Weak Legal Frameworks Threaten Business Financing – FirstBank

The Managing Director and Chief Executive Officer of FirstBank Nigeria, Olusegun Alebiosu, has said that weak legal and institutional frameworks are limiting the ability of banks to provide adequate financing to businesses, particularly small and medium-scale enterprises (SMEs). He stressed that the challenge of financing businesses goes beyond the capacity or willingness of banks to lend, and that government, the judiciary, and other institutions must create a trusted and predictable business environment where contractual obligations are enforceable. Alebiosu spoke against the backdrop of concerns over limited access to credit by businesses, especially SMEs, which often face difficulties meeting banks' collateral and risk-management requirements. According to him, the operating environment and laws governing business transactions are critical to determining the extent to which financial institutions can extend credit to the economy.

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