Business
SME Funding: Experts Join CREM, SMEDAN, Chart New Course
Considering the role of SMEs in economic development especially developing countries of Africa, experts, SMEDAN and stakeholders, came together in Lagos recently to chart a new course for SME funding in Nigeria during a business forum organised by Centre for Research in Enterprise and Action in Management, (CREM) on SME funding in Nigeria.
The lead discussant, Prof. Joseph Nnanna said that there is need for proper understanding of parties involved in SME funding in Nigeria so that desired results will be achieved at the end of the day. He said further that Nigerian case is different from what is obtained in abroad.
Another speaker, Dean, Noel Ihebuzor, (PhD) said, “SMEs play important role not only in sustaining the economy but in creating jobs, creating revenue space and opportunities for families to take care of themselves.
He said that by the very nature of the business, SMEs need funds and if the arrangement of these funds could be available to them, SMEs will go a long way.
According to Ihebuzor, there are certain things preventing funds getting to the people who need it and that informed this discussion to identify those obstacles. He cited unfavourable government policy, improper implementation, accessibility obstacles etc, saying further that the instrument and vehicles to get money for SMEs should be made available if the sector must develop and contribute its quota in nation building.
SME funding should not call for equity, collateral, but collateral, and he suggested that the banks should look into the segment of SMEs that need collateral and those that need not.
Continuing, Ihebuzor said that another obstacle against SME growth in Nigeria is multiple taxation which reduces the money SMEs get at the end of the day. If you have to pay tax in the local government, pay tax at the state level and Federal level, all of that is taking a plunge, so there is need for more clarity on taxation.
In addition to that, Director, Babcock Centre for Executive Development, Prof. Johnson Egwakhe in his view said that SMEs are drivers of economies and if we leave them behind, we are ruining that economy.
However, he said that the issue of enablment goes beyond providing the fund. He said that capacity building is most important to sustain their investment, because many of them with laudable ideas are still having the challenges of how to push forward.
He said: “I believe one with a great idea can source for fund outside the policy maker with zero interest to pay capital and grow business. I also believe that your family members can fund your ideas and pay back if you have to pay.”
Also I believe that if my idea is bigger than me and I have a market for it I can sell my personal property to fund it.”
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
King Onunwor