Dr. Nneka Onyeali-Ikpe, the Managing Director and CEO of Fidelity Bank, recently called on the Nigerian government to establish a dedicated Micro, Small, and Medium Enterprises (MSME) Bank to provide affordable financing for small businesses. She made these remarks during her keynote address at the Development Bank of Nigeria (DBN) Lecture Series 2024 in Abuja.
During her speech on “Empowering Nigerian MSMEs in a Challenging Global Landscape,” Dr. Onyeali-Ikpe emphasized the need for institutions tailored to support the financial needs of MSMEs. She also highlighted the issue of double taxation faced by small business owners, which often leads to closures. She urged the government to establish an MSME Bank to ensure small businesses have access to funds at reasonable rates.
Dr. Onyeali-Ikpe also suggested the expansion of developmental financial institutions such as the Bank of Industry (BOI) and the Bank of Agriculture. She proposed the creation of sector-specific banks for industries like mining and exports. Additionally, she called for tax breaks and financial relief for startups to support the growth of MSMEs and boost Nigeria’s GDP.
Dr. Tony Okpanachi, the Managing Director of DBN, echoed these sentiments, acknowledging the challenges MSMEs face in the current economic climate. He discussed the rising production costs, inflation, and currency instability that hinder small business growth. Despite these challenges, he highlighted the role of DBN in supporting MSMEs and job creation in Nigeria.
Dr. Okpanachi praised the government’s efforts to create a conducive business environment but emphasized the need for further action. He stressed the importance of forums like the DBN Lecture Series to explore alternative solutions for the MSME sector.
In conclusion, Dr. Nneka Onyeali-Ikpe and Dr. Tony Okpanachi’s remarks underscore the urgent need for dedicated financial support for MSMEs in Nigeria. By establishing an MSME Bank, providing tax relief, and expanding developmental financial institutions, the government can effectively empower small businesses to drive economic growth and create more job opportunities. It is essential for all stakeholders, including the government, financial institutions, and business owners, to work together towards a more sustainable and inclusive financial ecosystem for MSMEs in Nigeria.