The Centre for the Promotion of Private Enterprise (CPPE) says Nigeria’s development finance system needs an overhaul to address a large financing gap affecting the real sector. In a policy brief, CPPE’s chief executive, Dr. Muda Yusuf, estimates that the gap is about N50 trillion and argues that the problem is rooted in structural market failures rather than a simple lack of money. CPPE urges the Central Bank of Nigeria (CBN) and policymakers to rethink how development finance is designed and delivered.
According to CPPE, key constraints include high lending rates, short loan tenors, stringent collateral requirements, and limited risk appetite among lenders. It also points to inadequate “patient capital,” which typically refers to longer-term funding suited to productive investment cycles. The organization’s position emphasizes that reforms to Nigeria’s development finance architecture and funding channels are required to improve access to finance for productive sectors and to reduce the factors that keep firms from borrowing on sustainable terms.
Both reports present CPPE’s central claim and its call for change in development finance policy, particularly involving the CBN.
