The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigerian businesses need more than traditional loans to grow, highlighting the importance of patient capital, experienced investors and institutional support in addressing barriers to expansion.
Oyedele made this disclosure on Saturday in Abuja at the fourth edition of the Nigeria Sovereign Investment Authority Prize for Innovation, where seven startups received awards worth $277,000, according to The PUNCH.
Represented by his Special Adviser on Finance and Investment, Marie Ukpere, the minister said access to credit alone was insufficient to tackle the structural challenges facing entrepreneurs.
“We also recognise that high-potential businesses often require more than conventional credit. They need patient capital, experienced investment partners, and networks that can help them enter new markets and achieve scale,” he said.
He noted that although small and medium-sized enterprises supported millions of livelihoods and created jobs across the country, many faced difficulties scaling up due to limited access to funding, inadequate technical expertise and insufficient institutional support.
“Too many promising businesses struggle to grow because they cannot access financing, skills, or institutional support they need to succeed,” Oyedele added.
He said achieving Nigeria’s $1tn economic ambition would depend largely on helping small businesses grow into medium-sized enterprises and eventually large companies capable of competing in international markets.
He identified the Development Bank of Nigeria and the National Credit Guarantee Company as institutions helping businesses access financing. He explained that the latter was established to reduce lending risks and encourage banks to provide credit to small and medium-sized enterprises and manufacturers.
Oyedele also highlighted the $618m Investment in Digital and Creative Enterprises programme, which supports young entrepreneurs through funding, skills development and business support services.
Earlier, the Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Authority, Aminu Umar-Sadiq, said the 12 finalists were selected from more than 6,000 applications after undergoing five stages of screening and business development.
