CBN to restructure DFIs as government introduces mass savings scheme

*Wale Edun, Minister for Finance and Coordinating Minister of the Economy, affirms that alternative funding options, including domestic savings mobilisation and equity participation will play a larger role going forward, especially as the Federal Government seeks to crowd in private capital in the Nigerian economy

Isola Moses | ConsumerConnect

As part of monetary initiatives to meet the credit needs of businesses, the Central Bank of Nigeria (CBN) has announced it is considering the recapitalisation and restructuring of Development Finance Institutions (DFIs).

The key objective of the move is to address the significant financing gap facing Micro, Small, and Medium-sized Enterprises (MSMEs) in the West African country.

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Muhammad Abdullahi, Deputy Governor, Economic Policy at CBN, disclosed this development Tuesday, April 7, 2026, at a panel session at the launch of the Nigeria Development Update by the World Bank in Abuja, FCT.

Abdullahi noted that CBN’s recent review found that existing DFIs were “too small” to meet the credit needs of businesses in the country’s economy.

The Bank’s Deputy Governor, Economic Policy also said: “We conducted a review last year of the development finance space.

“Across all the DFIs in Nigeria, the total asset base is slightly above N8tn, whereas what is required in development finance for MSMEs is over N130 trillion.”

Nigeria unveils mass savings scheme

Meanwhile, the Federal Government has unveiled plans to introduce a mass savings scheme, aimed at reducing reliance on borrowing and expanding domestic investment in the country.

Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, speaking at the launch of the Nigeria Development Update, explained the initiative would enable Nigerians across income levels to invest and earn returns while supporting economic growth.

Edin said: “There are mass savings schemes which allow people at all levels of society to save and earn unearned income, including from companies such as refineries and other large firms listed on the stock exchange.”

The Minister also stated: “Alternative funding options, such as domestic savings mobilisation and equity participation would play a larger role going forward, especially as the government seeks to crowd in private capital.”

The initiative, noted he, aligns with broader reforms aimed at strengthening public finances, including improved revenue tracking and expenditure control in Nigeria.

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