Experts Task MSMEs on Credit Information for Easier Regulation, Financing Options

Oluchi Chibuzor 

With subsidy removal biting harder on businesses across the country, financial experts have urged Micro, Small and Medium Enterprises (MSMEs) to seize the opportunity to improve their credit information infrastructure for easier regulation and financing options.

Speaking at Fourth Annual MSMEs and Start-up submit 2023 of the Economic Forum Series, held in Lagos, the MD/CEO, Bank of Industry, Mr. Olukayode Pitan, said there was a need for MSMEs to improve on data collection about their businesses.

According to Pitan, who was represented by the Divisional Head, SME-South 2, BOI, Obaro Osah, many MSMEs in Nigeria run informal business structures based on physical infrastructure and cash payment systems.

He said, “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.”

Speaking on the theme, “The Role of Alternative Financing and Digital Payment Adoption For MSMEs Sustainability and Competitiveness,” he acknowledged that there are a lot of benefits to be enjoyed by these businesses, and the economy at large if they can digitize core aspects of their operations.”

Giving his remarks, the CEO, The Economic Forum Series, Jude Ndu, said that, “We believe change is inevitable, but how can you make sense of change and drive innovation? EFS believes that central to change is being at the forefront of thought leadership, innovation and change.

“It is time for MSMEs to begin to look at embracing other alternative financing options suitable for them to continue running their business. Importantly they must begin to keep data about their business to aid regulations and financing options available to them.”

On his part, the CEO Momo PSB Limited, Mr. Eli Hini, said increasing competition in the Fintech space presents an opportunity for the MSMEs in the country.

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.