• About Us
  • Contact Us
  • Privacy & Policy
Thursday, June 26, 2025
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
Advertisement
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
No Result
View All Result

Recapitalisation To Lift Private Sector’s Credit Above 13%

Martins Nwakaji by Martins Nwakaji
October 14, 2024
in Economy, News
Reading Time: 3 mins read
A A
0
Recapitalisation To Lift Private Sector’s Credit Above 13%
Share on FacebookShare on TwitterShare on WhatsappShare on EmailShare on Telegram


Nigeria’s private sector is currently grappling with a substantial credit shortfall, with domestic lending to this sector at a mere 13% of Gross Domestic Product (GDP).

This figure is considerably lower than the global average, indicating a pressing need for improvement. Yemisi Edun, the managing director of First City Monument Bank (FCMB), has expressed optimism that ongoing recapitalization efforts within the banking sector will raise this lending threshold above the current 13%.

During her remarks at the 17th Annual Banking and Finance Conference held in Abuja, Edun underscored the critical nature of this credit gap and its implications for the nation’s economic growth.

She pointed out that in comparison to countries with economies exceeding a trillion dollars—where private sector lending typically reaches around 80% of GDP—Nigeria’s situation appears particularly challenging.

Edun emphasized that the recapitalization of Nigerian banks is vital for mitigating this credit shortfall. She specifically noted the importance of boosting private sector credit as a catalyst for economic development, particularly for Small and Medium-sized Enterprises (SMEs).

“In the country, SMEs, which play a major role in employment and economic growth, are struggling with limited access to credit. With the recapitalization of banks, there will be more capacity to offer affordable loans to SMEs, enabling them to grow and contribute more effectively to GDP,” she stated.

Furthermore, Edun elaborated on Nigeria’s ambition to evolve into a $1 trillion economy, asserting that the financial services sector must outpace the overall economy’s growth to achieve this goal.

“Financial services account for around 4.7% of GDP. For the sector to hit a target of 5.5% by 2030, it would need to grow by more than 18% annually,” she explained. The current recapitalization, anticipated to enhance the banking sector’s shareholders’ funds by over 50%, will play a pivotal role in facilitating this necessary growth.

With an expanded capital base, banks will be in a stronger position to meet the financing needs of critical sectors such as infrastructure and manufacturing, which are essential for Nigeria’s long-term economic development.

In addition to traditional lending practices, Edun advocated for exploring alternative financing mechanisms. She mentioned the potential benefits of joint ventures, venture capital, and loan guarantee schemes as vital supports for high-potential SMEs. “Diverse funding options, including equity and debt partnerships, are essential for overcoming the capital constraints many businesses face,” she recommended.

Addressing the infrastructure deficit, Edun pointed out that Nigeria requires approximately $100 billion each year to tackle these challenges effectively.

She suggested that banks collaborate to issue long-term infrastructure bonds and engage in public-private partnerships (PPPs) to bridge this funding gap.

Looking to the future, Edun highlighted the importance of investing in technology and human capital to enhance the financial services sector.

“Digital transformation and automation are critical for the future of financial services. Innovations like artificial intelligence will play a key role in enhancing efficiency and expanding access to underserved populations,” she asserted.

Tags: businessnigeria
Martins Nwakaji

Martins Nwakaji

Related Posts

Peter Obi Slams Tinubu Over Deepening Lawlessness, Cites Demolition of Brother’s Property in Lagos
News

Lagos State Government Denies Demolishing Property Allegedly owned to Peter Obi’s Brother, Orders Investigation

8 hours ago
Gospel Artist sentenced to Death for beheading NYSC Girlfriend
News

Gospel Artist sentenced to Death for beheading NYSC Girlfriend

8 hours ago
17 Soldiers Killed as Bandits Attack Military Bases in Niger State
National

17 Soldiers Killed as Bandits Attack Military Bases in Niger State

17 hours ago
MultiChoice Slashes DStv Decoder Price by 50%
Entertainment

MultiChoice Slashes DStv Decoder Price by 50%

1 day ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

NATIONS NEWS

Tinubu can’t find solution to Nigerians’ suffering, says Group 
National

Tinubu to Sign Tax Reform Bills, Transforming Nigeria’s Revenue and Business Environment

12 hours ago
17 Soldiers Killed as Bandits Attack Military Bases in Niger State
National

17 Soldiers Killed as Bandits Attack Military Bases in Niger State

17 hours ago
Peter Obi Slams Tinubu Over Deepening Lawlessness, Cites Demolition of Brother’s Property in Lagos
National

Peter Obi Slams Tinubu Over Deepening Lawlessness, Cites Demolition of Brother’s Property in Lagos

2 days ago
Benue Police Launch Drone Rescue Operation for Kidnapped Travellers
National

Benue Police Launch Drone Rescue Operation for Kidnapped Travellers

2 days ago
Atiku to Tinubu: Tell Nigerians the Truth About Your ‘Chicago Classmate’ claim
National

Atiku to Tinubu: Tell Nigerians the Truth About Your ‘Chicago Classmate’ claim

2 days ago
Hunger and Poverty Driving Nigeria’s Insecurity, Says NSA Ribadu and Defence Chief Musa
National

Hunger and Poverty Driving Nigeria’s Insecurity, Says NSA Ribadu and Defence Chief Musa

2 days ago

POLITICS

PDP Crisis Deepens as NWC Members Reject Anyanwu

PDP Crisis Deepens as NWC Members Reject Anyanwu

17 hours ago
President Tinubu should Declare State of Emergency in Benue – Security expert Babaeko

2027 ELECTIONS: Tinubu Dismisses 2027 Coalition, Calls Opponents Political IDPs

17 hours ago
INEC Receives 110 Applications from Associations Seeking Registration as Political Parties Ahead of 2027 Elections(see list)

INEC Receives 110 Applications from Associations Seeking Registration as Political Parties Ahead of 2027 Elections(see list)

1 day ago
PDP Crisis: PDP Confirms Samuel Anyanwu as National Secretary

PDP Crisis: PDP Confirms Samuel Anyanwu as National Secretary

1 day ago
Reno Omokri is a delusional liar, talks rubbish nonstop – Segun Showunmi

Reno Omokri is a delusional liar, talks rubbish nonstop – Segun Showunmi

2 days ago
SDP Suspends National Chairman Gabam Over Alleged ₦100M Fraud

SDP Suspends National Chairman Gabam Over Alleged ₦100M Fraud

2 days ago

YOUR ECONOMY

IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s
Economy

IPMAN: Dangote’s New Delivery Plan Will Bring Cheaper Fuel to Nigerians’s

6 days ago
Enforce Transparent Pump Pricing, oil marketers Cheating Nigerians, PENGASSAN laments
Economy

Enforce Transparent Pump Pricing, oil marketers Cheating Nigerians, PENGASSAN laments

1 week ago
PETROAN kicks against Dangote’s petrol distribution strategy
Economy

PETROAN kicks against Dangote’s petrol distribution strategy

1 week ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

Dangote Refinery Begins Distribution of Petrol Nationwide

2 weeks ago
Nigeria Stock Exchange to Partner with Hong Kong’s Stock market
Economy

Nigeria Stock Exchange to Partner with Hong Kong’s Stock market

2 weeks ago
Dangote refinery is Tinubu’s brainchild – Aliko
Economy

Dangote refinery is Tinubu’s brainchild – Aliko

3 weeks ago

E & P

Cristiano Ronaldo Extends Al Nassr Contract, Commits to Saudi Pro League Project Until 2027
Sports

Cristiano Ronaldo Extends Al Nassr Contract, Commits to Saudi Pro League Project Until 2027

by Steven Atogi
8 hours ago
0

Cristiano Ronaldo has officially extended his stay at Al Nassr, signing a fresh Cristiano Ronaldo Al Nassr contract until 2027.The...

MultiChoice Slashes DStv Decoder Price by 50%

MultiChoice Slashes DStv Decoder Price by 50%

1 day ago
Favour Ofili Dumps Nigeria for Turkey After AFN’s Olympic Blunder

Favour Ofili Dumps Nigeria for Turkey After AFN’s Olympic Blunder

4 days ago
Napoli Eye Darwin Nunez Transfer to Strengthen Attack for 2025 Serie A Title Defense

Napoli Eye Darwin Nunez Transfer to Strengthen Attack for 2025 Serie A Title Defense

5 days ago
Breaking: Barcelona Sign Catalan Goalkeeper Joan García for €25m After Domestic Treble Success

Breaking: Barcelona Sign Catalan Goalkeeper Joan García for €25m After Domestic Treble Success

1 week ago
Trent Alexander-Arnold unveiled for Real Madrid

Trent Alexander-Arnold unveiled for Real Madrid

2 weeks ago

YOUR THOUGHT & HISTORY

The Emerging Kogi: Economic Growth Impact Transforming Better Reality
Columns

The Emerging Kogi: Economic Growth Impact Transforming Better Reality

by Kiikpoye Karibo
1 day ago
ON THE PUBLIC NUISANCE CALLED SOWORE
Opinion

ON THE PUBLIC NUISANCE CALLED SOWORE

by Kiikpoye Karibo
4 months ago
Data Visualizations
Columns

Five Key Considerations for Creating Effective Data Visualizations

by Blessing Chinyere Daniel
5 months ago
The Transformative Power of AI in Revolutionizing Industries and Empowering Growth
Columns

The Transformative Power of AI in Revolutionizing Industries and Empowering Growth

by Blessing Chinyere Daniel
6 months ago
Navigating the Turbulent Terrain of Entrepreneurship: The Power of Tenacity, Growth Mind-set, and Grit
Columns

Navigating the Turbulent Terrain of Entrepreneurship: The Power of Tenacity, Growth Mind-set, and Grit

by Uloma Harrison-Ikenwanze
7 months ago

Who we are

Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history

Welcome to Umpire News, your go-to online newspaper dedicated to broadening perspectives and expanding the horizons of our numerous readers. Read more

Browse by Category

  • Columns
  • Economy
  • Editorial
  • Entertainment
  • International
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Trends

Recent News

Peter Obi Slams Tinubu Over Deepening Lawlessness, Cites Demolition of Brother’s Property in Lagos

Lagos State Government Denies Demolishing Property Allegedly owned to Peter Obi’s Brother, Orders Investigation

June 26, 2025
Cristiano Ronaldo Extends Al Nassr Contract, Commits to Saudi Pro League Project Until 2027

Cristiano Ronaldo Extends Al Nassr Contract, Commits to Saudi Pro League Project Until 2027

June 26, 2025
  • About Us
  • Contact Us
  • Privacy & Policy

© 2024 Copyright Umpirenews. All rights reserved

No Result
View All Result
  • Home
  • National
  • Economy
  • Politics
  • Sports
  • Entertainment
  • Editorial
  • Opinion
  • Columns

© 2024 Copyright Umpirenews. All rights reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
🤑Join & Get Our Easter Gifts 🤑

Enter your NAME & Email NOW!!

Be among the 1st 100 lucky WINNERS to win our Amazing GIFTs this Easter Period as you READ our Daily hot NEWs & make meaningful comments and follow us on our social media handles.

Name
Enter your email address