Opportunities for SMEs in Nigeria

Nigeria has finally emerged from a tough recession, but what lies ahead for small and medium enterprises (SMEs) in the country? David Ita, a strategic partnership and emerging business analyst at Diamond Bank, sat down with CNBC Africa to shed light on the current landscape and opportunities for SMEs in Nigeria. Ita highlighted that despite the challenges, there are exciting prospects for SMEs in various sectors of the economy. According to Ita, even before the pandemic hit, sectors like agriculture, mining, and solid minerals were already showing promise. In addition to these traditional sectors, there has been increased activity in industries such as manufacturing and services. Diamond Bank has identified key areas like education, agriculture, and healthcare as focus points for supporting SMEs. Ita pointed out that there are ongoing initiatives to bolster these sectors and ensure that SMEs receive the necessary support to thrive. While the recovery is ongoing, there are still challenges that SMEs face in Nigeria. Ita highlighted issues such as government policies, inflation, and access to foreign exchange as external challenges affecting SMEs. However, he emphasized that there are internal factors that SMEs can address to enhance their competitiveness, such as improving capacity, leveraging technology, and enhancing technical competencies. Ita noted that SMEs that focus on these internal factors are better positioned to navigate external challenges and succeed in the current economic climate. In terms of financial support, banks play a crucial role in providing funding and resources to SMEs. Ita acknowledged that access to funding is a key concern for SMEs, but he also emphasized the importance of preparing SMEs to make the most of financial opportunities. Diamond Bank has implemented capacity-building initiatives like seminars and business clinics to equip SMEs with the knowledge and skills needed to access funding effectively. Additionally, the government has launched the National MSME Clinic to provide advisory services and support to SMEs across the country. Looking ahead, Ita expressed optimism about the future outlook for the Nigerian economy and SMEs. He cited government interventions like tax waivers and incentives for local manufacturing as positive steps to stimulate economic growth. With ongoing support from banks and initiatives like the Development Bank, Ita believes that SMEs in Nigeria are well-positioned for growth and success. As the country continues its recovery journey, the collaboration between government, financial institutions, and SMEs will be crucial in driving sustainable economic development.