{
  "id": 14840337,
  "title": "Shenbanjo: Access to Capital Determines Business Success",
  "url": "https://urgent.news/2026/10/16/shenbanjo-access-to-capital-determines-business-success",
  "topic": "world",
  "section": "World",
  "published": "2026-10-16T01:25:00.000Z",
  "source": {
    "name": "This Day",
    "slug": "this-day",
    "url": "https://www.thisdaylive.com/2026/10/16/shenbanjo-access-to-capital-determines-business-success/"
  },
  "original_language": "en",
  "account": "The current state of access to credit in Nigeria is a significant challenge, especially for individuals and small and medium-sized businesses (SMEs). While credit is available, the issue lies in whether the right financing reaches the right people at the right time and on favorable terms. For many individuals and SMEs, barriers to accessing formal financing include documentation requirements, lengthy application processing times, high borrowing costs, and difficulties in demonstrating creditworthiness within traditional lending structures. For SMEs in particular, there is often a significant gap between the opportunity they have and the capital required to execute it.\n\nInflation, interest rates, exchange-rate pressures, and broader economic environment have made businesses and individuals more conscious of capital usage. Companies are scrutinizing cash flow, working capital, and financing costs, while individuals are paying more attention to affordability and repayment capacity. The current environment emphasizes that borrowing should make economic sense, helping individuals or businesses achieve productive outcomes like managing cash flow, acquiring assets, or capitalizing on genuine business opportunities. Lenders must also be more disciplined, considering customers' repayment ability and the underlying economics of the transaction.\n\nAccess to affordable and responsible credit is critical for the survival and growth of Nigerian SMEs. It can determine whether a business can seize opportunities or not. For instance, a company with a successful contract may struggle without access to working capital to fulfill it. The consequences of SMEs failing to obtain financing extend beyond the individual business, potentially hindering growth, employment, and economic participation.\n\nTo make the credit process more accessible, transparent, and customer-friendly in Nigeria's lending industry, several changes are necessary. Firstly, the entire customer journey needs improvement, making it easier for customers to understand the application process, required information, decision-making, and obligations. Lenders must also strengthen their risk assessment methods. While technology and better data can expedite the decision-making process and potentially improve the quality of decisions, they should complement, not replace, judgment. Lenders should maintain strong underwriting and portfolio monitoring to protect their balance sheets. Additionally, the lending industry should become more customer-centric, ensuring that financial institutions are accessible, transparent, and disciplined in protecting the integrity of their balance sheets.",
  "summary": "Wole Shenbanjo, is an entrepreneur and financial services executive and the Group CEO of Shenbee Investments. He has interests spanning financial services, investment markets and travel management, and is the",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}