He said Nigeria would need to deepen its capital markets, insurance, pension, and asset management industries to mobilise domestic savings and foreign capital for long-term investment.
On the broader economy, the President said Nigeria’s GDP grew by 4.43 per cent in the second quarter of 2026, while headline inflation had eased to 15.43 per cent and external reserves had crossed $54 billion.
He said the improvements showed that “stability has returned” and “credibility is rising”, but cautioned that macroeconomic stability should not be mistaken for economic prosperity.
“Stability is a foundation; prosperity is a destination,” Mr Tinubu said.
“The good news”
In his remarks, Dele Alabi, President/Chairman of Council, CIBN, said the good news is that certain policies implemented in the past couple of years are beginning to yield fruit.
For example, he argued that within Nigeria’s financial system, 33 banks met the revised minimum capital requirements, raising ₦4.65 trillion in new capital, providing a further buffer against domestic and external shocks.
READ ALSO: Credit bypassing Nigeria’s job creators — World Bank Official
“Likewise, recent indicators show that these efforts are beginning to rebuild confidence. As announced by Moody’s Ratings on 28 August 2026, Nigeria’s outlook was changed from stable to positive while the sovereign rating was affirmed at B3,” he said.
Additionally, the CIBN president explained that according to FTSE Russell’s March 2026 Semi-Annual Country Classification Review, Nigeria will be reclassified from Unclassified to Frontier market status, effective 21 September 2026.
“To top all this off, the icing on the cake is that according to the latest figures from the National Bureau of Statistics’ Q2 2026 Gross Domestic Product Report, real GDP grew by 4.43 per cent year-on-year in Q2 2026, up from 3.89 per cent in Q1 2026,” Mr Alabi said.
He noted that collectively, these are important signals of stronger macroeconomic stability, improved investor confidence, and the prospect of broader access to global capital.
He explained that the true test is whether stronger fundamentals translate into lower living costs, more jobs, higher real incomes, affordable credit, reliable public services and reduced poverty.
“Macroeconomic progress must therefore be felt at the micro level – in households, small businesses and the daily lives of ordinary Nigerians,” Mr Alabi said.
He said it is for this reason that the theme of this year’s Conference is sound, and as Nassim Nicholas Taleb aptly observed in his book Antifragile, “Wind extinguishes a candle and energises fire.”
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The Federal Government has funded the accrued pension rights of enrolled federal workers who have yet to retire through December 2029, the National Pension Commission (PenCom) has said, reversing a previous 21-month funding backlog.
PenCom Director-General Omolola Oloworaran disclosed this on Wednesday at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja, saying the government has moved from a 21-month arrears position to a 41-month funding surplus.
Ms Oloworaran, represented by PenCom’s head of corporate communications, Ibrahim Buwai, said the development means accrued pension rights for enrolled federal employees have been funded ahead of their retirement.
“We are moving from a position where our full pension rights were 21 months in arrears to where we are today, 41 months in surplus. And 41 months in surplus means that federal government employees who have not yet retired and who have enrolled have had their accrued pension rights paid up to December 2029,” she said.
Ms Oloworaran also said delays in the payment of retirement benefits have largely been eliminated, with benefits now processed within 48 hours of retirement.
“The issue of delays in the payment of pensions has now become history, and now pensions are being paid within a maximum of 48 hours from retirement,” she said.
The 48-hour processing timeline applies to retirement benefits under the arrangements described by PenCom. It should not be interpreted as a guarantee that every pension-related payment or outstanding liability across the country is settled within that period.
The PenCom boss also highlighted the launch of the PenCare healthcare programme and the N52,500 minimum pension guarantee by President Bola Tinubu on Tuesday.
PREMIUM TIMES had earlier reported the inauguration of the two initiatives, which are intended to provide additional protection for retirees, particularly those with low pension income and limited resources to meet medical expenses.
According to Ms Oloworaran, PenCare would help reduce pensioners’ healthcare expenses, allowing them to spend more of their monthly income on other needs.
She said pension operators and PenCom fund the programme, with an independent board of trustees chaired by the commission’s pioneer director-general, Muhammad Ahmad.
On the minimum pension guarantee, she said eligible retirees receiving below N52,500 monthly will have their pensions increased to the threshold, adding that some beneficiaries received payment alerts during Tuesday’s launch.
The President of the Pension Correspondents Association of Nigeria, Nana Musa, urged journalists to strengthen accountability and public understanding of pension reforms through accurate reporting.
Ms Musa said pension reporting should help Nigerians understand the reforms and their implications for contributors and retirees.
Ms Oloworaran further disclosed that the Federal Government has approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, effective 1 January 2026.
“The Federal Government has just approved the payment of 100 per cent of terminal emoluments as additional exit benefits,” she said.
She added that eligible retirees who left service in 2026 and submitted the required documents have received payment.
The development comes amid demands by pensioners for improved retirement benefits and wider coverage of additional payments to those who retired before the new approval.
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The African Export-Import Bank (Afreximbank) has committed a $75 million finance facility to the Development Bank of Nigeria (DBN) to expand access to finance for Nigerian small and medium-sized enterprises (SMEs), including eligible businesses in the creative economy.
The facility was announced during CANEX WKND 2026 in Lagos, reflecting the event’s focus on linking creative enterprises with finance, investment and markets, Afreximbank said in a joint statement with DBN on Wednesday.
Kanayo Awani, Executive Vice President, IntraAfrican Trade and Export Development, Afreximbank, and Tony Okpanachi, CEO of DBN, led the ceremonial signing on behalf of their institutions.
Ms Awani said the collaboration with DBN extends beyond providing capital, noting that Afreximbank is taking an integrated approach that combines finance with capacity building, export-readiness support and access to markets.
“Our objective is to help Nigerian SMEs build productive capacity, strengthen their competitiveness and make the transition from promising local businesses to sustainable exporters,” she said.
Ms Awani said the bank will team up with participating financial institutions to strengthen their capacity to understand finance better and support SMEs throughout their growth journey.
According to her, combining finance with practical support will help businesses prepare for export markets and connect with buyers across Africa and beyond.
“For creative enterprises, that advances CANEX’s ambition to turn African talent and ideas into sustainable businesses that can compete internationally,” she said.
Mr Okpanachi said the partnership combines DBN’s wholesale lending network with Afreximbank’s trade finance expertise, capacity building and market access support, strengthening local financial institutions’ ability to serve export-oriented SMEs.
According to him, the partnership with Afreximbank shows another significant step in DBN’s commitment to expanding access to finance for Nigerian MSMEs and enabling them to build resilient, competitive and sustainable businesses.
“The $75 million facility will provide much-needed financing through our Participating Financial Institutions, while creating greater opportunities for businesses, particularly those in the creative and export-oriented sectors, to strengthen their productive capacity and access new markets,” Mr Okpanachi said.
Beyond financing, the DBN chief executive said the partnership’s capacity-building and market-access components are particularly important to stakeholders.
By strengthening financial institutions’ ability to support export-ready businesses and connecting Nigerian enterprises to wider African and international markets, the DBN CEO said the development bank is helping MSMEs advance from local businesses to competitive participants in regional and global value chains.
“This aligns strongly with DBN’s mandate to address financing constraints and support inclusive and sustainable economic growth in Nigeria”, Mr Okpanachi added.
DBN will route the loan through its partner financial institutions to fund eligible small businesses.
The facility will support working capital, asset acquisition, pre-export, post-export, and supply chain activities, with businesses in fashion, film, music, design, and the wider creative industries among the intended beneficiaries.
It will also equip beneficiaries with the skills, tools, and market knowledge needed to develop their businesses, become export-ready, and access regional and international markets.
READ ALSO: COP31: Climate activists reject carbon capture, marine geoengineering as ‘false solutions’
Alongside the financing, Afreximbank and DBN will jointly develop a capacity-building programme to strengthen PFIs’ ability to support export-oriented SMEs.
Afreximbank plans to also provide access to its trade platforms, including MANSA, TRADAR, PAPSS and ATEX, and support market access through the Africa Buyer Programme, ATDC and the Intra-African Trade Fair.
Afreximbank, a Pan-African multilateral financial institution, is mandated to finance and promote intra- and extra-African trade.
Working with the African Continental Free Trade Agreement (AfCFTA) Secretariat and the AU, the bank has set up a $10 billion Adjustment Fund to support countries that participate effectively in the AfCFTA.
At the end of December 2025, Afreximbank’s total assets and contingencies stood at over $48.5 billion, while its shareholder funds totalled $8.4 billion.
DBN is a wholesale development finance institution established to address the major financing constraints MSMEs face in Nigeria.
DBN provides long-term financing and risk-sharing support through eligible participating financial institutions, enabling them to extend appropriate, sustainable financing to MSMEs across key sectors of the Nigerian economy.
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