Banking
CBN Credit Policy: Fidelity Bank Plans Big For Real Sector
By Modupe Gbadeyanka
Mid-tier lender, Fidelity Bank Plc, is planning to take full advantage of the new credit policy guideline recently released by the Central Bank of Nigeria (CBN) to support the growth of the agriculture and manufacturing sectors of the economy.
Speaking last Saturday as a Special Guest on ARISE TV’s ‘The Morning Show’, CEO of the financial institution, Mr Nnamdi Okonkwo, applauded the regulator for its foresight in creating the credit guidelines, noting that the policy will go a long way in moderating interest rates downwards.
“The issue had long been about interest rates. Now, CBN has come up with this very ingenious way to address this challenge,” he said.
The Fidelity Bank boss explained that the credit policy allows banks to get back some of their liquidity on the condition that they extend affordable and long-term credit to the real sector.
With a minimum tenor of seven years and a two-year moratorium, Mr Okonkwo stated that the facilities would be administered at an interest rate of 9 percent.
He however, debunked assertions by previous guests on the programme that Nigerian financial institution’s lacked requisite capacity to implement the credit policy.
Mr Okonkwo, who emphasised the importance of the real sector in diversifying Nigeria’s monolithic economy, spoke on the subject of bank’s inability to process credit for these sectors from three perspectives including liquidity and capital adequacy, human capital as well as financial intermediation.
He said, “In the Nigerian Banking industry today, the Capital Adequacy Ratio (CAR) averages show that banks have the capacity to lend to these sectors. There might be one or two players that might have challenges but the regulator at every point keeps an eye on them and makes policies that protect them.”
Besides, Mr Okonkwo pointed out that the 2005 banking consolidation exercise and banking sector reforms of 2008 not only created more diversified and reliable banks but also improved their liquidity position and capacity to assume risks.
Whist pointing out that there were bigger macro-economic factors hindering bank’s from lending to the real sector, he stated that Nigerian banks have sufficient human capital to carry out their financial intermediation function.
“Most of us running banks today started banking in the 80s and 90s when merchant banking was the in-thing. Merchant banks at the time lent to the real sector,” he explained.
“The traditional banks in those days especially the big four were heavy on agriculture. They had the competence, track record and history of lending to those segments. Most banks have grown with the recapitalisation exercise. The industry is in a better position to lend now.”
Mr Okonkwo provided valuable insights into the bank’s unique approach to banking Micro Small Medium Enterprises (MSMEs), adding that the bank, seven years ago, set up a dedicated division to manage SMEs.
“We handhold MSMEs, give them access to market and help prepare them for qualification to borrow,” he said.
“Over the years, we have seen massive growth in our SME numbers and our SM loan default rate has been very low because of this approach.”
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) is considering the recapitalisation and restructuring of Development Finance Institutions (DFIs) to address the significant financing gap facing micro, small, and medium-sized enterprises (MSMEs).
The Deputy Governor of the apex bank in charge of Economic Policy, Mr 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 explained that a recent review by the apex bank found that existing DFIs were too small to meet the credit needs of businesses.
DFIs are specialised, government-backed financial entities designed to promote economic growth by funding critical sectors like agriculture, infrastructure, and SMEs. Key institutions include the Bank of Industry (BOI), Development Bank of Nigeria (DBN), Nigeria Export Import Bank (NEXIM Bank), Bank of Agriculture (BOA), National Credit Guarantee Company Limited, and Nigerian Consumer Credit Corporation, among others.
“We conducted a review last year of the development finance space. Across all the DFIs in Nigeria, the total asset base is slightly above N8 trillion, whereas what is required in development finance for MSMEs is over N130 trillion,” he said.
He said that simply injecting capital would not solve the problem.
“The only way to address this is not only through public sector capital injections into these institutions, but also by making them bankable and investable,” he said.
Abdullahi said the CBN and the Ministry of Finance are reviewing DFI structures to improve their efficiency and risk appetite.
“We are reviewing the entire sector to ensure that we can correct the incentives, improve risk appetite, and also strengthen capital levels,” the deputy governor added.
He also said the reforms aim to introduce stronger market-based principles.
“We are looking at the structure to see how more market fundamentals can be incorporated, because the way it has been done in the past has not delivered the desired results,” Mr Abdullahi said.
On the persistent financing challenge for MSMEs, he said lending to the real sector has always been one of the structural challenges “Nigeria’s economy faces in terms of ensuring that credit reaches businesses that require it”.
Business Post reports that the CBN recently concluded the recapitalisation of the Nigerian banking sector, while the insurance sector is ongoing.
By Modupe Gbadeyanka
The women-focused initiative by Sterling Bank, OneWoman, is already yielding positive results, especially in promoting financial inclusion and empowering female-led enterprises in Nigeria.
Business Post reports that the programme was created to support women through three key pillars of capital, capacity, and community.
In 2025, according to the Head of the OneWoman Initiative, Ms Ezinne Nwokafor, the initiative gave out N43.9 billion loans to 2,450 female entrepreneurs, trained 6,000 of them, served about 380,000 women across three sectors of career women, women in business and freshers, and their vision 2030 is to give out N500 billion loans to one million women across their three sectors.
She noted that a significant majority of Nigerian women remain excluded from formal credit, with only a small percentage able to access structured financing. Despite improvements in financial inclusion, women continue to face systemic barriers that limit their ability to secure funding.
Ms Nwokafor pointed out that women account for a substantial share of micro, small, and medium enterprises and contribute meaningfully to the economy, yet face a financing gap estimated at $42 billion annually, according to the International Finance Corporation.
She also referenced data showing that more than half of women-led businesses identify access to finance as a major constraint, while rejection rates for loan applications remain significantly higher for women than for men.
According to her, these challenges are often linked to structural issues such as gaps in asset ownership, social norms, and limited access to financial data and visibility.
“Sterling’s OneWoman initiative is positioned to bridge this gap by combining financial solutions, mentorship, capacity building, and community support for women across different stages of their journey,” she said at the Funding Her Future Breakfast Dialogue in Lagos.
The session brought together voices from across sectors for a focused and necessary conversation on how to unlock more inclusive and effective financing pathways for women-led businesses in Nigeria.
On his part, the chief executive of Sterling Bank, Mr Abubakar Suleiman, said, “Women-led businesses need the right support systems, the right networks, and the right ecosystem to grow with confidence and scale with resilience.”
By Modupe Gbadeyanka
Alpha Morgan Bank has reaffirmed its commitment to supporting institutions that drive intellectual growth and national development.
The lender gave this reassurance at the commissioning of the Redeemer’s University Business School by Pastor (Mrs) Folu Adeboye, the wife of the General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye.
Speaking at the event, the Managing Director of Alpha Morgan Bank, Mr Ade Buraimo, said the company was proud to be associated with the school, noting its commitment to education and institutional development.
As part of its broader focus on knowledge sharing and thought leadership, Alpha Morgan Bank will host its Economic Review Webinar in May 2026, bringing together experts to share insights on key economic trends and opportunities.
The commissioning of the business school was witnessed by distinguished guests, including the Pro-Chancellor and Chairman of the Governing Council of Redeemers University, Professor Oluwatoyin Ogundipe; the Vice Chancellor, Professor Shadrach Olufemi Akindele; Mrs Bola Obasanjo; and other notable dignitaries.
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