As Nigeria targets a $1 trillion economy by 2030, Eze Anaba, Editor of Vanguard Newspaper, has urged Deposit Money Banks (DMBs) to step up and prioritize lending to the real sectors of the economy, particularly agriculture, manufacturing, small and medium enterprises (SMEs), and infrastructure.
Anaba made the call during the 36th Central Bank of Nigeria (CBN) Seminar for Finance Correspondents and Business Editors in Abuja, emphasizing the need for banks to stop sidelining these crucial sectors and provide the funding necessary for their growth.
Banks Need to Support the Heart of Nigeria’s Economy
Anaba expressed frustration that despite Nigeria’s ambition to grow its economy, banks have not been lending to the real sectors at the levels needed to drive substantial growth. He pointed out that manufacturers—who are the backbone of the country’s industrial economy—struggle to access loans, hampering their capacity to expand and generate jobs.
He stated:
“The economy is driven by the informal sector—small-scale traders who need as little as N10,000 or N20,000 to run their businesses. But big manufacturers often can’t access loans either because they lack the political connections needed to secure funding. Until banks start operating professionally and fairly, the $1 trillion economy goal will remain elusive.”
Anaba’s comments reflect the widespread sentiment that small-scale traders and businesses—who form a significant portion of the Nigerian economy—are left behind, unable to access critical loans to keep their businesses alive and growing.
The Need for Regulatory Aggression
In his remarks, Anaba called for the Central Bank of Nigeria (CBN) to be more aggressive in its regulatory control of the banking sector. He argued that only through stronger enforcement of banking regulations will Nigeria stand a chance of meeting its $1 trillion economy target.
Anaba further stressed:
“Loans are available to individuals who lack the capacity to effectively manage businesses. Meanwhile, small-scale businesses suffer from a severe lack of funding. The CBN must take decisive action to correct this imbalance.”
Collaboration with the Media: A Key to Financial Sector Reform
Anaba also advocated for closer collaboration between the CBN and the media to hold banks accountable for their lending practices. He urged the media to keep the pressure on banks, ensuring that they lend to the real sectors that can spur economic growth.
He said:
“We must work together—media and CBN—to hold banks accountable. By doing so, we can ensure that the banking sector becomes more effective and serves the businesses that will drive Nigeria’s economy forward.”
The Role of Technology and Talent in the Future of Banking
As the banking sector becomes increasingly dependent on technology, Dr. Rakiya Yusuf, Director of Payments System Supervision at the CBN, emphasized the critical role of the media in building public trust, particularly regarding the banking sector’s recapitalization efforts.
Mr. Musa Jimoh, Director of Payments System Policy at the CBN, also highlighted the importance of transparency in banking operations and the development of human capital, particularly in the fintech space. With Nigeria’s fintech sector facing a “Japa” (migration) crisis, where many talented experts have left the country, Jimoh stressed the need for strategies to rebuild the tech infrastructure.
Looking Ahead
Anaba’s call for greater attention to real-sector lending and regulatory reforms aligns with Nigeria’s broader economic goals. For Nigeria to reach its ambitious $1 trillion economy target by 2030, it’s clear that access to capital for small businesses, manufacturers, and other vital sectors must be prioritized. Only then will Nigeria be able to break free from its economic constraints and pave the way for sustainable growth.
