Edun urges banks to expand credit to SMEs, deepen capital markets

…CBN’s Usoro, Bello conferred with CIBN honorary Fellowship

Wale Edun, the minister of finance and coordinating minister of the economy, has urged banks and other financial institutions to deepen credit access for small and medium enterprises (SMEs) as part of efforts to strengthen Nigeria’s economic growth and promote inclusivity.

Speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos over the weekend, Edun said the banking and finance sector must do more to ensure that small businesses can access funding locally rather than seeking support abroad.

Edun said the financial sector has made remarkable progress, but more needs to be done to democratise access to credit and strengthen the capital market. He said, “As finance and banking industry, we have more work to do because we must finance their ideas. We must deepen the capital markets, banking credit markets down to small SMEs. They should not have to go to Silicon Valley. As bankers, we have done very well, but there is still a long way to go.”

He commended the Central Bank of Nigeria (CBN) for maintaining monetary discipline under its current leadership, describing the ongoing tight monetary policy as necessary to curb inflation, stabilise the financial system, and restore investor confidence. He noted that the collaborative efforts between the fiscal and monetary authorities have been crucial in supporting economic recovery, even as the government continues to pursue reforms.

Edun said, “We all know that monetary policy under him has stabilised the financial system in a most commendable way. We recognise and thank his efforts. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one that we all have to participate in, so we understand those tight monetary policies.”

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He reflected on the progress made in Nigeria’s financial system, noting that technological innovation has transformed banking operations and customer access to funds. He added that while the banking system has evolved significantly, more must be done to create jobs and expand opportunities for young people. “There are 400,000 graduates every year. We now have what I would say is our President’s agenda, rapid growth that is accelerating above 4 percent, well above 4 percent and we look forward to continuing. We have sustained effort on the reforms since May 29, 2023, and we have stayed the course. But we need inclusivity, and that inclusivity means good-paying jobs for our young people,” he said.

At the ceremony, Emem Usoro, CBN deputy governor in charge of Corporate Services, and Bala Bello, CBN deputy governor in charge of Operations, were conferred with the Distinguished Honorary Fellowship of the CIBN, while Monsurat Modesola Vincent, CBN director of Strategy and Innovation Management, was recognised as an Honorary Senior Member of the Institute.

Oliver Alawuba, chairman of the Committee of Bank CEOs and Group managing director/chief executive officer of United Bank for Africa (UBA) Plc, commended the Finance Minister and the CBN Governor for the visible progress in stabilising the economy and improving foreign exchange liquidity. “We thank the Minister of Finance and the CBN Governor. We have seen the difference. A year ago, customers were asking for dollars; today, we are asking them if they need any. Thanks to the efforts of the coordinated economic team,” he said.

Alawuba urged the newly inducted Fellows and Senior Members of the Institute to champion digital transformation, strengthen trust, and promote collaboration within the banking industry to sustain the positive momentum in the financial sector.