The Central Bank of Nigeria is exploring the recapitalisation and restructuring of Development Finance Institutions to bridge the funding gap for micro, small, and medium-sized enterprises. Muhammad Abdullahi, Deputy Governor for Economic Policy, made the disclosure during a panel at the World Bank’s Nigeria Development Update launch in Abuja.
Abdullahi said a recent CBN review found that existing DFIs were too small to meet the scale of credit demand. “Across all DFIs in Nigeria, the total asset base is slightly above N8 trillion, whereas the financing requirement for MSMEs is over N130 trillion,” he noted.
The move comes as the Federal Government also unveiled plans for a mass savings scheme designed to reduce borrowing dependence and expand domestic investment. Minister of Finance Wale Edun said the initiative will allow Nigerians across income levels to invest and earn returns while supporting economic growth.
“Alternative funding options such as domestic savings mobilisation and equity participation will play a larger role going forward, especially as the government seeks to crowd in private capital,” Edun explained. He added that the scheme aligns with broader reforms aimed at strengthening public finances, including improved revenue tracking and expenditure control.
The proposed DFI recapitalisation and the savings scheme form part of wider efforts to address Nigeria’s significant financing shortfall and foster a more resilient economic environment for businesses and households.
Comments are closed for this story.