CIBN urges Nigerian banks to deploy N4.65tn for MSMEs and youth growth

The Chartered Institute of Bankers of Nigeria (CIBN) has called on banks to utilize the N4.65 trillion raised during the recent recapitalization exercise to support Micro, Small and Medium-sized Enterprises (MSMEs). CIBN President Dele Alabi stated that while the additional capital provides a buffer against economic shocks, it must be deployed strategically to drive economic growth and employment.

Following a 24-month implementation period that concluded on March 31, 2026, the Central Bank of Nigeria reported that 33 lenders successfully met new capital requirements. Alabi emphasized that because equity capital is expensive, banks must find ingenious ways to generate economic value through efficient deployment.

Additionally, the CIBN highlighted the importance of harnessing Nigeria’s youth population, which comprises over 60 percent of the country's demographics. Alabi noted that while Nigeria has seen success with several tech unicorns led by young founders, the nation has yet to fully optimize its youth demographic to drive rapid economic expansion similar to other emerging markets.