Nigeria's financial system fails to allocate credit to high-job-creation businesses

The World Bank has said credit is bypassing the businesses that have the greatest potential to create jobs in Nigeria, urging the financial sector to redirect capital towards productive enterprises and infrastructure. This was the central highlight of the keynote address delivered by Bertine Kamphuis, Lead private-sector development specialist, at the CIBN's 19th annual conference in Abuja. The analysis reveals a severe misalignment between the country's significant liquidity and the areas where it is most needed to stimulate economic growth and employment generation. Businesses in the 'missing middle' and the agricultural sector are being critically under-served by the current financial structure. The World Bank has said Nigeria's financial system is failing to channel sufficient credit to businesses with the greatest potential to create jobs, urging banks and development finance institutions to redirect capital towards productive sectors of the economy. The keynote address at the CIBN conference highlighted that while Nigeria has significant liquidity, credit allocation is misaligned with job creation needs. MSMEs receive only about 1% of credit, while agriculture gets around 6%, despite being key employment drivers. The World Bank emphasized the need to bridge the financing gap for the 'missing middle'-businesses too large for microfinance but too small for standard bank loans-to foster sustainable economic growth and employment