Nigerian businesses need more than loans to grow — Oyedele

Nigerian businesses need more than loans to grow, according to Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele. Speaking at the fourth edition of the Nigeria Sovereign Investment Authority Prize for Innovation in Abuja, Oyedele emphasized the importance of patient capital, experienced investors, and institutional support to help businesses overcome persistent barriers to growth.

He noted that access to credit alone was insufficient for many high-potential startups, which often require additional resources such as skilled investors and networks to enter new markets and achieve scale. Oyedele highlighted that small and medium-sized enterprises (SMEs) are crucial to Nigeria's economy, providing jobs and sustaining millions of livelihoods, but many struggle to expand due to inadequate financing, technical capacity, and institutional backing.

To support these businesses, Oyedele mentioned several institutions, including the Development Bank of Nigeria and the National Credit Guarantee Company, which aim to improve access to financing for SMEs. He also highlighted the Nigerian Consumer Credit Corporation's efforts to strengthen household purchasing power and domestic demand.

Oyedele further discussed the NSIA's $618 million investment in the Digital and Creative Enterprises programme, which supports young entrepreneurs through financing, skills development, and business assistance. The NSIA is also developing an impact innovation fund in collaboration with the Japan International Cooperation Agency to support commercially viable businesses tackling economic and development challenges.

Oyedele reminded the finalists that the true measure of success would be the businesses they build in the future, not just the prize they received. The NSIA's Managing Director and CEO, Aminu Umar-Sadiq, revealed that 12 startups were selected from over 6,000 applications, with all finalists participating in a six-week learning programme at Lagos Business School.

He emphasized that the impact of startup investments should be assessed over approximately five years, citing previous winners like Money Africa and Sycamore.