Wale Edun Urges Banks to Expand SME Credit Access and Deepen Nigeria’s Capital Market

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has called on the banking sector to strengthen access to credit for Small and Medium Enterprises (SMEs) and boost the country’s capital market growth to achieve inclusive economic development.

Speaking during the 2025 Fellowship Investiture Ceremony of the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos, Edun emphasized that while the Nigerian economy has shown steady improvement, there is a growing need to ensure that prosperity reaches all citizens through job creation, SME financing, and youth empowerment.

The event, themed “Banking Beyond Borders: Leveraging Technological Innovation for Enhanced Performance”, brought together key stakeholders from the financial sector to discuss how innovation and strategic financing can reshape Nigeria’s economic future.

Driving Inclusive Growth Through Access to Finance

Edun highlighted that the administration of President Bola Ahmed Tinubu has recorded measurable economic progress, with reforms driving growth beyond 4%. However, he noted that inclusive growth remains essential to translate macroeconomic success into better livelihoods for Nigerians.

“We have maintained reform momentum since May 2023 and stayed on course. But we must make growth inclusive by creating good-paying jobs for young Nigerians,” Edun said.

The minister urged banks and financial institutions to increase their role in financing ideas and small businesses, stressing that sustainable economic transformation depends on the private sector’s ability to support entrepreneurship.

“We, in the finance and banking industry, must do more. We must fund innovation and deepen the credit market for SMEs. Entrepreneurs should not have to look abroad for support. If we fail to meet their aspirations, they may turn to alternatives such as cryptocurrency, creating new challenges for the financial system,” Edun cautioned.

CBN’s Monetary Policy Credited for Economic Stability

Edun also commended the Central Bank of Nigeria (CBN) under Governor Yemi Cardoso for maintaining monetary stability despite the tightening policies aimed at combating inflation and exchange rate volatility.

“Monetary policy under the CBN governor has stabilized the financial system in a highly commendable manner,” the finance minister said. “While high interest rates have placed some pressure on fiscal operations, the fight against inflation is a collective responsibility.”

His remarks reflect ongoing collaboration between the fiscal and monetary authorities to restore investor confidence, enhance foreign exchange liquidity, and sustain Nigeria’s growth trajectory.

UBA Chief Commends Government’s Economic Reforms

In response, Oliver Alawuba, Group Managing Director (GMD) of the United Bank for Africa (UBA), applauded the finance minister and the CBN for policies that have helped to stabilize the economy over the past year.

“We thank you for the way you have steered Nigeria’s economy. Things are far better today than they were a year ago,” Alawuba stated.

He also congratulated the newly inducted CIBN fellows and honorary members, describing them as “architects of progress and custodians of integrity” who continue to shape Nigeria’s banking landscape.

Strengthening the Financial Ecosystem Through Innovation and Collaboration

Reflecting on the event’s theme, Alawuba urged the banking industry to focus on three critical missions to future-proof Nigeria’s financial system.

“First, we must bridge the digital divide with a human touch,” he said. “As we embrace artificial intelligence, blockchain, and open banking, we must ensure that no Nigerian is excluded from digital transformation.”

He also emphasized the need to build trust and security in a borderless digital economy, warning that every breach erodes confidence and slows progress. “With great innovation comes great responsibility. Safety and data protection must remain non-negotiable.”

Finally, the UBA boss encouraged greater collaboration among banks, fintechs, and regulators, stating that collective effort will make Nigeria’s financial ecosystem more profitable, resilient, and globally competitive.

Positioning Nigeria’s Banking Sector for Global Competitiveness

Industry analysts believe the minister’s call for expanded SME credit and stronger capital markets aligns with Nigeria’s economic diversification goals. Enhanced SME lending is expected to stimulate innovation, boost productivity, and generate employment across key sectors such as manufacturing, agriculture, and digital services.

Experts also point out that deepening the capital market will attract long-term investments and strengthen financial inclusion, especially in rural and underserved areas.

As the government continues to pursue reforms aimed at stabilizing the naira, improving the business environment, and encouraging foreign direct investment, collaboration between policymakers, banks, and investors will remain central to achieving sustained economic recovery.