Business

Experts Want More Credit Facility For MSMEs

Published

8 years ago

October 18, 2017

Financial experts and entrepreneurs at the just concluded 23rd Nigeria Economic Summit (NES#23) have called on the Federal Government to provide more credit facility for Medium, Small and Micro Enterprises (MSMEs) oprators.
The experts spoke in Abuja during the Plenary session on ‘Access to Capital’ at the summit with the theme; “Opportunities, Productivity and Employment; Actualising the Economic Recovery and Growth Plan.’’
They also spoke on the need for the government to deepen the capital markets in order to ease access to long term funding for on-lending to MSMEs and Small Medium Enterprises (SMEs) operators in various sectors of the economy.
In addition, they urged commercial banks to relax their conditions for granting SMEs loans to enhance productivity and development.
One of the Panellists, Mr Tony Opanachi, CEO/Managing Director of Development Bank of Nigeria (DBN), said the Bank was working toward addressing some of the challenges of SMEs, especially funding and risk related issues impeding the growth.
He said that the bank would provide long term credit for SMEs through financial banks/intermediaries, build capacity of entrepreneurs as well as share partial credit guarantee.
The expert said that the effort would ensure sustainable flow of credit to the SMEs segment of the market.
“If you want to run a sustainable business, you can’t run away from the micro environment that you have and DBN is set to run a sustainable business.
“We are trying to avoid mistakes of the past, where you come out with intervention funds they dry up, but there’s no sustainability. One of the key things DBN is doing differently is to run a sustainable business over time.
“If you look at that segment, the micro for example, how are they being served in terms of debt equity? Most of the micro finance institutions basically focus on micro and learn the act of lending to micro businesses.
“So the bank for example is coming to provide that capacity for them to ensure that they are able to lend to more,” he said.
Also speaking, Ade Ayeyemi, the Group Chief Executive Officer of Eco Bank emphasised the need to deepen the capital market.
Ayeyemi stressed the need for SMEs to have ideas of how to run a business with profit equation while government should bring down the 17 per cent inflation rate to the barest minimum to enable the commercial banks to intervene.
According to him, this is what is obtainable in neighbouring countries with lower inflation rates.
He said the government should also create local condition for wealth creation and provide enabling environment for businesses to thrive.
The chief executive officer noted that this would make Nigeria an attractive destination for the foreign money to come in and enable the country to compete with the rest of the world.
”So if we do formalisation of businesses, allocation of pension funds, getting the ministries to do the capacity support for SMEs then we are beginning to make way forward,’’
In his remarks, Kamoru Bakrin, the Chief Executive Officer of Helios Investment Partners said the firm raised 1.5 billion dollars in 2016.
Bakrin, however, noted the dearth of investable opportunities in Nigeria and Africa.
He advised stakeholders to invest time and resources in developing capability in the sector.
Also speaking, Nasir Yammama, the Founder Verdant Agritech Ltd, spoke on the need for data generation in order to boost access to capital, adding that a lot of farmers had joined the value chain.
He observed that most entrepreneurs get access to funding outside Nigeria while others generate funds personally.
“De-risking MSMES is key and the Nigeria Incentive Risk Sharing Agricultural Lending (NIRSAL) ýis already taking the lead in addressing the risk concerns of farmers who make up the bulk of the 37 million MSMES sub-sector.
“For me, capacity development is key for entrepreneurs to be able to make head way.ý Entrepreneurs must invest in developing capacity which would enable them attract private capital and affordable funding.’’
Yammama, a representative of Entrepreneurs also observed the difficulties being experienced by business owners in accessing capital.
He said that the country must develop conventional financing system to help the SMEs in getting capital.
The expert also advised young entrepreneurs to have a clear cut idea in their plans that would attract investors.
”In my experience plan, the first business I have ever written I got a lot of help. No one can do it alone. You have to reach out to the right people.
”I went to the British Library and found a whole business clinic, so there is need for capacity development.
”If the banks are tired of seeing entrepreneurs with weak business plans, then they should invest in building their capacity,’’ he said.

Business

Customs Seek Support To Curb Smuggling In Ogun

Published

1 day ago

February 13, 2026

The Tide

The Nigeria Customs Service(NCS), Ogun 1 Area Command, has solicited support in fighting smuggling and other economic crimes at the Nations border.

The Area Comptroller, Olukayode Afeni made the appeal in an interview with Newsmen in Idiroko, Ogun.

The comptroller stressed the need for the public to provide timely and reliable information to the Service, saying noting that fighting smuggling is a collective effort

“I urge the general public to join hands with NCS by providing timely and credible information that would help toward suppressing smuggling and other economic crimes.”

“Together, we can build a prosperous nation where compliance is the norm, and criminality has no place,” he said.

Afeni reiterated the command’s commitment to combat smuggling, and facilitating legitimate trade, as well as generate revenue for national development.

Chinedu Wosu

Business

IFAD: Nigeria Leads Global Push For Youth, Women Investment In Agriculture

Published

1 day ago

February 13, 2026

The Tide

The 49th Session of the International Fund for Agricultural Development (IFAD) Governing Council has concluded in Rome, with Nigeria taking a prominent leadership role in advancing global agricultural development priorities, particularly strategic investment in youth and women.

The biennial meeting, themed “From Farm to Market: Investing in Young Entrepreneurs,” underscored the growing recognition of young people as critical drivers of job creation, innovation, and inclusive economic growth across global food systems.

The session opened with the election of Nigeria’s Minister of Agriculture and Food Security, Senator Abubakar Kyari, as Chairperson of the IFAD Governing Council.

Having previously served as Vice Chair, his emergence as Chairperson reflects the strong confidence reposed in Nigeria by Member States, recognising the country’s constructive engagement and leadership in promoting global food security.

In his acceptance remarks, Senator Kyari expressed deep appreciation to Member States for the trust placed in him, pledging to serve with humility, diligence, and a strong commitment to improving the livelihoods of rural women and men across the world.

Addressing delegates during the session, the Chairperson emphasised that prioritising youth and women in agriculture is key to unlocking economic opportunities, accelerating innovation, and driving inclusive growth.

He noted that such investments would ultimately strengthen global food systems while helping to reduce hunger and poverty.

Senator Kyari also commended President Bola Ahmed Tinubu for placing food security at the centre of Nigeria’s national priorities.

He noted that Nigeria’s leadership role at IFAD aligns with the President’s directive to boost agricultural productivity, expand economic opportunities for youth and women, and build resilient food systems capable of withstanding climate and market shocks.

The Minister further praised the IFAD Nigeria Country Office, led by Country Director Ms Dede Ekoue, for translating global development commitments into measurable outcomes for rural communities.

He highlighted the office’s role in strengthening agricultural value chains, empowering youth and women, and improving resilience among smallholder farmers nationwide.

Business

Expert Tasks FG On Food Imports To Protect Farmers

Published

1 day ago

February 13, 2026

The Tide

The Federal Government has been urged to balance consumer protection with farmers’ sustainability by ensuring timely food imports, input subsidies expansion and price stabilisation mechanisms to secure investments across the agricultural value chain.

An agriculture expert, Dr Fatai Afolabi, gave the advice at a forum organised by the Plantation Owners’ Forum of Nigeria (POFON), in collaboration with the Oil Palm and Other Oil Seeds Value Chain, themed ‘Current Government Food Strategy, the Concomitant Effects and Implications for Food Security in Nigeria’, and held in Lagos, Wednesday.

Afolabi cautioned that the recent food import policies, while easing consumer prices, could undermine local farmers and long-term food security if not carefully managed.

He noted that Nigeria’s food system was navigating an exceptionally difficult period, marked by inflationary pressures, climate variability, insecurity in major food-producing regions, and rising energy and logistics costs.

He said the Federal Government’s decision to temporarily relax restrictions on selected food imports was understandable, noting that the market had responded swiftly with a reduction in prices of major staples.

However, the convener observed that while the policy had brought much-needed relief to consumers, it posed significant challenges for local farmers and agriculture value chain investors.

“While output prices have fallen, the cost of producing food in Nigeria remains stubbornly high.

“Farmers continue to contend with expensive fertilisers, rising transport costs, costly improved seeds and agrochemicals, limited access to affordable credit, poor electricity supply, weak road infrastructure, and inadequate storage and processing facilities, which result in significant post-harvest losses.

“This situation, where farmers sell produce at declining prices while production costs remain elevated, has created widespread distress across agricultural ecosystems,” he said.

Afolabi said the effects were being felt across all segments of agriculture, with rice farmers among the hardest hit.

He said reports from producing states indicated that about 3,500 rice farmers were considering exiting rice cultivation after incurring estimated losses of over N93 billion.

He added that cassava farmers were selling produce at prices that barely covered harvesting costs, leaving them unable to recover their investments.

According to him, vegetable and edible oil producers are also under pressure as imported vegetable oil brands reduce demand for locally processed alternatives.

He added that cocoa farmers continue to battle price volatility in international markets amid rising domestic labour and maintenance costs.

Afolabi noted that tree crops such as oil palm and cocoa, which require long gestation periods, were particularly vulnerable to sudden market disruptions that undermine investor confidence and discourage new investment.

He said the effects extended downstream to agro-processing and value addition, with soybean farmers supplying vegetable oil processors experiencing reduced demand and lower prices.

He said the development threatened not only farm incomes but also rural employment and agro-industrial growth, raising concerns about national food security.

According to him, sustained losses could force farmers out of production, increasing Nigeria’s dependence on food imports and exposing the country to global supply shocks, foreign exchange pressures and long-term vulnerabilities.

Afolabi cited India and the Netherlands as countries offering useful lessons in balancing consumer protection with farmer sustainability.

He said India deploys food imports strategically during shortages, while complementing them with strong domestic support systems.

He added that the Netherlands, despite being one of the world’s leading agricultural exporters, supports farmers through input subsidies, tax incentives, affordable energy, strong cooperatives, and close integration with research and extension services.

He said agricultural students in both countries also benefit from subsidised tuition, transportation and meals, as well as grants and start-up support for farm enterprises.

“This approach ensures generational continuity and innovation in the agricultural sector,” he said.

Afolabi said Nigeria’s current food import policy could play a stabilising role if complemented by deliberate measures to protect local producers.

He recommended carefully timed imports to avoid peak harvest periods, strengthened price stabilisation mechanisms, aggressive subsidies for critical farm inputs, and support for agro-processors to remain competitive.

He also called for clear communication of policy intentions to reassure farmers that import measures were strategic and temporary.

“Food imports should function as a strategic shock absorber rather than a permanent market feature.

“Government should develop and publish a national crop production and harvest calendar for major staples and align import decisions with documented supply gaps.

“Affordable food and profitable farming are not mutually exclusive goals. With thoughtful coordination and sustained support for farmers, Nigeria can achieve both,” he said.