SPONSOR ADAbove suggests Nigeria faces a troubling paradox: banks are flush with cash, yet manufacturers, agriculture and small businesses are starving for credit. Banks now earn 40% of their interest income from government securities rather than lending to businesses. The manufacturing sector reveals the actual damage as the Purchasing Managers’ Index (PMI) dropped from 112 to 105.8 points in January, while the broader private sector contracted for the first time in a year. Immediately, regulators should penalize banks that hoard government securities while starving the real sector. Enhanced credit guarantees would reduce banks’ perceived risks when lending to small businesses.

Source: The Guardian February 10, 2026 02:05 UTC