Governments, banks and other stakeholders are reworking strategies to enhance the small and medium enterprises (SMEs) access to finance and managerial capabilities. Deputy Group Business Editor, Taofik Salako, examines renewed efforts on holistic support for SMEs
Small and medium enterprises (SMEs) are globally acknowledged as catalysts for inclusive economic growth and development. They are crucial levers for mainstreaming economic development programmes, especially in developing economies. In Nigeria, SMEs are the largest employers, accounting for more than three-quarter of jobs. SMEs contribute half of the country’s Gross Domestic Products (GDP) and are the backbones of the nation’s real sector.
A report by PricewaterhouseCoopers (PwC) estimated that wholesale and retail trade and manufacturing sectors dominated the SMEs space in Nigeria, constituting 25.3 per cent and 22.5 per cent respectively. This underscored the importance of SMEs as the linchpin for national industrialisation. SMEs are typically labour-intensive and as such serve as the most practical channels to create more jobs, widen prosperity and reduce insecurity, three key challenges confronting Nigeria.
Several reports have highlighted that the two main challenges facing SMEs in Nigeria are access to finance and managerial capability. A collaborative survey by National Bureau of Statistics (NBS) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) identified six key constraints confronting SMEs sector. These include access to finance, weak infrastructure, policy inconsistency, lack of work place, multiple taxation and obsolete technology.
Renewed public, private efforts
Governments and private stakeholders have shown renewed efforts in holistic approach to SMEs development. From general ease of doing business, exemptions, tax incentives, national procurement fiscal policy to trainings, machineries, tool kits, mentoring, hubs and mass enlightenment campaigns; to direct finance access, credit guarantee, grants and special funding interventions in the form of single-digit soft loans and uncollaterised funding, SMEs are at the frontier of expansive framework to drive inclusive development.
With a N100 billion initial capital, National Credit Guarantee Company (NCGC) recently rolled out programmes to widen credit access to micro, small and medium enterprises (MSMEs). NCGC, established under the multi-faceted financing and consumer credit policy framework of President Bola Tinubu’s administration, aims at providing much-needed safety net for easy access to finance for MSMEs, local manufacturers and credit consumers.
NCGC is one of the ways the government is stimulating private finance to catalyse national economic growth. NCGC mainly plays the crucial role of a guarantor of loans, thereby reducing the risks for lenders and encouraging increased credit availability. Such de-risking reduces exposure and increases number of participating financial institutions (PFIs), lowers default rates, promotes financial inclusion and ultimately drives economic growth.
Managing Director, National Credit Guarantee Company (NCGC), Bonaventure Okhaino, underscored the importance of public, private partnerships in its mission to opening up access to credit.
“Our success hinges on inclusive partnerships and collaboration with all stakeholders in the financial ecosystem. We firmly believe that by working together, we can build a more inclusive, resilient and dynamic credit market in Nigeria. We will partner with PFIs, leverage data and technology, engage industry groups, build capacity, raise public awareness and advocate for enabling credit policies,” Okhaino said.
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He succinctly captured the intersection between NCGC and the Nigerian Consumer Credit Corporation (CREDICORP), another agency established by the current government.
CREDICORP, which has enabled more than 90,000 beneficiaries in structured consumer credit since April 2024, is implementing a multi-pronged strategy to support consumer purchase, a major lifeline for SMEs. From its initial takeoff capital of N100 billion, CREDICORP, through public-private partnerships, plans to mobilise some N176 trillion to close the country’s consumer credit shortfall, currently estimated at N141.3 trillion.
Under the strategy, CREDICORP targets consumer credits for 50 per cent of all working Nigerians by 2030, with consumer credits expected to reach 50 per cent of the Gross Domestic Product (GDP). It is also managing Federal Government’s special interventions for youth development, such as the YouthCred. The YouthCred programme is a loan-providing national credit campaign to change how young Nigerians think about money, borrowing, trust, and financial responsibility.
The scheme started with youths under the National Youth Service Corp (NYSC) but plans to expand to all employed young Nigerians between the ages of 18 and 39, as well as youth-led businesses across the country. The broader rollout is expected to deepen access to both personal and business credit, especially among underserved populations.
Key features of the YouthCred programme include gamified, fun-filled financial education before access to loans, no collateral or guarantor required to access loans; full digital onboarding using Bank Verification Number (BVN) and National Identification Number (NIN) and fast approval and disbursement.
YouthCred provides access to structured, low-interest credit for needs such as relocation, digital devices, mobility, or small business support. It was another government’s effort to stimulate the consumer market and MSMEs. By equipping young Nigerians with the tools to responsibly access and manage credit, the initiative aims to support job creation, entrepreneurship, mobility, and digital inclusion.
Chief Executive Officer, Nigeria Consumer Credit Corporation (CREDICORP), Mr. Uzoma Nwagba, said the agency is also deploying wholesale lending facilities and offering credit guarantees to financial institutions.
According to him, the wholesale lending facilities are meant to lower the risk and cost of lending, making it easier for banks and credit providers to serve a broader spectrum of the Nigerian workforce.
He said it was worrisome that only three per cent of Nigerian workers were able to access consumer credit in the past year, far too low for a country aiming to lift living standards and create a more dynamic economy.
He noted that while the Nigerian financial industry has the ability to meet the consumer credit requirements of the nation, institutional distrust and other structural problems continue to constrain access to funding.
To respond to this challenge, Nwagba said CREDICORP is implementing a comprehensive strategy aimed at redesigning the way credit is perceived, distributed, and utilised across Nigeria.
According to him, one of the key pillars of CREDICORP’s approach is the development of Nigeria’s credit infrastructure, which ensures that every economically active Nigerian has a comprehensive and dependable credit score.
The ongoing recapitalisation and strengthening of other development finance institutions (DFIs) such as Bank of Industry (BOI), Development Bank of Nigeria (DBN), Nigerian Export-Import Bank (NEXIM) and Bank of Agriculture (BOA) also rest on the two pillars of government’s direct support and private sector collaboration.
In 2024, BOI mobilised Euro 1.879 billion from the international financial markets, the highest amount ever raised by any Nigerian or African development financial institution (DFI). The new funding significantly expanded the bank’s balance sheet, increasing it by N3.3 trillion to some N7.1 trillion, up from N3.9 trillion reported in 2023. BOI’s capital raising also rested on the renewed focus on public-private collaboration, drawing supports from diverse array of international institutions across various countries, including 10 new international investors, particularly from the Middle East and Asia.
BOI is disbursing agency for the N75 billion Presidential Intervention Fund aimed at empowering MSMEs. Also, the Presidential Loan Clinic for MSMEs, being coordinated with the Office of Special Adviser to the President on MSMEs and Job Creation was designed to not only empower MSMEs through amenable funding, but also relevant managerial capability.
Managing Director, Bank of Industry ( BOI), Dr Olusupo Olusi, said access to finance and other supports are important for sustainable and inclusive growth.
He said: “We want to support MSMEs in a sustainable manner. We are not just providing funds, we are building capacity, monitoring impact, and ensuring that these loans translate to job creation and economic value”.
Special Adviser to the President on MSMEs and Job Creation, Mr. Temitola Adekunle-Johnson, said government was integrating funding with managerial training to ensure that MSMEs not only get relevant funding accessible but also the support needed to put the funds to productive use.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has in recent period raised more than N11 billion funding support for small businesses across the nation. It is also leveraging new partnerships.
SMEDAN and Fidelity Bank Plc are jointly implementing a partnership that provides amenable, low-interest loans to MSMEs. The memorandum of understanding (MoU) aimed at strengthening Nigeria’s MSMEs capacity within the African ecosystem through financial support, capacity building and access to market.
Director General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Charles Odii explained that the significant component of the SMEDAN-Fidelity Bank partnership focuses on nurturing growth of small businesses, including micro multinational business enterprises and expanding operations within the broader African market.
“We are optimistic about the collaboration in driving economic growth, creating employment, and fostering national development. The agency has conducted a comprehensive nationwide survey designed to accurately ascertain the precise number and distribution of MSMEs operating in Nigeria and the existing survey puts the number of MSMEs at approximately 40 million businesses, with an overwhelming 90 per cent classified as nano enterprises,” Odii said.
Managing Director, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, said the partnership between Fidelity Bank and SMEDAN was not a mere signing of an agreement but a renewed commitment to empowering MSMEs, recognising their pivotal role in driving economic growth, creating employment, and fostering national development in the years to come.
She noted the bank’s long-standing commitment to the nation’s MSME sector, pointing out that for over two decades, Fidelity Bank has been at the forefront of pioneering innovative solutions to support small businesses.
She said: “Fidelity Bank and SMEDAN will work closely to design and implement strategies that will drive sustainable growth in the MSME sector and also provide MSME-friendly interest rate loans, to businesses referred by SMEDAN.
“Our aim is to provide small businesses with access to finance, business development support, and market links necessary to expand their production capacities and reach wider markets. The bank is committed to investing in financial literacy programmes, access to market initiatives, and reward high-performing MSMEs.
“We will organise joint forums, create awareness programmes, and ensure that entrepreneurs receive the mentorship, counseling, and business development services they need to succeed. We urge entrepreneurs to seize the opportunities presented by this partnership to build a thriving MSME ecosystem together”.
At a talent hunt organised in Lagos under the Fidelity Bank-SMEDAN partnership, three rising disc jockeys (DJs) won major cash prizes. The trio of Ojo Ogunsakin, DJ Bamz; Oluwasegun Ikoya, DJ Shegz and Oluwaferanmi Olamide, DJ Frizzy; won N1 million,N500,000 and N250,000 as overall winner, first and second runners-up respectively.
The two-day event was held at the Fidelity SME Hub in Gbagada, Lagos. The Fidelity SME Hub is a multipurpose facility featuring training halls, meeting rooms, networking spaces, podcast rooms as well as music, photography and content production studios.
A hub for SMEs
The hub underscored Fidelity Bank’s beyond finance, holistic support to the SMEs sector.
Onyeali-Ikpe explained that in its nearly four decades of supporting small businesses, the bank has recognised that SMEs require more than just financial assistance, thus the implementation of various non-financial initiatives tailored to support the sector.
Fidelity SME Hub provides entrepreneurs with networking and stakeholder engagement initiatives as well as access to industry experts and mentors for hands-on guidance and business advice. A key feature of the facility is the Creativerse, a well-equipped space for entrepreneurs in the creative industry. The hub also hosts dedicated courses in areas such as financial management and investment readiness, digital transformation and technology adoption, marketing, branding, and business growth strategies. A fully-fledged creative academy will also provide courses on music production, business of music, website design and development, mobile videography, disc jockey and photography among others.
“The Fidelity SME Hub is our latest non-financial solution for SME growth. The facility is designed to foster innovation, collaboration, and capacity-building -vital elements necessary for strengthening Nigeria’s SME ecosystem and driving economic growth.
“Beyond empowering small businesses, the Fidelity SME Hub will also serve to bolster our non-oil exports drive as we empower SMEs to increase their contribution to Nigeria’s non-oil Gross Domestic Product (GDP) thus supporting government’s economic diversification drive. Through our investment in Creativerse in particular, we anticipate that content creators will unlock new revenue streams in entertainment, digital media, and arts, an industry already contributing 2.3 per cent to GDP,” Onyeali-Ikpe said.
Increasingly putting the SME Hub to use, Fidelity Bank last month unveiled a transformative digital empowerment initiative aimed at equipping 100 growth-ready SMEs with cutting-edge business management systems- entirely free of charge.
The initiative, known as Fidelity SME Empowerment Programme (FSEP), further highlighted the strategic importance of SMEs to the nation’s economy and the bank’s unwavering support for their growth.
Onyeali-Ikpe explained that under the initiative, each selected SME would receive a comprehensive business package that includes a fully-installed ERPRev-enabled desktop POS system, ERPRev business software suite, a receipt printer and barcode scanner, and support for inventory data input.
She added that beneficiaries would undergo financial management and bookkeeping training, receive branding and onboarding support, and benefit from six months of post-installation technical assistance. Each business would also receive a free Fidelity POS terminal with instant settlement.
“At Fidelity Bank, we believe SMEs are not just the backbone of our economy—they are the architects of innovation, resilience, and inclusive growth. Through the Fidelity SME Empowerment Programme, we are providing 100 entrepreneurs with the tools, training, and support they need to thrive in today’s digital economy,” Onyeali-Ikpe said.
The three-day rollout programme also features intensive masterclasses, hands-on training sessions, and business networking opportunities designed to ignite innovation and expand market access.
One of the highlights of the launch was a presentation by Chief Executive, Manmark, Mrs. Adaonah Kene-Uyawune, Fidelity Bank’s strategic implementation partner. She described the initiative as a critical digital shift that addresses key pain points for SMEs.
“This is a game changer. We are replacing outdated manual bookkeeping with a unified system that simplifies core business operations like accounting, inventory, and HR management. These tools are not handouts—they are instruments for long-term sustainability and profitability,” Kene-Uyawune said.
Global partnerships for trades, investments
Next month, Fidelity Bank will be holding the 3rd edition of its flagship market access platform, the Fidelity International Trade and Creative Connect (FITCC) Expo from September 18 to 20, 2025, at the Omni Atlanta Hotel at Centennial Park, Georgia, USA.
In a strategic move to deepen diaspora and transatlantic business linkages, Fidelity Bank is partnering with Amplify Africa, the organizers of AFRICON, the leading African diaspora business and culture summit in the United States. This collaboration brings together two powerful platforms committed to bridging African enterprise with global opportunity.
The 3rd edition follows the success of previous editions in London and Houston, which collectively generated a consolidated deal pipeline exceeding $500 million. At FITCC Atlanta 2025, more than 100 Nigerian exporters are expected alongside United States (U.S.)’ buyers, investors, policy stakeholders and diaspora-led business networks.
The September 2025 expo will spotlight strategic sectors including agriculture, consumer-packaged goods, energy transition minerals, fashion, beauty, and the broader creative economy. Programming highlights include business exhibitions, B2B matchmaking, policy dialogues, diaspora investment panels, and curated workshops focused on expanding Nigeria’s access to global markets.
With current confirmations, FITCC 2025 is expected to attract more than 3,000 participants, including development finance institutions, chambers of commerce, trade facilitation agencies, and multinational corporations.
FITCC 2025 aligns with ongoing government-led efforts to deepen global partnerships to enhance cross-border trades and investments. From U.S. to United Kingdom to Japan and beyond, the government is expanding the frontiers of bilateral frameworks.
With U.S., the Tinubu-led government is deepening economic collaboration as part of a broader strategy to attract foreign direct investment (FDI), drive innovation, and stimulate sustainable economic growth.
Last week, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the United States Consul General to Nigeria, Mr. Rick Swart met in Abuja to continue dialogue on increasing mutual benefits in several areas of cooperation.
During the meeting, Nigeria expressed willingness to explore fresh investment opportunities, support private sector-led growth, and leverage innovation to meet national development goals in line with the Tinubu-government’s Renewed Hope Agenda.
Edun said the government remains committed to policies that would create a conducive environment for foreign investors.
According to him, the government is working to ensure that Nigeria is seen as a reliable destination for global investment, and the collaboration with the United States is essential to achieving this goal.
Swart expressed support for Nigerian reforms and reiterated U.S.’s readiness to deepen economic development efforts.
He said: “The United States and Nigeria have built a resilient and enduring partnership. We will continue to explore new opportunities for collaboration in trade, investment, and capacity building. Our goal is to support Nigeria in achieving broad-based economic growth and improving the lives of its citizens.”
With UK, the government is implementing a partnership that SMEs to strengthen quality infrastructures for international trades. The Standards Partnership Programme is in its third phase and will continue until March 2026. Now, the initiative focuses on four key sectors, including leather, tea, cashew, and coffee.
The Trade Market Access Lead at the UK Department for Business and Trade in Nigeria, Simeon Umukoro, explained that the four sectors were selected as pilot industries to identify existing challenges and address gaps in areas such as measurement standards, accreditation, and conformity assessment.
He highlighted that the programme would enable Nigerian SMEs to benefit from UK’s developing countries trading scheme, which grants duty-free access to the UK market for more than 3,500 Nigerian products.
“The initiative is intentionally inclusive, designed not just for large corporations but specifically structured to assist smaller businesses in meeting the technical and regulatory standards required for exporting to international markets,” Umukoro said.
The government in collaboration with Japan and other partners have also set up a N44 billion fund to support innovations and cutting-edge technologies in key sectors of the economy. The fund will provide both grants and equity investments to innovations in various sectors of the economy, especially agriculture, healthcare and education.
Chairman, International Chamber of Commerce Nigeria (ICCN) Banking Commission, Dr Omolara Akanji highlighted the importance of banks in building international pathways for Nigerian businesses.
She said: “International trade is not just a pathway for economic growth, but a bridge that connects us to the global marketplace. Banks play a vital role in this ecosystem; they are trade facilitators, providing the financial services that empower our exporters to compete and thrive on the world stage”.
With gross earnings of N315.4 billion and total deposits of N6.6 trillion in first quarter 2025, Fidelity Bank’s leadership in SMEs financing and supports is well recognised, at home and abroad. The bank had won 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine, Best Bank for SMEs in Nigeria by Euromoney Awards for Excellence and Export Financing Bank of the Year by BAFI Awards.
Fidelity Bank was recently recognised by Development Bank of Nigeria (DBN) for its exceptional contributions to innovative financial solutions for MSMEs. The bank was awarded 2025 DBN Innovation Award, in the deposit money bank (DMB) category. The award highlighted Fidelity Bank’s commitment to addressing unique challenges faced by MSMEs.
Speaking at the 2025 Service Ambassadors’ Awards ceremony in Lagos, themed ‘Enhancing Partnership for MSME Resilience and Growth’, Managing Director, Development Bank of Nigeria (DBN), Tony Okpanachi underscored the importance of financial institutions in transforming unbankable ideas into viable businesses through advisory services.
He said the award aimed at recognising partners who make significant impact, especially in converting unbankable ideas into bankable businesses, an area where Fidelity Bank has competitive advantages.
Onyeali-Ikpe said the latest award reaffirmed the bank’s dedication to empowering Nigerian entrepreneurs.
She said: “At Fidelity Bank, innovation is at the heart of our strategy to support MSMEs. This recognition underscores our commitment to developing scalable, inclusive, and technology-driven financial solutions that create positive outcomes for our nation’s entrepreneurs. We are honored to receive the DBN award and dedicate it to our loyal customers for their continued support”.
With increasing collaborative public, private efforts, Nigerian SMEs appear on a steady trajectory to scale for optimal domestic productivity and global competitiveness, especially as the African Continental Free Trade Agreement (AfCFTA) gains traction.
