Feature/OPED
Paradox of Profitability: Nigeria’s Banks, Bogus Earnings, and Recapitalisation Dilemma
By Blaise Udunze
Nigeria’s economy has been buffeted by storms in recent years with currency volatility, galloping inflation, surging interest rates, and dwindling consumer purchasing power. Yet, amid these macroeconomic headwinds, corporate organisations, especially banks, continue to post eye-popping profits.
Five of Nigeria’s top 10 banks reported a combined pre-tax profit of N4.6 trillion in 2024, a 70 per cent increase from the previous year with Zenith Bank and Guaranty Trust Holding Company crossing the trillion-naira mark for the first time.
This paradox raises a fundamental question: how are banks thriving on paper in an economy where businesses are shutting down, households are under severe strain, and government debt is ballooning?
As of the first half of 2025, the banking industry finds itself at a crossroads. Barely months after announcing staggering profit results, some in excess of N500 billion amongst commercial banks are now scrambling to meet the Central Bank of Nigeria’s (CBN) recapitalisation directive. Many are racing back-to-back to the capital market to raise fresh funds.
Behind the strong showing of the market leaders lies a deeper concern: a number of smaller commercial banks and regional players are still struggling to formulate credible recapitalization strategies.
Adding to the puzzle is the CBN’s decision to bar lenders from paying dividends and bonuses, insisting that earnings must be preserved to strengthen capital buffers.
For the average Nigerian, the contradiction is glaring: how can banks boast of record profits yet struggle to raise capital to meet regulatory requirements?
Analysts argue that much of these “profits” are not the outcome of robust productivity or genuine market expansion but rather accounting gains from naira devaluation, speculative positions, high interest rate spreads, loopholes in financial reporting, and arbitrary charges.
Profits on Paper, Weak Capital in Reality
Nigerian banks are witnessing a slowdown in profit growth in 2025 as the extraordinary windfalls from naira devaluation and high interest rates taper off.
Data from the Nigerian Exchange Limited (NGX) show that the combined after-tax profit of nine major lenders, including Zenith, GTCO, Access, UBA, Fidelity, Wema, Stanbic IBTC, FCMB, and FBN Holdco rose marginally by 0.74 per cent to N1.35 trillion in Q1 2025, compared to the record 274.3 per cent surge posted a year earlier.
Much of the earlier profit boom was driven by the floating of the naira in mid-2023 and subsequent devaluations, which allowed banks to book huge foreign exchange revaluation gains simply by holding dollar assets. However, analysts warn these paper gains were non-cash items that added little to banks’ real capital strength.
The apex bank has since barred lenders from deploying such gains for dividends or operating expenses, insisting they be held as buffers against future currency shocks.
With foreign exchange gains now normalising and credit expansion still sluggish, analysts say banks’ reliance on one-off windfalls has exposed underlying weaknesses in core operations such as lending, deposit mobilisation, and fee income.
“The era of abnormal profit growth is over,” said Tony Brown, a banking analyst in Abuja. “The numbers looked strong on paper, but the real test will be how banks sustain earnings through traditional banking activities.”
“The so-called profits are accounting gymnastics,” a Lagos-based analyst said. “They look good in shareholder reports but add little to the core equity needed for recapitalization.”
Banks Profit as Rate Hikes Widen Interest Spreads, squeeze Borrower
Nigerian banks are cashing in on wide interest rate spreads, boosted by the CBN’s tight monetary stance, which has kept the policy rate at 27.5 per cent into 2025. While lending rates have soared into double digits, deposit rates remain low, leaving savers shortchanged and borrowers under pressure.
Analysts say this asymmetric response allows banks to preserve profitability at customers’ expense. “Simply buying government Treasury bills with customers’ deposits was enough for banks to return profit with yields reaching 25 per cent,” said Abuja-based analyst, Chike Osigwe. “On top of that, they charge high lending rates while paying much less to depositors.”
Professor Uche Uwaleke, President of the Capital Market Academics of Nigeria (CMAN), noted that Tier-1 banks are declaring huge profits despite weak economic growth. He warned of a growing disconnect between banks’ fortunes and struggling sectors like manufacturing and agriculture, stressing the need to ensure customers and the real economy share in banking gains.
Mirage of profits powered by Arbitrary Charges
Nigerian banks’ record profits in 2024 have been linked not only to monetary policy tailwinds but also to a surge in arbitrary charges imposed on customers. Despite CBN’s repeated sanctions for breaching its Guide to Charges, lenders continue to rack up billions from fees on transfers, withdrawals, ATM use, account maintenance, SMS alerts, and other deductions.
With over 312 million active bank accounts, these charges now contribute more to profitability than traditional lending or FX operations. Five tier-1 banks alone posted N4.6 trillion in pre-tax profit in 2024, a 69.5 per cent jump from the previous year.
“Banks have turned customers into easy prey,” said financial reform advocate Dr Bruno Agbakoba. Consumer advocate Mrs Toun Adeniran added that households and SMEs are being “drained by unexplained deductions.” A former CBN official admitted enforcement is “a challenge” despite sanctions. In the words of one customer, Nigeria’s banking system has become “a pain in the neck” profitable for lenders, but punishing for households and enterprises struggling to survive in a hostile economic environment.
Critics also warn that this reliance on “blood profits” discourages innovation and credit expansion, further widening the gap between banks’ fortunes and the struggles of businesses and households. Michael Owhoko, a Public Policy Analyst, warned that instead of boosting their image, the massive profits of Nigerian banks are fueling negative public perception, as many views their practices as harmful to individuals and especially small and medium businesses.
Why Banks Are Quietly Rationing Liquidity
Towards month ends, Nigerians are been frustrated by stalled online transfers, frozen mobile apps, and endless queues at ATMs and banking halls. While banks blame “network issues,” analysts say the real problem runs deeper.
With naira devaluation, inflation, and the CBN’s tight monetary stance squeezing liquidity, banks are quietly restricting access to cash to stabilise their books. “When banks throttle withdrawals or delay digital transactions, it is often a survival tactic,” a Lagos-based analyst explained, noting that recapitalization pressures have worsened the strain.
The CBN’s new recapitalisation directive has raised minimum capital thresholds for banks, forcing many institutions to restructure their balance sheets. With dividend payouts curtailed and fresh capital requirements looming, banks are under immense pressure to conserve every naira they can. Restricting customer access through “network downtimes” has quietly become one of the industry’s unspoken strategies.
Banks Race to Meet New Capital Thresholds
With inflation and naira depreciation eroding the old capital base, the CBN has raised minimum capital requirements: N500 billion for international banks, N200 billion for national banks, N50 billion for regional and merchant banks, and N20 billion and N10 billion for national and regional non-interest lenders, respectively. All banks must comply by April 2026.
So far, nine (9) banks: including Access Holdings, Zenith Bank, Stanbic IBTC, Wema Bank, Lotus Bank, Jaiz Bank, Providus Bank, Greenwich Merchant Bank and GTBank have met the target. FirstBank’s oversubscribed rights issue brought in N187.6 billion, with a N350 billion private placement underway. GTBank recently surpassed the benchmark after a N365.85 billion rights issue, raising its capital to N504 billion.
Mid-tier lenders such as FCMB and Fidelity Bank are still raising funds, though analysts expect them to succeed given strong investor appetite. Fitch Ratings noted that most banks are likely to meet the new thresholds ahead of deadline.
While the policy aims to fortify Nigeria’s banking system against shocks, it has exposed the contradiction between glossy profit declarations and actual capital adequacy. If profits were as robust as reported, banks would not be racing to the capital market or wooing investors for fresh injections.
Dividend and Bonus Restrictions
To compound matters, the CBN recently restricted dividend payouts and executive bonuses. This move, while unpopular among shareholders, underscores the regulator’s concern that banks are not retaining enough earnings to build capital buffers.
This temporary suspension, according to the CBN, is part of a broader strategy to reinforce capital buffers, improve balance sheet resilience, and ensure prudent capital retention within the banking sector.
Meanwhile, Nigerian banks paid a record N951 billion in dividends to shareholders in 2024, representing an 87 per cent increase from the previous year.
For investors, it has been a rude awakening. Shareholders were promised juicy returns based on the record profits, but now the CBN is saying those same banks can’t afford to pay dividends. Something doesn’t add up.
Shadows of Creative Accounting in Banking Sector
Allegations of creative accounting continue to dog Nigeria’s banking sector, with analysts warning that dazzling profit numbers may not always reflect underlying reality. While not all institutions engage in such practices, the structural weaknesses of the financial system create room for manipulation.
“The financial sector regularly distorts earnings through creative accounting,” warns Bolatito Bickersteth of research firm Stears. “A significant portion of profit often lies in non-cash items, making true viability difficult to assess.”
One common tactic is the smoothing of earnings through frontloading expenses or deferring liabilities. Provisions for bad loans, for instance, are sometimes delayed, making banks appear healthier than they are. Similarly, loan books are often overstated, with risky credits classified as performing or backed by inflated collateral. This practice was central to the 2009 banking crisis that forced the CBN to sack several CEOs. Mercy Okon, Investment Research Specialist at Parthian Securities, emphasizes the systemic impact, “Huge profits seen in banks were due to unrealized FX gains, heightened interest income, and boosted transaction fees, not necessarily loan growth or real sector lending.”
Another area of concern is tax arbitrage, where lenders exploit gaps between tax rules and CBN guidelines to minimize taxable profits. Beyond that, some institutions reportedly use subsidiaries and offshore accounts to mask losses or inflate revenues, creating balance sheets that look stronger than reality.
Experts also fault the country’s weak auditing culture. Many banks rely on local audit firms with close management ties, raising doubts about independence and compliance with global reporting standards. As a result, governance lapses often escape scrutiny until crises erupt.
The big irony, analysts note, is that while Nigerian banks are declaring record profits, they are simultaneously racing to raise fresh capital under the CBN’s recapitalisation directive.
This contradiction, underscores the distortions created by weak oversight and questionable accounting practices.
The Public Illusion of Prosperity
The paradox points to a deeper credibility gap in Nigeria’s corporate financial reporting. To the public, banks appear prosperous, yet in reality, they are thinly capitalized and vulnerable to systemic shocks.
The irony is not lost on Nigerians who endure soaring lending rates, endless bank charges, and poor service delivery, only to be told that their banks are both profit-rich and capital-poor at the same time.
Way Forward:
To restore trust in Nigeria’s banking sector, regulators must enforce stricter consumer protection policies and closely monitor arbitrary charges. Agencies like the FCCPC and NGOs should actively safeguard customer interests, while the CBN ensures fair pricing and balance between lending and savings rates.
Some existing policies driving excessive fees need urgent review to avoid discouraging use of banking services and undermining the cashless policy, especially in an underbanked society.
Banks, on their part, must prioritize transparency, empathy, and integrity to rebuild reputation, while tighter financial disclosures, stronger corporate governance, and truly independent audits are essential for sustainable growth.
The recapitalization drive is long overdue, especially given the rising risks from a fragile economy, dollar shortages, and exposure to sovereign debt. However, unless transparency improves in financial reporting, the cycle of bogus profits and weak fundamentals will persist.
The recapitalization process should be paired with reforms in disclosure standards and stricter audit independence to ensure that profit figures reflect genuine financial strength.
Until then, the paradox remains: Nigerian banks that claim to be “rolling in profits” are the same institutions struggling to muster the funds needed to secure their future.
Blaise, a journalist and PR professional writes from Lagos, can be reached via: bl***********@***il.com
By Blaise Udunze
Daily, the world watches Nigeria through a familiar lens in what appears to be a gory situation. Especially in cases when the news headlines tell stories of farmer-herder clashes, bandit attacks, kidnappings, villages reduced to ashes or deserted by the dwellers, as thousands of Nigerians have been displaced across states such as Zamfara, Plateau, Benue, Niger, Kaduna and Nasarawa. Subliminally, this is about to become a similarly ugly occurrence in southwestern Nigeria, which is fast becoming obvious if not nipped in the bud quickly.
Recorded data have shown that bandits, Boko Haram, and others killed over 190,000 Nigerians in 17 years and displaced 3.7 million people.
A human rights organisation, the International Society for Civil Liberties and Rule of Law (Intersociety), in its fearful revelation, has said that no fewer than 190,150 Nigerians have been killed by bandits, Boko Haram insurgents, and suspected armed herdsmen between July 2009 and March 19, 2026, as this calls for concern.
The dominant explanations often point to ethnic tensions, religious divisions, climate change, shrinking grazing routes or weak security institutions. No doubt, those factors are certainly part of Nigeria’s complex security crisis. Yet another question deserves serious examination.
What if, in some locations, the violence is also serving another purpose? What if some of the territories experiencing repeated displacement are the same places sitting atop some of Nigeria’s most valuable mineral deposits? More importantly, if such a pattern exists, who benefits when communities disappear?
Of a truth, these questions are uncomfortable, but undeniably they deserve careful investigation rather than dismissal.
For ages, Nigeria has been naturally endowed, and it is estimated to be rich in enormous significant reserves of gold, lithium, uranium, tin, columbite and other strategic minerals increasingly sought after in the global transition to clean energy technologies. As international demand for battery minerals continues to rise, these resources have become far more valuable than they were only a decade ago.
If one overlays publicly available geological information with maps showing persistent violence, some observers argue that striking geographical overlaps appear in several regions. Such overlaps alone cannot establish causation. Correlation is not proof of conspiracy. However, they raise questions worthy of independent scrutiny.
One issue attracting increasing attention and adequately yearns for answer is whether prolonged insecurity may inadvertently or deliberately create conditions that make mineral extraction easier.
Under Nigeria’s Nigerian Minerals and Mining Act 2007, mineral resources belong to the Federal Government, while mining rights are granted through licences and leases. Community engagement and land access are expected to form part of the licensing process, although implementation varies depending on circumstances. This raises an important policy question.
What happens when the communities expected to participate in those processes have already fled because of violence?
Displacement changes the dynamics of land ownership, consent and access. While no evidence automatically proves that attacks are orchestrated to facilitate mining, the sequence of violence followed by renewed commercial activity in some locations deserves closer examination by regulators, lawmakers and investigative journalists.
In conflict studies, researchers have long observed that wars often generate economic winners alongside humanitarian losers. Could elements of Nigeria’s insecurity also be producing economic beneficiaries?
Reports over the years have documented concerns about illegal mining operations across parts of northern Nigeria. Government agencies themselves have repeatedly acknowledged that criminal networks profit from the country’s vast mineral wealth. The unresolved question is whether isolated criminality has, in some instances, evolved into more sophisticated alliances involving political influence, financial interests and international supply chains. If so, the implications extend far beyond Nigeria.
Invariably, it is clearly known that lithium has become one of the world’s most strategic commodities, powering electric vehicle batteries and renewable energy storage systems. Gold has always remained one of the safest global investment assets during periods of uncertainty. Meanwhile, it is well confirmed that the global appetite for these minerals creates enormous financial incentives.
Suppose violent displacement reduces resistance to extraction. Suppose shell companies subsequently acquire mining interests. Suppose minerals then leave Nigeria through legitimate-looking export documentation while their true value remains understated.
These scenarios remain allegations unless supported by verifiable evidence. Yet they outline a framework that investigators may wish to test rather than ignore. Financial crime experts frequently identify trade mis-invoicing as one of the most common methods of illicit financial flows worldwide.
Could Nigeria’s solid minerals sector be vulnerable to similar practices? If valuable lithium ore is deliberately but inaccurately described as lower-value material on export documents, substantial wealth could potentially leave the country without reflecting its true market value. Likewise, if unrefined gold exits through privileged channels with limited scrutiny, questions naturally arise about oversight, transparency and accountability over criminal activities which have continued to stunt and disrupt the country’s socio-economic growth and at the same time cause carnage.
Such possibilities are not accusations against any particular institution or company. Rather, they illustrate why stronger monitoring systems are increasingly essential. Another question concerns logistics.
With the high level of criminal activities, industrial mining requires heavy machinery, diesel supplies, transportation networks and specialised personnel. These are not operations that can remain invisible indefinitely.
If certain territories are genuinely too dangerous for security agencies, how do industrial-scale extraction activities reportedly continue in some remote locations? If they do, who protects those operations? Who authorises their movement? Who verifies what is extracted? Who ensures royalties and export revenues reach public coffers? These are governance questions that demand institutional answers.
Equally important is the international dimension. Minerals extracted in Nigeria ultimately enter global supply chains. Gold may pass through international refining hubs before entering financial markets. Lithium may become part of battery manufacturing destined for electric vehicles, which are being sold across Europe, North America and Asia.
One known fact is that consumers purchasing products containing these minerals rarely know the full story of where they originated.
Increasingly, however, investors and governments are demanding ethical sourcing standards that trace minerals from extraction to final manufacture.
A critical factor that must be taken into cognisance is that if insecurity is creating opportunities for illegal or unethical extraction anywhere in the world, multinational companies have responsibilities alongside national governments, of which the onus falls on the Nigerian government.
Transparency cannot stop at the mine gate. Nor should accountability end at national borders. Another issue requiring attention concerns beneficial ownership.
Across many jurisdictions, shell companies can obscure the identities of individuals ultimately controlling commercial assets. If politically exposed persons or powerful business interests are hidden behind complex corporate structures registered offshore, identifying beneficiaries becomes significantly more difficult. This challenge is hardly unique to Nigeria.
Findings showed that from Latin America to Central Africa and Southeast Asia, resistant corporate networks have frequently complicated efforts to combat corruption and illicit resource extraction. That is precisely why open corporate registries, beneficial ownership databases and transparent mining licence disclosures are becoming global governance priorities. For Nigeria, the stakes could hardly be higher.
The country stands at the centre of the world’s emerging critical minerals economy. The Nigerian government can’t feign ignorance of the fact that, when handled transparently, these resources could finance infrastructure, education, healthcare, and industrial development for generations.
In no way would the government claim not knowing that when handled poorly, they risk becoming another chapter in the well-documented “resource curse,” where extraordinary natural wealth coincides with persistent poverty, insecurity and institutional weakness.
The ultimate challenge, therefore, is not simply about mining. It is about governance. It is about whether public institutions possess both the independence and capacity to ensure that natural resources benefit citizens rather than narrow interests. It is about whether conflict zones receive genuine peacebuilding efforts instead of becoming forgotten frontiers. And it is about whether international markets demand accountability with the same enthusiasm they demand raw materials.
None of these questions should be answered through speculation. They require rigorous investigations, forensic financial analysis, satellite imagery, mining license audits, customs records, beneficial ownership disclosures and courageous journalism.
They require governments willing to open their books. They require international cooperation capable of tracing money across borders. Most importantly, they require asking questions that have too often remained unasked.
Perhaps Nigeria’s security crisis is exactly what it appears to be: a tragic convergence of historical grievances, weak institutions, criminality and environmental pressures. Or perhaps, in some places, another layer of economic incentive deserves closer scrutiny.
Until those questions are thoroughly investigated, one possibility will continue to linger. Maybe the world’s attention has been fixed on the blood spilt above ground, while too little attention has been paid to the extraordinary wealth lying beneath it.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: bl***********@***il.com
Feature/OPED
What Does Nigeria’s $51bn Reserves Milestone Mean if Most New Foreign Money Can Leave Quickly?
Nigeria’s foreign reserves have climbed to about $51 billion, a decade-plus high, according to the Central Bank of Nigeria (CBN). EBC Financial Group (EBC) notes that this reflects stronger investor confidence, but the second half may show whether it holds, as the build rests on three cyclical drivers: oil earnings, short-term foreign money and a narrowing official-to-street naira gap.
Reserves rose from about $32 billion in April 2024, during a dollar shortage, to about $51 billion now, near the CBN’s target. Much came from two cyclical sources, strong oil earnings and money chasing high-yielding naira assets, so EBC expects the pace to slow or reverse. Fitch Ratings, a major international credit rating agency, expects a marginal decline to about $47 billion by the end of 2026, citing higher spending and external pressures.
David Precious, Senior Market Analyst at EBC Financial Group, said, “Nigeria’s reserve build is real but may not be durable yet, because nearly all of the new money is the kind that can leave quickly. Of the $10.37 billion that came in over the first quarter, the overwhelming majority was short-term portfolio funds rather than long-term investment, so a shift in oil prices, global interest rates or confidence in the naira might pull a large part of it straight back out.”
Most New Money Can Still Leave Quickly
The composition of the foreign inflows explains the caution over how long the build can last. The country attracted $10.37 billion in foreign investment in the first quarter of 2026, up 83.83 per cent year-on-year, according to the National Bureau of Statistics (NBS). Of that, $9.86 billion or 95.09 per cent, was portfolio money, largely short-term naira debt such as Treasury bills that investors can sell at the next auction, while foreign direct investment, the long-term kind that builds factories and jobs, was $135.08 million, or 1.30 per cent. Put simply, of each dollar coming in, about 95 cents can leave quickly, and barely one cent stays.
That money supports reserves while it stays. Dollars brought in to buy naira assets add to market supply, letting the CBN hold more reserves and steady the naira. It leaves when conditions change. Nigeria earns most of its export dollars from oil and gas, so lower oil prices mean fewer dollars, and as a member of the Organisation of the Petroleum Exporting Countries (OPEC), it cannot simply produce more, output capped by quota and reduced by theft and ageing fields. Higher global interest rates draw money toward safer returns abroad, and a weakening naira prompts investors to sell early. When oil fell in 2016 and 2020, foreign investors withdrew and could not convert naira to dollars as supply dried up, leaving the CBN to clear more than $7 billion in trapped obligations into 2024.
The Oil Boost is No Longer Certain
Oil looked like a dependable source of the dollars behind the reserves only months ago. Earlier in 2026, concern over disruption around the Strait of Hormuz lifted crude prices, and stronger receipts flowed in, with crude oil export earnings of $8.11 billion in the first quarter in the CBN’s balance-of-payments data. That support is now easing. The tension has subsided, and Brent traded near $72 on June 29, down about 24 per cent over the month, back to pre-conflict levels. With the price boost gone and output constrained, reserves are more exposed, leaning on non-oil earnings and investor patience rather than oil.
The Naira Still Trades at Two Prices
The naira has traded at two prices, an official rate and a higher parallel-market rate, and closing that gap into one trusted price is what many investors might watch most. Before committing funds, they may want assurance they can convert naira to dollars at a fair rate when they exit, and a wide gap revives the fear of being trapped that lingers from earlier shortages. The gap has narrowed to roughly N20 to N30, with the CBN’s official rate near N1,380 per dollar on June 26 against parallel-market quotes around N1,400. The International Monetary Fund (IMF) 2026 Article IV review urged Nigeria to depend less on this fast-moving portfolio money and to keep phasing out its multiple exchange-rate practices. The CBN’s Foreign Exchange Manual, in force from 1 June, is intended to make the market clearer, though such rules build confidence only once investors can freely trade dollars at the posted rate.
What could Make the Build Durable
A few signs that may show the build turning durable include a smaller gap between the official and street naira rates, more long-term foreign investment, and steadier oil earnings. A gap that stays small, now roughly N20 to N30, may mean investors trust the official rate and no longer need the street market. A clear rise in foreign direct investment, only $135 million last quarter against $9.86 billion of short-term money, might mean lasting capital is replacing funds that can leave at the next auction. Oil earnings that hold up, rather than sliding from the low $70s, should help keep reserves steady, since oil and gas bring in most of Nigeria’s export dollars.
“Reserves built on money chasing high yields can fall as fast as they rose, as they did after the last two oil shocks, when investors left, and the CBN spent years clearing a foreign-exchange backlog,” Precious added. “What holds through a downturn is slower money, direct investment, steady oil and non-oil export earnings and one credible naira rate, and that is the shift Nigeria has yet to make.”
By Olajumoke Bello
Across Nigeria, small and medium enterprises remain the backbone of economic activity. They drive trade, create jobs, and sustain millions of livelihoods. Yet, despite their importance, many SMEs continue to operate below their full potential due to persistent structural challenges.
Access to finance remains one of the most cited constraints. However, the issue today goes beyond the availability of capital. Many businesses struggle with financial readiness, weak documentation, and limited understanding of what lenders require. This often leads to missed opportunities, even when funding options exist.
At the same time, SMEs face gaps in market access and visibility. Business owners operate in highly localised environments, with limited exposure to broader networks that can unlock partnerships, new markets, and growth opportunities. This isolation can constrain scalability and reduce long-term competitiveness.
Equally important is the capability gap. Many entrepreneurs grow through resilience and experience but lack structured knowledge on critical areas such as financial management, export readiness, and digital adoption. Without this, even well-capitalised businesses can struggle to sustain growth.
These challenges point to a clear need for a more practical and integrated approach to SME support. It is no longer sufficient to offer standalone solutions. SMEs require ecosystems that combine knowledge, access, and direct engagement in ways that reflect how they actually operate.
A key shift is the move from centralised interventions to localised engagement. SMEs are deeply influenced by their immediate environments, whether markets, industrial clusters, or trade corridors. Solutions must therefore be brought closer to where these businesses function, allowing for more relevant support and stronger relationships.
Another important shift is from awareness to action. Business owners do not only need information; they need insights that they can apply immediately. This includes understanding how to structure their finances, how to access trade opportunities, and how to connect with the right partners to scale their operations.
There is also a growing need for continuity. Many SME-focused initiatives deliver strong initial impact but lack follow-through. For support to be effective, it must extend beyond one-off engagements into sustained relationships, with clear pathways for onboarding, advisory, and growth.
For financial institutions, this presents both responsibility and an opportunity. Supporting SMEs now requires moving beyond transactional banking to deeper partnership models. It requires understanding businesses at a granular level and co-creating solutions that evolve with their needs.
At Stanbic IBTC, this perspective continues to shape our approach to SME development. Our focus is on delivering practical support that translates into real business outcomes, helping enterprises grow, compete, and contribute more meaningfully to the economy.
As part of this commitment, we are extending our SME engagement to the regions through the Nigeria Business Summit Regional Tour. The tour will take structured, on-ground activations into key commercial hubs, where SMEs can access funding guidance, trade insights, advisory support, and direct engagement with financial experts.
The regional tour will take place across five strategic locations, bringing these solutions closer to business owners in Aba, Onitsha, Ibadan and Kano.
This approach reflects an important principle. When support moves closer to businesses and when solutions are delivered in ways that are practical and continuous, SMEs are better positioned to grow sustainably. In turn, this strengthens not only individual enterprises but the broader economy.
Olajumoke Bello is the Head of Enterprise Banking at Stanbic IBTC Bank
