Nigerian SMEs get UNDP financial boost to unlock $50m capital

Three Nigerian small and medium enterprises have received both funding and financial advisory from the United Nations Development Programme and Onyx Investment to unlock a blend of $50 million in capital finance from the public and private sectors.

This was disclosed at the closing of the UNDP Nigeria SDG Investment Forum on Saturday in Abuja.

Speaking in an interview with journalists, Mohammed Yadudu, Senior Assistant to the Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure, NASENI, said the Federal Government in less than two years rolled out an initiative to provide funding for entrepreneurs and boost the country’s economy.

According to him, the government has the right policies but there are still gaps in terms of framework and implementation.

“So as of right now, we absolutely have fantastic policies that we’re working with. However, there’s a gap in terms of frameworks and other policies, and that’s what NASENI is actually working on.

“We did a diagnostic for the things that our mandate allows us to do. We did the diagnostic and saw areas of, I would say, shortfall when it comes to framework and policy alignment.

“So in those areas, we’re developing those frameworks in partnership with other key stakeholders, such as the Nigerian Communications Commission, which is the National Council on Climate Change, the Nigerian Electricity Regulatory Commission, and other key stakeholders.

“We’re currently developing some frameworks that are going to enable both ministries, departments, agencies, and the private sector as well to engage in certain value areas in the country,” he said.

On her part, the Chief Executive Officer of Onyx, Aisha Yakubu Bako, said despite SMEs contributing 48 per cent to Nigeria’s Gross Domestic Product, the sector received only 5 per cent of commercial banks’ credit with high interest rates.

“To address the funding gap that most SMEs in Nigeria are currently facing, we need to focus on building their capacity and ensuring they are investment-ready. Investors seek businesses that can guarantee returns on their investments while also creating a positive impact.”

Also, Etemore Glover, the CEO Impact Investor, said the Nigerian government at all levels needs to do more to support SMEs and businesses because they are the bedrock of the economy.

“The government can do more in terms of supporting organisations like this that are providing support to SMEs, because we know SMEs are the backbone of any economy, providing over 80 per cent of labour and employment and contributing 50 per cent to the GDP.

“Any government, you know, that is really forward-thinking will start thinking innovatively to provide support, both financial and non-financial, to businesses,” she stated.

DAILY POST reports that co-founder of Trashcoin, Damilola Daramola, and Mastura Bello, Head of Operations for Seed Project Company, secured the UNDP-backed financing.

Nigerian SMEs get UNDP financial boost to unlock $50m capital