The federal government says inadequate access to finance, skills and institutional support is preventing promising Nigerian businesses from expanding, with consequences for job creation and economic growth.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said addressing the constraints was essential to helping small businesses develop into larger companies capable of competing internationally.
“We recognise, however, that ambition and good ideas alone are not enough. Too many promising businesses struggle to grow because they cannot access financing, skills or institutional support they need to succeed,” Mr Oyedele said.
The minister spoke on Saturday at the fourth edition of the Nigeria Sovereign Investment Authority Prize for Innovation in Abuja.
Mr Oyedele, represented by his special adviser on investments, Marie Ukpere, said small and medium-sized enterprises sustained millions of livelihoods and supported economic activity across sectors, making their expansion important to Nigeria’s development ambitions.
“Our ambition to build a trillion-dollar economy will depend in no small measure on our ability to help small businesses become medium-sized enterprises, medium-sized enterprises become large companies, and Nigerian companies become competitive players across Africa and the world,” he said.
The minister said the growing number of young Nigerians entering the workforce also made it necessary to support businesses that could employ others.
He said government interventions included financing through the Development Bank of Nigeria and the National Credit Guarantee Company, designed to reduce lending risks and encourage financial institutions to extend credit to small businesses and manufacturers.
He also cited the Nigerian Consumer Credit Corporation, supporting purchasing power and domestic demand, and the $618 million Investment in Digital and Creative Enterprises programme, targeting financing, skills development and business support for young entrepreneurs.
However, Mr Oyedele said conventional lending alone would not meet the needs of businesses seeking to expand.
“We also recognise that high-potential businesses often require more than conventional credits. They need patient capital, experienced investment partners and networks that can help them enter new markets and achieve scale,” he said.
He said the NSIA was anchoring venture capital funds to attract institutional investment into Nigerian enterprises and developing an impact innovation fund with the Japan International Cooperation Agency.
He added that British International Investment had expressed interest in participating in the proposed fund.
NSIA outlines support, monitoring
Speaking at the event, NSIA Managing Director and Chief Executive Officer Aminu Umar-Sadiq said support for entrepreneurs formed part of the authority’s investment strategy alongside infrastructure financing.
He noted that this year’s competition focused on healthcare, manufacturing and food systems because of their potential to generate employment and support business expansion.
Mr Umar-Sadiq said the programme combined equity investment with training and opportunities for entrepreneurs to connect with investors and markets. He added that the 12 finalists would undertake a learning programme at Lagos Business School lasting about six weeks.
Asked how the authority monitored the impact of its investments, he said it worked with company management teams after providing funding.
“When the equity injection goes into these companies, we work very, very closely with the management teams to enhance their value proposition, enhance their governance,” he said.
On the performance of previous winners, he cited Money Africa and Sycamore as successes but said the outcomes of such investments needed to be assessed over several years.
“It’s difficult for you to show traction at the scale that we want in a year or two. You always have to look at these things over a five-year period,” he said.
He did not provide figures on revenue growth, jobs created or additional investment secured by previous winners during the interview.
Food manufacturer wins top prize
At the competition, Come Again Foods, which manufactures packaged snacks from locally sourced agricultural produce, emerged as the overall winner with a $100,000 top prize, according to the NSIA.
Protein Kapital, which uses insect farming and organic waste processing to produce protein and biofertilisers, came second with a $70,000 award.
Instant Rad Inc., an artificial intelligence-enabled platform connecting hospitals and diagnostic centres with radiologists, placed third with a $50,000 award.
The authority said the 12 finalists were selected from 6,000 applications. Other award recipients included Eight Medical, Uwana Energy, Sambal Enterprises, Ebees Green, Smartel Agri Tech and Tryctor.
Mr Oyedele told the finalists that their performance after the competition would matter more than the awards.
He stated, “The real measure of your success will not be the prize you receive today, it will be the businesses you go on to build afterwards.”