Nigeria’s MSMEs need inclusive financing, stronger partnerships to thrive - experts

Nigeria’s MSMEs Need Inclusive Financing and Stronger Partnerships to Thrive: Expert Insights

At the heart of Nigeria’s economic transformation lies the critical role of Micro, Small and Medium Enterprises (MSMEs), which experts have described as the backbone of the nation’s productivity and innovation.

During the Manufacturing Business Accelerator (MBA) Cohort 2 Graduation and Business Showers held in Lagos, stakeholders from the financial and entrepreneurial sectors convened to discuss the urgent need for inclusive financing and robust partnerships to empower MSMEs and unlock their full potential.

In her keynote address, Mrs. Esther Obiekwe, Group Head of Retail and SME Banking at NOVA Bank, emphasized that MSMEs account for over 90% of businesses in Nigeria, contribute 80% of employment, and nearly half of the country’s Gross Domestic Product. She painted a vivid picture of the diversity and dynamism of these enterprises, from roadside tailors and small-scale manufacturers to tech startups in Yaba and agro-processors in Kano, underscoring their indispensable role in driving innovation and job creation across sectors.

However, Obiekwe also highlighted the persistent challenges that hinder MSME growth, including limited access to finance, inadequate infrastructure, and regulatory bottlenecks. She called on the government and financial institutions to create a more enabling environment that fosters inclusive growth. NOVA Bank, she noted, is actively supporting MSMEs through digital platforms, simplified onboarding processes, and tailored advisory services designed to help entrepreneurs grow “smarter, not just bigger.” She stressed that inclusion is the bridge between potential and participation, pointing to women, youth, and informal-sector entrepreneurs as untapped reservoirs of economic energy. By integrating these groups into formal financial and business ecosystems, Nigeria can significantly expand its national productivity.

Mrs. Desola Jimmy-Eboma, convener of the MBA programme and founder of the Small Scale Enterprise Lab (SSE Lab), shared how the initiative helps entrepreneurs transition “from hustle to structure.” Through mentorship and practical frameworks, the programme equips MSMEs with the tools to build sustainable and scalable businesses. Her remarks reinforced the importance of structured support systems in nurturing entrepreneurial talent and reducing the high failure rate among small businesses.

Representing the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Bunmi Kola-Dawodu praised the MBA initiative and called for more programmes of its kind. He emphasized that such efforts are vital to boosting MSME growth and job creation, which are essential for Nigeria’s broader economic development.

The event’s theme, “Innovation, Inclusion, Impact: Redefining MSMEs in Nigeria’s Economy”, captured the essence of the discussions. It reflected a shared vision among stakeholders to move beyond rhetoric and implement actionable strategies that empower MSMEs.

The consensus was clear: inclusive financing and strategic partnerships are not optional, they are imperative for Nigeria’s economic resilience and future prosperity.