Nigeria’s financial authorities are exploring sweeping reforms to strengthen funding access for small businesses, as part of broader efforts to stimulate inclusive economic growth and reduce dependence on public borrowing.
At a policy forum in Abuja marking the launch of the Nigeria Development Update by the World Bank, the Central Bank of Nigeria signalled plans to recapitalise and restructure Development Finance Institutions (DFIs), citing their limited capacity to meet the country’s vast financing needs.
Speaking during a panel session, Deputy Governor for Economic Policy at the Central Bank of Nigeria, Muhammad Abdullahi, said a recent assessment revealed a significant mismatch between available funding and demand from micro, small, and medium-sized enterprises (MSMEs).
According to him, the combined asset base of Nigeria’s DFIs stands at just over ₦8 trillion—far below the estimated ₦130 trillion required to adequately support MSMEs nationwide. The gap, he noted, underscores the urgency for recapitalisation and structural reforms to scale up lending capacity and improve financial intermediation.
In parallel, the Federal Government is advancing new measures to deepen domestic capital formation through a proposed mass savings scheme. The initiative is designed to encourage participation across income groups, allowing Nigerians to save, invest, and earn returns while contributing to national development.
Minister of Finance, Wale Edun, said the programme would provide alternative funding channels by mobilising local savings and promoting equity investment in key sectors of the economy. He highlighted opportunities for citizens to invest in major enterprises, including industrial firms and publicly listed companies.
Edun added that expanding domestic investment would help reduce reliance on debt financing while attracting private capital into critical sectors. The approach, he explained, aligns with ongoing fiscal reforms focused on improving revenue generation, enhancing transparency in public finance, and tightening expenditure controls.
Together, the proposed DFI overhaul and savings mobilisation strategy reflect a coordinated push by policymakers to bridge Nigeria’s financing gap and build a more resilient, investment-driven economy.