Firstbank SMEConnect: Experts advocate SMEs capacity building to grow economy

By Moses Nosike

Considering the role of SMEs in the growth and development of any economy, especially Nigeria, financial experts have requested for quick intervention on capacity building of SMEs in the country if Nigerian economy must grow as it is seen in other part of the world.

This they said during the quarterly edition of SMEConnect Webinar event organised by FirstBank to provide SMEs with the necessary knowledge, tools, and resources needed to thrive and compete favourably.

Dwelling on the themed: “Funding Your Growth: How SMEs Can Access Finance and Scale Faster,” the programme delivered actionable insights on how businesses can secure funding, leverage on digital solutions, and overcome operational hurdles. SMEs, entrepreneurs, during the session were advised to maintain proper book keeping which positions them to obtain loans in banks.

Speaking during the Webinar session, keynote speaker, Kemi Adeosun, former Minister of Finance, Convener of DashMe Foundation and Ni-Dacity said, “I’m passionate about the growing of SMEs, reason being that, for the economy of Nigeria to grow, we must develop our SMEs, and this what developed economies of the world have done.

She said, “This is very important because, “It has been discovered that 96% of businesses operating in our environment are SMEs, and 84% of jobs are created by them. So, if we do SMEs better, we have more jobs and better our economy”.

Adeosun, who advised SMEs on the importance of business ideas, modules and proof of business concept said, business operators should understand their terrain because business is evolving everyday”.

In addition, Oluwatoyin Edu, Executive Director, MSME, Bank of Industry (BOI), while responding on what BOI offers for the development of SMEs in Nigeria, said, “BOI serves Nigeria in the area of industrial development. We provide financing for working capital. We also focus on business strategy which targets gender, climate, youth, and several packages for SME’s. We are the privileged bank, and we partner F.G to provide necessary financial packages for business development in Nigeria”.

According to Edu, BOI gives loan at 7% to 9%, based on the impact of your business. “We finance any business we know that provide impact and value. We look at your business to determine whether you need loan from the bank. We don’t deny businesses loan when they have good name and integrity. BOI has enough to offer when it comes to business development in Nigeria, and that is why we are there”. 

Also, Afoluwake Dahunsi, Head, Credit Analysis & Processing, FirstBank, said, “The essence of this programme which FirstBank organises quarterly is to provide capacity building for entrepreneurs, SME’s alike, because the bank understands the role of SME’s in economic growth and development. I advise them to leverage on this opportunity to push their businesses to the next level”.

Responding to questions during the panel discussion why some SME’s face difficulties accessing loans in banks, Dahunsi said, “One of the challenges is that many of them don’t have proper book keeping. Some have bad loan history. Banks will always look at your business registration, your cash-flow before they can grant you loan. And this is why we always encourage and advise SME’s ensure proper book keeping.”

She said, “In FirstBank we support SMEs to grow because they create jobs and reduce unemployment in the society”.

In the same vein, Helen Willie, Head, SME Banking, Firstbank said, “FirstBank has designed many products that would suit SMEs operation in Nigeria to help them succeed. That is the essence of this programme to create awareness so that they tap into this business opportunities existing in the bank”.

Responding to question whether FirstBank provides credit on solar financing, Willie said, “We offer that to enable SMEs power their business, and other products so that they would succeed”.

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