The Central Bank of Nigeria announced a plan to inject fresh capital into, and reorganise, the country's development finance institutions (DFIs). The move aims to bridge a financing shortfall estimated at N130 trillion for micro, small and medium enterprises (MSMEs). Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, disclosed the strategy during a panel discussion. By strengthening DFIs, the CBN hopes to improve the flow of credit to the informal sector and support the growth of small businesses across the economy. The proposal forms part of broader efforts to stimulate private‑sector activity and reduce reliance on external funding sources.
Muhammad Sani Abdullahi's push to recapitalise DFIs signals a direct attempt to unlock financing for millions of Nigerian entrepreneurs. If successful, the N130 trillion gap could shrink, giving MSMEs better access to loans and potentially boosting employment and GDP growth. However, the effectiveness will depend on how swiftly the reforms are implemented and whether DFIs can translate new capital into tangible credit lines.
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