Nigerian financial institutions must look beyond conventional lending and become more active partners in unlocking private investment, improving productivity and creating jobs across the different sectors of the economy, Babajide Sanwo-Olu, the Lagos State governor, has said.

For Sanwo-Olu, recapitalised banks should develop financing models that support long-term industrial growth without compromising prudent risk management, and ensure that smaller businesses benefit from this stronger banking system.

He spoke at the 2026 Chartered Institute of Bankers of Nigeria (CIBN) Fellowship Investiture with the theme, “Bank recapitalisation: Leveraging new bank capital for Nigeria’s industrial transformation”, held in Lagos, where 21 recipients were conferred with Honorary Fellowship, while 463 and 232 received new Fellows and Honorary Senior Membership of the Institute, in recognition of professional excellence, leadership and contribution to the development of the financial system and national economy.

He said: “Recapitalisation has strengthened the capacity of our banks to withstand economic pressures and undertake larger transactions. But 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.

“One of the greatest challenges facing Nigerian businesses remains access to affordable, long-term financing. Manufacturers need capital to acquire machinery, expand production and compete in international markets. Agricultural processors need financing for storage, processing and distribution, while growing enterprises require credit that reflects their business realities. These investments take time to generate returns. Our recapitalised banks must therefore develop financing models that support long-term industrial growth without compromising prudent risk management.”

“In Lagos, we see enormous opportunities for this kind of investment. The Lekki Deep Sea Port, expanding industrial activities along the Lekki corridor, our investments in rail and road infrastructure, and the opportunities created by the Lagos State Electricity Law are opening new possibilities for manufacturing, logistics, energy and trade. These are sectors where stronger participation by financial institutions can unlock substantial private investment, improve productivity and create employment.

The governor stressed the need for smaller businesses to benefit from the banking system, adding that in Lagos, the State Employment Trust Fund has been of immense support to entrepreneurs, supporting them with finance 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.

“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 emphasised integrity and probity, saying, “Strong capital positions must be accompanied by sound corporate governance, responsible lending, transparency and professional competence. This is where the Chartered Institute of Bankers of Nigeria has a particularly important responsibility. Beyond professional certification and recognition, the Institute must continue to develop bankers who understand the financing needs of industry, emerging technologies and the wider development priorities of our country.”

Among the recipients of the Honorary Fellows of the CIBN were Samuel Egube, the deputy chief of staff to Governor Sanwo-Olu; Tokunbo Talabi, Secretary to the Ogun State Government; Ibrahim Stevens, Governor, Bank of Sierra Leone; Folorunsho Alakija, vice chairman, Famfa Oil Limited.