President Bola Tinubu has called on Nigerian banks to make credit more affordable and accessible to businesses following the completion of the banking sector recapitalisation exercise.
Tinubu said the stronger capital position of banks should translate into better lending conditions for businesses, particularly micro, small and medium-sized enterprises that require financing to expand their operations.
The President made the call while stressing the need for the banking sector to support the real economy and contribute more directly to job creation and economic growth.
According to him, recapitalisation should not only strengthen banks’ balance sheets but should also improve their ability to provide funding to productive sectors of the economy.
Tinubu urged financial institutions to review the cost of borrowing and make credit more accessible to businesses that are contributing to economic development.
The President’s position comes after the Central Bank of Nigeria’s recapitalisation programme, which required commercial banks to raise additional capital to strengthen their financial capacity.
The exercise was aimed at ensuring that Nigerian banks have stronger capital buffers and are better positioned to withstand economic shocks while supporting increased lending.
Tinubu said the government expected the banking sector to play a major role in financing businesses and investments that can expand production and create employment opportunities.
He also stressed the importance of ensuring that the benefits of banking reforms are felt by businesses and ordinary Nigerians rather than remaining within the financial sector.
The President’s call puts pressure on banks to turn their stronger capital positions into cheaper and more accessible loans as the Federal Government seeks to boost private-sector investment and strengthen Nigeria’s economy.