Saturday, January 3, 2026 - The federal ministry of finance said it will assume the development finance quasi-fiscal responsibilities previously held by the Central Bank of Nigeria (CBN), a development which marks a significant shift in the country’s approach to mobilising investment and financing priority sectors.
The move comes nearly two years after the central bank
halted its direct funding of development programs, a decision that had left a
gap in long-term financing for infrastructure, energy, and other strategic
sectors.
In a statement on Thursday, Doris Uzoka-Anite, minister of
state for finance, said the ministry will develop a comprehensive guideline to
implement a “go-forward” development finance strategy.
She emphasised that Development Finance Institutions (DFIs),
will be central to Nigeria’s growth and investment objectives. “Given the scale
of Nigeria’s growth ambition and the need to crowd in long-term, patient
capital estimated at ₦246 trillion through 2036, the Federal
Government recognises DFIs as essential partners in de-risking priority
sectors, anchoring private sector investor confidence, and mobilising large
volumes of private capital at scale,”
Uzoka-Anite said.
DFIs, including the Bank of Industry (BOI) and the Nigerian Export-Import (NEXIM) Bank, will provide long-tenor financing, concessional instruments, technical expertise, and risk-sharing capacity to sectors where private capital has been hesitant to engage despite strong fundamentals, the minister said.
These sectors include infrastructure, energy transition, agribusiness value chains, healthcare, climate-resilient industries, and digital public infrastructure.
The minister outlined a four-pronged strategy to strengthen
domestic DFIs, beginning with improved capitalization and balance sheet
strength to allow them to underwrite larger transactions over longer tenors.
Governance reforms will ensure “stronger boards and performance-linked key
performance indicators,” she said.
The strategy also focuses on enhanced risk-sharing and
credit enhancement powers, and closer alignment with the finance ministry to
provide treasury support, sovereign guarantees, and policy-backed lending.
The ministry intends to leverage both domestic and
international partnerships to mobilise capital and shorten project timelines.
“Strengthen institutional and delivery capacity across ministries, departments,
agencies, and sub-national governments, and align financing with climate
resilience, financial inclusion, and sustainability objectives, consistent with
global development standards,” Uzoka-Anite said.
She added, “Nigeria’s reform momentum, policy clarity, and
execution discipline provides a credible platform for DFIs to deploy capital at
scale, with confidence, and measurable impact.”
The finance ministry’s assumption of development finance
responsibilities follows the CBN’s decision to withdraw from direct
interventions.
Shortly after his appointment, Olayemi Cardoso, CBN
Governor announced the regulator would stop funding development programs.
In December 2023, the apex bank formally suspended the application of new loans
under all existing development intervention schemes, while committing to
recover funds disbursed under earlier intervention programs.
Uzoka-Anite said the federal government remains committed to
supporting DFI-led initiatives aligned with national priorities, while
maintaining policy consistency, institutional coordination, and the
implementation focus required for successful delivery.
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