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In this interview, Ola Olabinjo, Founder and Chief Executive Officer of Skystone Finance Company Limited, discusses the Nigerian policy and investment climate over the past few years. Jide Akintunde, Managing Editor of Financial Nigeria magazine, interviewed him. 

Jide Akintunde (JA): Nigeria’s macroeconomic indicators have gyrated wildly over the last three years, from the exchange rate to interest rate and inflation rate. The data is getting better now. But what is your view on the dramatic changes in the macroeconomy?

Ola Olabinjo (OO): Nigeria has made meaningful progress toward macroeconomic stability in recent times, evidenced by lower inflation (15.15%), external reserves accretion, and a stronger naira (appreciated to below ₦1,400/US$ from a peak of about ₦1,900/US$). Bold economic reforms have largely driven this improvement. Over the past three years, the government has implemented measures such as the removal of fuel subsidies, liberalisation of the foreign exchange market, and renewed fiscal and institutional adjustments. While these reforms were initially challenging and came with unintended consequences (most notably higher inflation and rising living costs), they have begun to restore policy credibility, improve transparency, and re-anchor investor confidence in the Nigerian economy.

However, while policy and macroeconomic indicators are improving, reform alone is not the end goal. The ultimate measure of success will be the extent to which these reforms translate into tangible benefits for Nigerians, in terms of stable prices, expanding economic opportunities, competitive industries, and improved living standards.

In other words, Nigeria now faces the task of transforming macroeconomic stability into sustained, inclusive growth. Stability lays the foundation, but impact matters most. If reforms do not result in better livelihoods, more jobs, and stronger private sector participation, then the work remains incomplete. My view is that the foundation has been laid; the next phase requires deliberate efforts to convert stability into prosperity, ensuring that both businesses and households feel the benefits of reform in their daily lives.

JA: How did Skystone Finance – and the broader financial services industry, including the banks – weather the policy storm?

OO: The reforms delivered a mix of positive and negative doses for the financial services sector, particularly the banking industry. While the policy shifts created earnings opportunities for financial institutions, they also introduced significant pressures that tested balance sheets and risk management frameworks.

On the positive side, the liberalisation of the foreign exchange market led to significant FX revaluation gains for many banks, supporting profitability and capital buffers. In addition, the tight monetary policy environment proved beneficial from an income perspective. Elevated interest rates improved yields on fixed-income instruments, particularly Treasury bills, prompting many banks to rebalance their portfolios toward these high-yielding, relatively low-risk assets. This helped stabilise earnings during a period of macroeconomic volatility.

However, these gains were accompanied by significant challenges. High interest rates, FX depreciation, rising operating costs, and weaker consumer demand placed considerable strain on businesses across the economy. Borrowing costs rose sharply, credit demand slowed, and debt-servicing pressures intensified. As a result, banks experienced higher impairment charges, reflecting increased loan restructurings and elevated default risks, particularly among corporates and SMEs that were negatively impacted by the cost environment. Loan growth moderated significantly, and risk appetite became more restrained.

For finance companies like Skystone Finance, the experience mirrored many of these dynamics, albeit without the benefit of FX revaluation gains. On the positive side, we benefited from higher yields on fixed-income securities, which supported investment income and liquidity management. However, the broader impact of high interest rates and currency depreciation on our customers, particularly SMEs, was significant. Many businesses faced rising input costs, weaker cash flows, and increased debt-servicing burdens. This translated into higher credit risk and elevated impairment charges, as some obligors struggled to meet repayment obligations or required restructuring support.

Our response was deliberately cautious and client-focused. We prioritised asset quality, liquidity preservation, and proactive customer engagement, working closely with viable businesses to navigate the challenging environment while strengthening our internal risk controls.

JA: Many businesses struggled to cope, not least SMEs. As a finance company serving this sector, what key insights have you drawn from this period of policy risk and economic and corporate rebalancing?

OO: This period has been deeply instructive for us, particularly given our strong exposure to SMEs, which arguably bore the brunt of the policy adjustments and economic rebalancing. One of the most important insights is that policy risk is real and can quickly be transmitted to the balance sheets of small and medium-sized businesses. Unlike large corporates, most SMEs have limited buffers, weaker pricing power, and less flexibility to absorb sudden cost increases or volatility in the operating environment.

The combination of high inflation, FX depreciation, elevated interest rates, and rising energy and input costs significantly compressed margins for many SMEs. At the same time, weaker consumer purchasing power reduced demand for goods and services, creating a double squeeze in revenues and cash flows. This environment exposed structural vulnerabilities in many businesses, particularly those with currency mismatches, short-term debt structures, or weak working capital management.

Another key lesson is the importance of financial resilience and adaptability. SMEs that survived and, in some cases, even grew were those that could quickly adjust their business models, renegotiate supply chains, manage costs more aggressively, and engage proactively with financiers. Many businesses also became more open to alternative financing structures, such as commercial paper issuance or blended financing solutions, rather than relying solely on traditional bank loans.

From a lender’s perspective, this period reinforced the need to go beyond transactional lending. Relationship-based financing, close monitoring, and early engagement became critical. At Skystone Finance, we learned that supporting SMEs through periods of stress often requires flexibility, through loan restructuring, advisory support, and realistic cash-flow assessments, rather than rigid enforcement. This approach not only improves recovery outcomes but also strengthens long-term client relationships.

The experience also highlighted the urgent need for better financial literacy and governance among SMEs. Many of the challenges we observed were not solely macro-driven but also stemmed from weak financial planning, inadequate risk management, and over-reliance on short-term debt. Strengthening these areas is essential if SMEs are to withstand future economic shocks.

Ultimately, this period of policy risk and economic rebalancing has underscored a simple truth: SMEs are resilient, but they need the right support ecosystem, including stable policies, access to appropriately priced finance, and capacity-building initiatives. For institutions like Skystone Finance, this reaffirms our role not just as a provider of capital, but as a long-term partner committed to helping businesses navigate uncertainty and build sustainable growth.

JA: Skystone Finance works with many young people. This does not surprise me. Indeed, I have seen you mentor countless younger bankers during your career in banking. However, what are your views on the dynamics in which young people are portrayed as lacking experience yet recognised for their innovation capacity?

OO: This is a dynamic I have observed throughout my career, and I believe it reflects a broader transition taking place within the financial services industry and the economy at large. On one hand, young people are often perceived as lacking experience; on the other, they are increasingly recognised for their creativity, adaptability, and capacity for innovation. Rather than viewing this as a contradiction, I see it as an opportunity for deliberate talent development.

Experience matters, particularly in finance, where judgment, risk awareness, and institutional memory are critical. These are qualities that tend to be built over time. However, the operating environment today is evolving rapidly, driven by technology, changing customer expectations, and new business models. In this context, young professionals bring fresh perspectives, digital fluency, and a willingness to challenge traditional assumptions, all of which are essential for relevance and growth.

At Skystone Finance, we believe the solution lies in structured mentorship and intentional knowledge transfer. Young people do not lack potential; what they often lack is exposure. When they are placed in environments where learning is encouraged, mistakes are treated as part of growth, and senior professionals are accessible, they develop competence remarkably quickly. I have personally found that mentoring younger colleagues is mutually beneficial. It keeps leadership grounded while fostering a culture of curiosity and continuous improvement.



JA: Skystone Finance has not just weathered the macroeconomic crises we have lived through in recent years. It is stable and perhaps one of the fastest-growing nonbank financial institutions in the country. What are the drivers of the stability and growth?

OO: Our stability and growth are the result of deliberate choices rather than coincidence. From inception, Skystone Finance has been built on a foundation of prudent risk management, disciplined capital allocation, and a clear understanding of the segment we serve. We have resisted the temptation to pursue aggressive, unsustainable growth, particularly during periods of macroeconomic uncertainty.

A key driver has been our conservative risk culture. In recent years, as economic conditions became more volatile, we prioritised asset quality over volume, strengthened our credit assessment processes, and remained proactive in managing early warning signals within our loan book. This approach helped us absorb shocks, manage impairments responsibly, and protect our balance sheet.

Another important factor is strategic agility. We continuously adjust our business model in response to changing market conditions. For example, during periods of high interest rates, we optimised our investment strategy by taking advantage of attractive yields in fixed-income securities, while remaining selective in lending. This balance between lending and treasury activities supported earnings stability and liquidity.

Our growth has also been driven by a deep understanding of our customers, particularly SMEs and emerging corporates. We do not offer one-size-fits-all solutions; instead, we tailor financing structures to the realities of our clients’ cash flows and operating environments. This relationship-driven approach has strengthened customer loyalty and positioned us as a trusted partner rather than just a financier.

Finally, people and governance matter. We have invested heavily in talent, systems, and governance frameworks that support scalability and transparency. Strong leadership, clear accountability, and an ethical culture have enabled us to grow sustainably while maintaining the confidence of investors, regulators, and customers.

JA: I have also noted Skystone Finance’s commitment to delivering sustainable impact. Beyond the obvious importance of this approach for business continuity, would you like to highlight the impacts that Skystone Finance aims to deliver across the economic, social and environmental spectrum?

OO: At Skystone Finance, sustainability is not treated as a standalone initiative; it is embedded in how we do business. Our view is that long-term financial success is inseparable from the health of the economy, society, and environment in which we operate.

Economically, our primary impact lies in supporting productive enterprises, especially SMEs that create jobs, deepen value chains, and drive inclusive growth. By providing access to appropriately structured finance, we help businesses expand, stabilise operations, and contribute meaningfully to economic development. We are particularly focused on sectors that enhance local production, reduce import dependence, and strengthen the economy's resilience.

Socially, we are committed to financial inclusion, capacity building, and youth development. Beyond providing capital, we engage with our clients through advisory support and financial literacy initiatives, helping them build stronger governance and financial management practices. Internally, we place strong emphasis on talent development, diversity, and mentorship, creating pathways for young professionals to grow and lead.

From an environmental perspective, we are increasingly mindful of the impact of our financing decisions. While we are not an environmental organisation, we actively encourage responsible business practices among our clients and are gradually integrating environmental risk considerations into our credit evaluation process. We also seek opportunities to support businesses that adopt cleaner, more efficient operating models.

Ultimately, our goal is to build an institution that delivers commercial success alongside measurable positive impact. We believe that finance, when deployed responsibly, can be a powerful tool for economic transformation and social progress. That belief continues to guide our strategy and decision-making at Skystone Finance.

JA: What’s new or coming up at Skystone Finance?

OO: Having run the business for 8 years, we have taken a very strategic and disciplined approach to growth, ensuring that every phase of our expansion aligns with our long-term vision for Skystone Finance. Over this period, we have strengthened our operational foundation, deepened our market understanding, and positioned the company for the next level of impact within the financial services industry.

As part of this deliberate growth strategy, we have moved to acquire additional licenses within the financing space. These licenses will enable us to broaden our scope and provide more targeted, sector-specific financial solutions. Importantly, this expansion goes beyond traditional lending activities. We are positioning ourselves to play a more active role not only in the debt market but also in the broader debt capital market, enabling us to structure more innovative and flexible financing instruments for our clients.

In the coming month, we will formally unveil and launch these new initiatives. We see this as a major milestone for Skystone Finance, one that reflects our commitment to innovation, regulatory compliance, and delivering sustainable value to businesses, investors, and the wider economy.

JA: What is your outlook on the Nigerian economy and the financial services sector?

OO: I remain cautiously optimistic about the Nigerian economy and the financial services sector. We expect the reform gains to be consolidated. Inflation is expected to continue its downward trend, especially in the first half of the year, before election spending kicks in. The Naira is also expected to remain stable as the commencement of operation at the Dangote Refinery reduces PMS import. GDP growth is expected to expand further as inflation falls and the exchange rate remains stable. However, there is a need to address rising insecurity in the North. Investment in infrastructure is also critical, alongside policies that enhance productivity and competitiveness. 

For the financial services sector, the outlook is opportunity-rich but nuanced. Institutions that embrace innovation, maintain disciplined risk management, and focus on operational efficiency are well-positioned to thrive. The sector is increasingly diversifying, adopting technology, and expanding access to credit, particularly for SMEs and emerging corporates. Those that fail to balance growth with prudence, however, may struggle in an environment that is both more transparent and competitive.

Specifically for the banking sector, the outlook is positive. A number of banks have successfully met the new minimum capital requirements, unlocking funds to scale infrastructure, expand operations, and support broader business growth. The critical factor will be the effective allocation of these funds. Investors will expect earnings to grow in line with the expanded capital base; if not, dilution from capital raises could trigger negative market reactions, regardless of balance-sheet strengthening. Banks that manage this well, balancing growth, profitability, and risk, stand to reinforce investor confidence and play a central role in economic expansion.

Looking ahead, it is important to factor in the 2026 election cycle, which will dominate the second half of the year. Historically, election periods bring heightened political activity and potential market volatility. Businesses and financial institutions will need to navigate this environment cautiously, while maintaining focus on long-term operational resilience and strategic priorities.