The Central Bank of Nigeria (CBN) is reviewing plans to recapitalise and restructure Development Finance Institutions (DFIs) to better support micro, small, and medium-sized enterprises (MSMEs). Deputy Governor Muhammad Abdullahi disclosed this during a panel session at the launch of the Nigeria Development Update by the World Bank in Abuja on Tuesday. He stated that a recent CBN review found the combined asset base of all DFIs in Nigeria to be just above N8tn, far below the estimated N130tn needed to meet MSME financing demands. "We conducted a review last year of the development finance space. Across all the DFIs in Nigeria, the total asset base is slightly above N8tn, whereas what is required in development finance for MSMEs is over N130tn," Abdullahi said.
Meanwhile, the Federal Government is introducing a mass savings scheme to reduce borrowing and boost domestic investment. Finance Minister Wale Edun, speaking at the same event, explained that the scheme would allow Nigerians at all income levels to save and earn returns from investments in firms like refineries and other companies listed on the stock exchange. He emphasized that domestic savings mobilisation and equity participation would become key funding sources as the government works to attract private capital. The initiative supports wider fiscal reforms, including better revenue tracking and spending controls.
The CBN's admission that Nigeria's DFIs collectively hold just N8tn against a N130tn MSME financing gap reveals how underpowered these institutions have become. Muhammad Abdullahi's figures underscore a systemic failure to scale development finance despite years of policy rhetoric. For ordinary Nigerians, this means continued difficulty accessing credit, regardless of government promises. A mass savings scheme may encourage public participation in growth, but without credible institutions to channel funds, its impact will likely remain symbolic.
