Federal Ministry of Finance is set to take over development finance responsibilities previously handled by the Central Bank of Nigeria, CBN. The move marks a major policy shift aimed at mobilising long-term funding for critical sectors of the economy
The Federal Ministry of Finance says it will assume the development finance and quasi-fiscal roles earlier carried out by the CBN following the apex bank’s withdrawal from direct intervention funding.
This comes nearly two years after the CBN halted funding for development programmes, a decision that created financing gaps in key sectors of the economy.
In a recent statement, the Minister of State for Finance, Doris Uzoka-Anite, said the ministry will roll out new guidelines to drive a forward-looking development finance strategy.
She noted that development finance institutions, DFIs, including the Bank of Industry and the Nigerian Export-Import Bank, will be central to mobilising long-term capital needed to support economic growth.
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According to the minister, Nigeria requires about ₦246 trillion in long-term investment by 2036, stressing that DFIs are critical to de-risk priority sectors and attract private capital at scale.
Uzoka-Anite said the institutions will provide long-tenor financing, concessional funding, technical support, and risk-sharing instruments for sectors where private investors have been cautious.
These sectors include infrastructure, energy transition, agribusiness, healthcare, climate-resilient industries, and digital public infrastructure.
She added that the strategy will focus on stronger capitalisation of DFIs, improved governance, enhanced risk-sharing powers, and closer coordination with the finance ministry, including treasury support and sovereign guarantees.
The development follows the Central Bank’s policy shift under Governor Olayemi Cardoso, who announced the suspension of development intervention programmes. In December 2023, the CBN formally stopped new loans under existing schemes, while moving to recover funds already disbursed.
The finance ministry says it remains committed to supporting DFI-led initiatives aligned with national development priorities.
(Editor: Terverr Tyav)
