Sanwo-Olu, CIBN Task Banks on Productive Lending to Drive Industrial Growth

Nume Ekeghe, Governor Babajide Sanwo-Olu, and Dele Alabi, Chairman of the Council of the Chartered Institute of Bankers of Nigeria (CIBN), called upon banks to invest in productive lending following the recent recapitalisation exercise. The trio made the plea during the CIBN Fellowship Investiture Ceremony in Lagos, emphasizing the importance of effectively deploying the additional capital to support industrial expansion and create economic opportunities for all Nigerians.

Sanwo-Olu highlighted access to affordable, long-term financing as a significant challenge for Nigerian businesses, urging banks to increase lending to sectors capable of driving sustainable growth. He emphasized that manufacturers needed financing for machinery, production, and international competition, while agricultural businesses required capital to enhance storage and processing capabilities.

The former Group Chief Executive Officer of FBN Holdings Plc, Mallam Bello Macido, urged banks to diversify their asset allocation strategies, warning against excessive concentration in treasury instruments. Macido argued that lending to carefully selected sectors, such as SMEs, could yield higher net returns than risk-free assets.

He encouraged banks to prioritize manufacturing, industrial parks, and other critical sectors that would bolster domestic production and economic transformation.