Three Nigerian small and medium enterprises have secured funding and financial advisory services from the United Nations Development Programme and Onyx Investment, unlocking a potential $50 million in capital finance from public and private sectors. This development was announced at the closing of the UNDP Nigeria SDG Investment Forum in Abuja.
According to Mohammed Yadudu, Senior Assistant to the Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure, the Federal Government has introduced initiatives to provide funding for entrepreneurs and boost the economy over the past two years. However, despite having the right policies in place, there are still gaps in terms of framework and implementation. Yadudu noted that his agency is working to address these gaps by developing frameworks in partnership with key stakeholders, including the Nigerian Communications Commission and the Nigerian Electricity Regulatory Commission.
The CEO of Onyx, Aisha Yakubu Bako, highlighted the challenges faced by SMEs in Nigeria, which contribute 48% to the country’s Gross Domestic Product but receive only 5% of commercial banks’ credit at high interest rates. To address this funding gap, Bako emphasized the need to build the capacity of SMEs and ensure they are investment-ready. Investors typically seek businesses that can guarantee returns on investment while creating a positive impact.
Etemore Glover, CEO of Impact Investor, stressed that the Nigerian government needs to do more to support SMEs, which are the backbone of the economy, providing over 80% of labor and employment and contributing 50% to the GDP. Glover suggested that the government should provide innovative support, both financial and non-financial, to businesses.
The UNDP-backed financing has been secured by Damilola Daramola, co-founder of Trashcoin, and Mastura Bello, Head of Operations for Seed Project Company. This financial boost is expected to unlock $50 million in capital finance, providing a significant opportunity for Nigerian SMEs to grow and develop. The development highlights the importance of supporting SMEs, which play a crucial role in driving economic growth and employment in Nigeria.
