‘Digital Payments Critical to Growth of Nigeria’s SMEs’

Nume Ekeghe of eTranzact International Plc has urged the widespread use of digital payment options among micro, small and medium enterprises (MSMEs), emphasizing that technology access is vital for enhancing business efficiency, financial inclusion and growth. The firm further disclosed its growing collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to broaden digital reach and financial education among small businesses nationwide.

Mrs. Abimbola Reis, the Divisional Head of Merchant Services at eTranzact, elaborated on this during a recent SMEDAN/eTranzact Town Hall meeting in Lagos, titled "Financial Literacy and Inclusion for MSMEs Leveraging on Fintech Innovation." Reis emphasized that MSMEs form the economic backbone of Nigeria, constituting roughly 40 million enterprises and driving substantial economic growth and job creation.

She, however, highlighted persistent challenges such as limited finance access, cumbersome payment systems, weak financial reporting, cash flow issues, and inadequate digital platform usage. Trust issues also deter businesses from obtaining finance, while excessive cash reliance heightens theft risks and complicates payment reconciliation.

Prof. Yinka Fisher, representing SMEDAN's Director-General Prof. Yinka Fisher, stated that the town hall aimed to brainstorm actionable strategies to bolster MSME growth. The partnership between eTranzact and SMEDAN, according to Fisher, is about propelling MSMEs forward and ensuring their continued expansion. Dr. Praise Adedigba, a representative of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), argued that businesses can no longer solely rely on hard work to stay competitive.