Fidelity Bank Plc has disbursed over N100 billion loans to Small and Medium Enterprises (SMEs) in the first half of the year.
In order to provide low interest rate credits to SMEs in Nigeria, the bank has also used its lending framework to collaborate with a number of Development Finance Institutions (DFI), including the Development Bank of Nigeria (DBN), the Bank of Industry (BOI), and the African Development Bank (AfDB).
According to Ms. Esther Obiekwe, group head, SME Banking Business, Fidelity Bank Plc, who was addressing on the sidelines of the recent Lagos State Trade Fair noted that the bank was named best SME supportive institution by DBN, having disbursed over N50b under the DBN on-lending plan.
She claims that the bank is actively utilizing cutting-edge digital technologies to enhance customer experience in risk asset products in order to increase market share in the sector and further its penetration of the SME segment.
According to her, the bank is constructing SME advising hubs all throughout the nation where established and aspiring business owners (both our SME clients and non-customers) can visit and obtain free business management information and guidance.
Additionally, according to Obiekwe, the bank is developing a SME online portal that will house all of its business advising services for SMEs in Nigeria under one roof.
She lamented the difficulties that the SMEs sector in Nigeria faces, despite the fact that it may represent the most dynamic firms in emerging economies. These difficulties are preventing development and limiting their ability to expand.
Given the appeal of the industry, particularly the technology companies, the problem of inadequate capital for SMEs shouldn’t even be a problem. Up to 90% of jobs are produced by this industry, which produces 50% of the GDP.
She asserts that given the sector’s attractiveness, the problem of inadequate finance in SMEs shouldn’t even exist given its 50% contribution to GDP and 90% employment generation.
“Once the government gets power right, SMEs can save cost and other unnecessary wastage, improve efficiency, grow production capacity and overall output.
From our experience over the years, there are two broad categories of challenges SMEs face in Nigeria, and they are Funding Issues and Non-Funding Issues.
“Critical amongst the non-funding issues are the dearth of infrastructure such as roads, power, ICT etc. as well as government policies which are required to encourage the growth of SMEs in Nigeria.
“For the bank, its long-running support for the growth and development of small businesses in Nigeria stems from its recognition of their strong roles, as critical agents of economic development and transformation in Nigeria,” she said.
