The Micro, Small and Medium Enterprises Development Agency (SMEDAN) has lamented the $158.1 billion financing gap in MSMEs, claiming that access to finance remains one of the biggest obstacles to the sector’s growth in Nigeria.
The Director-General of SMEDAN, Olawale Fasanya, stated during the weekend signing of a memorandum of understanding (MOU) between the Enterprise and Fidelity Bank Plc in Lagos that the aspiration for inclusive economic growth would remain illusive if the ease of access to finance by this key sector is not given priority.
Fasanya claimed that despite the sector’s outsourcing market and expanded untapped potential for the engagement of productive SMEs, banking institutions have been less interested in funding to it.
He said: “MSMEs in Nigeria are suffering and some of the factors impacting their growth are beyond us. Many banks are unwilling to pay them any attention. In terms of MSMEs’ growth, Fidelity Bank has been at the forefront.
Fasanya urged business owners to take advantage of market opportunities by developing their Information and Communication Technology (ICT) skills. She also noted that having access to the right regulatory framework and ICT infrastructure will encourage fair competition between big corporations and small businesses.
Scaling is crucial because nearly all businesses in Nigeria operate at the micro level, according to him. We can’t stay there for much longer. We must provide them with the most assistance possible so they can expand.
Nneka Onyeali-Ikpe, the bank’s chief executive officer, said it is more important than ever to assist financing for MSMEs given the need to accelerate Nigeria’s long-term growth trajectory.
She claims that the bank’s lending programs for MSMEs have been specifically designed to further relieve the strain caused by the MSMEs’ limited access to financing in Nigeria.
