Lagos State Governor, Mr. Babajide Sanwo-Olu, has urged commercial banks to develop more accessible credit facilities for small businesses, stressing the need to ensure that entrepreneurs benefit from the stronger banking system following the recapitalisation of financial institutions.
Sanwo-Olu said government intervention alone could not meet the financing needs of the growing business community, calling for stronger collaboration between commercial banks and government to support entrepreneurs through access to finance, enterprise development and capacity building.
The governor spoke on Saturday at the 2026 Chartered Institute of Bankers of Nigeria (CIBN) Fellowship Investiture held in Victoria Island, Lagos, with the theme, “Bank Recapitalisation: Leveraging New Bank Capital for Nigeria’s Industrial Transformation”.
He said Lagos had continued to support entrepreneurs through the Lagos State Employment Trust Fund (LSETF), but emphasised that commercial banks must complement government efforts by developing credit products that address the realities of small businesses.
“We must ensure that smaller businesses benefit from this stronger banking system. Through the Lagos State Employment Trust Fund, we have continued to support entrepreneurs with access to finance, enterprise development and capacity building.
“However, government intervention alone cannot meet the financing needs of our growing business community. We need commercial banks to develop more accessible credit products, support industrial clusters, finance equipment acquisition and strengthen the supply chains that connect small enterprises to larger markets,” he said.
The governor also charged financial institutions to move beyond conventional lending and become active partners in driving private investment, industrial expansion, productivity and employment generation.
He said the recapitalisation of banks had strengthened their capacity to withstand economic pressures and undertake larger transactions, adding that the real test would be how effectively the increased capital was deployed to support productive enterprises and economic opportunities.
“Raising capital is only the beginning. The true measure of success will be how effectively that capital supports productive enterprises, industrial expansion and economic opportunities for Nigerians,” he said.
Sanwo-Olu identified access to affordable, long-term financing as one of the major challenges confronting Nigerian businesses, noting that manufacturers, agricultural processors and growing enterprises required funding models that recognised the time needed for their investments to yield returns.
He urged recapitalised banks to develop financing structures that would support long-term industrial growth while maintaining prudent risk management.
Highlighting investment opportunities in Lagos, the governor pointed to the Lekki Deep Sea Port, expanding industrial activities along the Lekki corridor, investments in rail and road infrastructure, and opportunities created by the Lagos State Electricity Law.
According to him, these developments are creating opportunities in manufacturing, logistics, energy and trade, where increased participation by financial institutions could unlock private investment, improve productivity and create jobs.
“Lagos will continue to provide the infrastructure, policies and enabling environment that businesses require to thrive. But the scale of investment needed to transform our economy demands stronger collaboration between government, financial institutions and private investors.
“We must move from simply having more capital in our banks to putting more capital to work in our economy,” he said.
The governor, however, cautioned that the drive for increased lending and investment must not undermine the integrity of the financial system, insisting that strong capital positions must be supported by sound corporate governance, responsible lending, transparency and professional competence.
He also challenged the CIBN to sustain its role in developing banking professionals with the expertise to understand the financing needs of industry, emerging technologies and the country’s broader development priorities.
At the investiture, 21 recipients were conferred with Honorary Fellowship, while 463 others received Fellowship and 232 were admitted as Honorary Senior Members of the Institute.
Among those conferred with Honorary Fellowship were Deputy Chief of Staff to the Lagos State Governor, Mr. Samuel Egube; Secretary to the Ogun State Government, Mr. Tokunbo Talabi; Governor of the Bank of Sierra Leone, Dr. Ibrahim Stevens; Vice Chairman of Famfa Oil Limited, Apostle (Mrs.) Folorunsho Alakija; and Chairman of Keystone Bank Limited, Lady Ada Chukwudozie.
Sanwo-Olu’s Commissioner for Transportation, Oluwaseun Osiyemi, was also conferred with the Elected Fellowship of the Institute.
Congratulated the recipients, particularly Egube and Osiyemi, describing their recognition as evidence of their competence, dedication and contributions to his administration, he
urged the newly recognised professionals to use their experience to strengthen the institutions they serve, mentor younger professionals and contribute to addressing the country’s economic challenges.
“The banking profession needs leaders who will not only preserve its standards but also help shape its future. Nigeria has recapitalised its banks. The next task is to help recapitalise Nigerian industry.
“The success of this exercise should ultimately be visible in the factories we establish, the businesses we grow, the exports we generate and the opportunities we create for our young people,” the governor said.
Sanwo-Olu also congratulated the CIBN on the successful investiture and commended its leadership for sustaining professional standards in the banking sector.
