07, April 2026
The Central Bank of Nigeria (CBN) is exploring the recapitalisation and restructuring of Development Finance Institutions (DFIs) to bridge the substantial financing gap facing micro, small, and medium-sized enterprises (MSMEs).
CBN’s Deputy Governor of Economic Policy, Muhammad Abdullahi, revealed this during a panel session at the World Bank’s Nigeria Development Update launch in Abuja.
Abdullahi stated that existing DFIs are too small to meet the credit needs of businesses, citing a review by the apex bank that showed a total asset base of just over N8 trillion, whereas the required development finance for MSMEs is over N130 trillion.
Meanwhile, the Federal Government plans to introduce a mass savings scheme to reduce reliance on borrowing and boost domestic investment. Finance Minister Wale Edun announced this initiative, which will enable Nigerians across income levels to invest and earn returns while supporting economic growth.
Edun highlighted that alternative funding options, such as domestic savings mobilisation and equity participation, will play a larger role in the future, especially as the government seeks to attract private capital.
The initiative aligns with broader reforms aimed at strengthening public finances, including improved revenue tracking and expenditure control.
CBN’s review found DFIs’ total asset base is N8tn, while MSMEs require over N130tn in development
finance- Mass savings scheme aims to encourage Nigerians to save and invest in the economy.
Alternative funding options, like domestic savings and equity participation, will support economic growth.
Initiative aligns with public finance reforms, including revenue tracking and expenditure control.
