First Bank of Nigeria Limited (FirstBank) has highlighted poor funding as one of the biggest challenges facing Micro, Small, and Medium Enterprises (MSMEs) in the country.

Mr. Abiodun Famuyiwa, Head of SMEs Banking at FirstBank, explained that the bank’s decision to lend over N200 billion to MSMEs in 2024 was aimed at bridging the funding gap and supporting growth in the sector.

Speaking at the SMEDAN 2025 National MSMEs Conference in Lagos, themed “Grow Nigeria: Building a Future of Innovation, Resilience, and Prosperity”, Famuyiwa said:

“One of the major problems MSMEs face is funding. We can’t shy away from it because they need money to run their operations. FirstBank has stepped in to fill this gap.”

He added that N100 billion was disbursed to businesses across diverse markets, N70 billion went to petty traders, and the rest to other sectors—all totaling over N200 billion in one year. Notably, most of these loans were extended without collateral, with assessments based on each business’s capacity to manage the funds responsibly.

Famuyiwa emphasized that FirstBank also monitors how loans are used and tailors disbursements to avoid overburdening SMEs. Beyond financing, the bank supports businesses with webinars, seminars, and mentorship programs to help them scale.

The bank’s SME Connect platform provides opportunities for SMEs to exchange ideas, meet mentors, and learn best practices for growth. Additional support includes SME liability accounts and purchase order financing, designed to streamline business operations without extra charges.

The conference also facilitated discussions on policy dialogue for the review of the National MSME Policy, which expired this year, aiming to guide a new five-year framework. The GROW Nigerian Fair, part of the event, showcased promising SMEs in sectors such as food, fashion, manufacturing, technology, and entertainment.