The Chartered Institute of Bankers of Nigeria (CIBN) has called on commercial banks to shift greater attention and capital towards Micro, Small and Medium Enterprises (MSMEs), noting that falling interest rates and reduced yields on government securities have made the old model of heavy reliance on treasury instruments and blue-chip borrowers increasingly unsustainable.
President and Chairman of Council of the Institute, Dele Alabi, made the call on Tuesday during a media briefing ahead of the 19th Annual Banking and Finance Conference. He observed that the recent recapitalisation exercise has given Nigerian banks a stronger capital base, but insisted that the enhanced capacity must now be deployed to drive real economic growth rather than remain concentrated in low-risk, low-impact assets.
“Banks can no longer just focus on trading money on G-secs or just lending to the top sector. Why? Because the interest rate regime is going down,” Alabi said. He noted that large corporates are also demanding cheaper financing, further squeezing traditional lending avenues.
Alabi identified MSMEs as a critical engine of economic expansion and job creation, while acknowledging the long-standing barriers that keep many of them outside the formal banking system. Weak corporate governance, incomplete financial records and inadequate accounting systems continue to limit their access to credit, he said.
To address these gaps, the Institute plans to introduce MSME forums and SME clinics aimed at strengthening the capacity of small businesses and improving their bankability. CIBN will also work with state governments to develop SME clusters that create clearer pathways between banks and enterprises operating in similar sectors.
Alabi stressed that profitable and secure lending to SMEs are not mutually exclusive. “You can achieve both simultaneously,” he told bank chief executives. Increased credit flow to the segment, he added, would generate wider benefits through higher employment and expanded economic activity.
The Institute will also sustain its push for financial inclusion under its new Impact Vision, built around six pillars: inclusion, membership, professionalism, accountability, competencies and technology.
The 19th Annual Banking and Finance Conference is scheduled for September 8 and 9, 2026, at the Congress Hall of Transcorp Hilton Hotel, Abuja. More than 10,000 delegates are expected to participate both physically and virtually.
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