Central Bank of Nigeria (CBN) has announced plans to begin a recapitalization exercise for Development Finance Institutions (DFIs) as part of efforts to improve access to credit and support economic growth in the country.
Gatekeepers News reports that. the apex bank said the move is aimed at strengthening key institutions such as the Bank of Industry, Development Bank of Nigeria, and NEXIM Bank, which currently face limitations in meeting Nigeria’s rising funding needs, especially for small and medium-scale businesses.
CBN officials noted that the current capital base of these institutions is far below the level required to bridge the massive financing gap in the real sector. They explained that while DFIs play a critical role in providing long-term funding, their capacity has been constrained by inadequate capitalization.
The planned recapitalization is expected to enhance their lending power, improve financial stability, and enable them to better support job creation, manufacturing, and export-driven growth.
The apex bank also indicated that the reform will not only focus on increasing capital but will also involve strengthening governance structures, improving efficiency, and ensuring better risk management across the institutions.
The initiative forms part of broader financial sector reforms aimed at repositioning Nigeria’s economy for sustainable development and increased private sector participation.
