Microfinance banks have urged the Federal Government and the Central Bank of Nigeria (CBN) to expand intervention funding and introduce a more supportive regulatory framework, saying the measures are critical to increasing affordable credit for businesses, deepening financial inclusion and sustaining the growth of Nigeria’s economy.

The newly-elected President of the National Association of Microfinance Banks (NAMB), Dr Adenrele Oni, appealed at the weekend during an interactive session with journalists on the sidelines of the association’s 16th Annual General Meeting in Abuja.

He said while the current administration, the CBN and the Nigerian Deposit Insurance Corporation (NDIC) have continued to support the sector through ongoing monetary reforms, more assistance is needed to enable microfinance banks to play their development role more effectively.

According to him, increased intervention funds would allow microfinance banks to extend cheaper loans to businesses and individuals, with positive effects on economic growth, while a more-friendly regulatory environment would improve the operations of the institutions.

He added that with stronger government and regulatory support, microfinance banks would be better positioned to deepen financial inclusion, improve socio-economic conditions at the grassroots and support the sustainable growth of micro, small and medium enterprises (MSMEs).

Oni, who is also the Managing Director of Richway Microfinance Bank Limited, said the industry has recorded significant growth despite the micro and macroeconomic challenges it has faced over the years.

According to him, the sector’s balance sheet has expanded from less than N300 billion about five years ago to more than N6 trillion, while its loan portfolio stood at N2.4 trillion as of March 2026 and total deposits had risen to about N4.3 trillion.

To strengthen public confidence in the sector, Oni said the association would intensify advocacy campaigns to educate more Nigerians on the role of microfinance banks in national development.

The outgoing President of NAMB, Abubakar Ahmad, credited the association’s progress to the regulatory guidance and support of the CBN and the NDIC.

He said the association also strengthened partnerships with development organisations, including WASH and Atmosfair, to improve capacity building and industry development.

Ahmad, however, said more work remains to strengthen the industry, stressing the need for stronger institutions, improved corporate governance, digital transformation, better risk management, increased capitalisation and sustained advocacy for policies that will support the growth of microfinance banking.