Financial institutions have canvassed for alternative financing and digital payment adoption that will enhance the growth of small and medium-enterprising
Stakeholders spoke at the 4th annual ‘MSME & start-up summit 2023’ with the theme, “The role of alternative financing and digital payment adoption for SMEs’ sustainability and competitiveness,’ in Lagos, which was organised by Vanguard Media Limited and other partners.
The Managing Director, Bank of Industry, Mr, Olukayode Pitan, while making a presentation titled ‘The role of alternative financing and digital payment adoption for enhancing MSMEs sustainability and competitiveness’, canvassed for SMEs’ support.
The BOI, he noted, provided financial assistance for the establishment of large, medium and small projects as well as the expansion, diversification and modernisation of existing enterprises; and rehabilitation of existing ones.
To build a more conducive, resilient, and inclusive ecosystem for digital SMEs’ finance, he said, policymakers and regulators should, “Establish a conducive regulatory environment that encourages innovation and entrepreneurship in the financial sector by simplifying the licensing process for new financial technology firms and providing clear guidelines on regulatory compliance.
“Improving the credit information infrastructure and bureau coverage to address information asymmetries and increase transparency in the markets. This will reduce the perceived risk by investors and financing costs which are typically higher for SMEs than for large firms.
“Incentivise the use of alternative financing methods by providing tax breaks or grants to MSMEs. This reduces the cost of borrowing and encourages more entrepreneurs to explore alternative financing options.”
He said between 2015 and June 2023, the bank provided funding of over N1.6tn to MSMEs in Nigeria through direct interventions and various intervention funds on behalf of the Federal Government and multilateral institutions.
Speaking at the event, the Chief Executive Officer, Momo PSB Limited, Mr Eli Hini, said in addition to its financial education efforts, Momo was providing solutions to suit the growth of the SMEs.
According to him, through its platform, it was supporting innovative ideas of the SMEs operations, and partnering with agency networks and other institutions to ensure their growth.
He said, “Education is key and people must understand how the solutions are designed and how they can use it. We are trying to bring the services to them through the agents association and also leveraging other service providers who are within those communities who can serve as a point of interaction for the average person.