Small and Medium Enterprises Development Agency (SMEDAN), has said that micro (less than SMEs) businesses in Nigeria make up about 99% of all the businesses operating in Nigeria today.
Speaking during the signing of a memorandum of understanding (MOU) between the SMEDAN and Fidelity Bank Plc held in Lagos, at the weekend, the Director-General of SMEDAN, Olawale Fasanya, also noted that access to capital is still one of the most significant barriers to the growth of small businesses in Nigeria.
Fasanya also said that because of these situations Nigeria should focus on measures to drive scaling up those businesses.
He stated: “In Nigeria, about 99 percent of the business are at the micro level so it means that scaling is very important. We cannot continue to remain at that level. We need to give them the maximum support needed to scale up.”
He added: “MSMEs in Nigeria are suffering and some of the factors impacting their growth are beyond us. Many banks do not want to give them attention. Fidelity Bank has been at the forefront of MSMEs growth.”
Fasanya said the MSME sector has suffered increased lending apathy from financial institutions despite its outsourced market with increased untapped potential for the engagement of productive SMEs.
Chief Executive Officer of Fidelity Bank, Mrs. Nneka Onyeali- Ikpe, said support for MSMEs’ financing is more critical now than ever given the need to boost Nigeria’s long-term growth trajectory.
According to her, the bank’s loan products for MSMEs have been tailored to help further ease the poor access-to-finance burden confronting MSMEs in Nigeria.