SMEs seek policy reforms, loan access

Small and medium enterprises (SMEs) have called for urgent policy reforms and easier access to financing, citing persistent barriers that continue to limit business growth and sustainability.

The concerns were raised at the Herconomy Wealth Building Summit in Lagos, where business owners, policymakers and development stakeholders highlighted challenges ranging from limited access to credit and high interest rates to regulatory bottlenecks affecting small businesses.
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The Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, said the agency was reviewing the national MSME policy, noting that the previous framework, which covered 2021 to 2025, is due for an update.‎
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He said Nigeria has about 39.6 million nano, micro, small and medium enterprises, with about 72 per cent owned or led by women, whose feedback the ongoing review would incorporate.
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“We don’t want this to be a talk show where we just come and talk and go home. We want to effect changes in the MSME ecosystem,” he said.
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Entrepreneurs at the summit raised concerns over difficulties in accessing loans, particularly for startups, noting that many financial institutions require businesses to operate for years before qualifying for credit.

Participants called for smaller and more flexible loan options, arguing that even modest capital could support early-stage businesses if made accessible.
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Concerns over high interest rates were also highlighted, with stakeholders urging policymakers to consider single-digit lending rates to reduce financial pressure on small businesses.
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Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose-Medebem, who represented Gov. Babajide Sanwo-Olu, said the state is expanding access to finance through cooperative-based lending.
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She said the initiative would provide loans of up to N10 million at single-digit interest rates, alongside a three-month moratorium, in partnership with the Bank of Industry.
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Beyond financing, entrepreneurs also highlighted regulatory challenges, including difficulties in obtaining certifications such as NAFDAC approvals, which they said remain costly and time-consuming for small businesses.