The Centre for the Promotion of Private Enterprise (CPPE) has warned that Nigeria’s productive economy is facing a financing gap exceeding ₦50 trillion, calling on the Federal Government and the Central Bank of Nigeria (CBN) to urgently overhaul the country’s development finance architecture.
In a policy brief released on Sunday, CPPE said the shortage of affordable long-term financing was crippling manufacturing, agriculture, agribusiness, small businesses and export-oriented enterprises.
According to the economic think tank, the financing crisis is not merely a liquidity challenge but evidence of deep structural weaknesses in Nigeria’s financial system.
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CPPE said manufacturers and farmers remain locked out of affordable credit because of prohibitively high lending rates, short loan tenors, excessive collateral requirements and weak appetite for long-term investment by commercial banks.
It estimated that the country’s unmet financing needs across manufacturing, agriculture, MSMEs, supply chains and export businesses now exceed ₦50 trillion.
The organisation argued that commercial banks cannot solve the problem alone because they rely mainly on short-term deposits, while industries require financing spanning five to ten years or longer.
It noted that agriculture contributes more than one-fifth of Nigeria’s Gross Domestic Product but has historically received less than five per cent of total banking sector credit.
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Similarly, manufacturers require long-term financing for factory expansion, machinery acquisition, technology upgrades, energy infrastructure and export development.
CPPE maintained that such investments cannot be financed sustainably with commercial loans carrying double-digit interest rates.
