These observations were made at the Nigeria SMEs Confab 2024, held in Lagos and organized by SUPERNEWS, under the theme “Bringing SMEs into the Financial Services Network via Fintech.”

In his keynote address, Dr Biodun Adedipe emphasized that Micro, Small, and Medium Enterprises (MSMEs) are essential to building sustainable and inclusive economies. He pointed out that beyond creating jobs, MSMEs are key drivers of innovation and economic dynamism.

Adedipe said, “As Nigeria continues to embrace digital transformation and foster innovation in the financial sector, the role of fintech in empowering SMEs will only grow in significance.

 “With a young and dynamic entrepreneurial ecosystem, the demand for fintech solutions tailored for SMEs is expected to soar, driving further innovation and competition in the market.”

He mentioned limited access to finance and poor financial management competence as two key challenges of SMEs.

“The first has been a major concern among various stakeholders of the sector and there have been diverse responses to it across diverse geographies,” he said.

Also speaking, Charles Odii, the Director General and CEO, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), stated that Fintech is one of the fastest-growing areas for venture capitalists that can benefit SMEs.

Represented by the Zonal Coordinator, South-West of SMEDAN, Olukayode Shode, the DG noted that integrating SMEs into the financial services network via fintech will enhance efficiency, accessibility, and security through innovative solutions.

The convergence of finance and technology is reshaping how banks operate and engage with customers. The growing importance of fintech lies in its ability to streamline processes and reduce operational costs.

“Fintech solutions, such as mobile banking apps and digital wallets, provide convenient access to financial services irrespective of location or credit history.

 “This inclusivity not only empowers individuals but also fuels economic growth by bringing previously marginalized populations into the formal financial system.”

However, the SMEDAN boss pointed out that while Fintech funding is on the rise, regulatory problems exist. He said, “While fintech firms create new opportunities and capabilities for consumers, especially SMEs, they are also creating new risks to be aware of. Data privacy and regulatory arbitrage are the main concerns.”

Earlier, Ngozi Onyeakusi, said the choice of the theme was borne out of the quest to improve the business climate for SMEs in Nigeria by leveraging on technology in terms of accessing financial services.

She said, “It’s unfortunate that SMEs that form the bedrock of every economy are plagued by a lot of challenges, especially inadequate access to finance.

 “Indeed, reports have shown that the challenge of SMEs in accessing funds could be traced to inadequate access to financial institutions and education, skills, experience of owners/managers, high interest rates, gender discrimination, among others.

 “It therefore becomes imperative to leverage on technology to ensure their sustainability, productivity and profitability.”

In collaboration with SME 100 Africa, the two-day training, which was held in Lagos, is part of AXA’s lined-up programmes to commemorate this year’s International Women’s Day.

In addition to the series of women empowerment Initiatives, AXA Mansard has been training female SMEs over the past few years as part of its plan to Increase financial and digital literacy amongst female-owned SMEs In Nigeria.

According to Olusesan Ogunyooye, the head of Marketing AXA Mansard, the training aims to empower female SME owners with skills to improve business output and position them for the increasing economic opportunities available in an increasingly digital marketplace.

Ogunyooye noted that the move is in line with AXA Mansard’s sustainability agenda, explaining that the company is convinced that support for women through its inclusive protection programmes is pivotal to its purpose of acting for human progress by protecting what matters and its mission of moving from being a payer to a partner.

He furthered that focusing on digital skills is important because the company realizes the importance of digital skills to the growth of the SME sector in Nigeria and wants to ensure that women are empowered enough to be a consequential part of that growth.

“It’s almost trite to say that SMEs are the engine for economic growth, especially in developing countries like Nigeria, where over 45 million adults are business owners. What needs to be continually discussed is how Nigeria is going to unlock that potential for economic development and how much of that potential will be unlocked by women and for women.”

”For us at AXA Mansard, we are aware that digital will play a major role in unlocking these current opportunities and Nigeria’s economic future. So, to ensure that women are equally represented in unlocking these future potentials, that’s why we have collaborated with SME 100 Africa to support them in developing the required skills”.

“Our choice of digital and financial literacy skills is deliberate. We understand the power of the duo. We understand that helping these SMEs with the skills to attract more customers will be a faster means to empower them. We see that they have amazing products and services, but they need to understand how to attract value for themselves by attracting the right customers, and you will agree with me that virtually all customer segments are online in one way or another today. So, if we can empower them with digital business skills, we would have helped them with the heavy lifting of trying to find and attract customers”. Ogunyooye explained.

AXA Mansard believes that for the world to truly experience progress, there must be an equitable distribution of creation and access to opportunities for men and women. This quest for balance informed the SHE for Shield initiative, a women-centred inclusive protection programme of AXA Mansard.

SHE for Shield is a group of initiatives designed for the Nigerian woman. The goal is to see them grow, add value, and help them mitigate risks every step.

According to the company, research has found that access to health care is one of the most important things to Nigerian women, regardless of their economic segment. They desire to be financially independent, secure, and respected in the community.

The NetPOS Mini launched into the Nigerian market earlier this year, is a device that doubles as both a SmartPhone and a POS terminal, and offers multiple payment channels for merchants, including Cards, Account Transfers, QR codes and USSD payments.

Asides having NFC built in, pre-installed business apps and a merchant dashboard, the device can also be used by the merchants to take orders by call, text or iMessages.

It comes pre-installed with STORM, the Super Merchant app, which provides inventory management, payment integration with social media, and sales tracker all in one.

Speaking on the new banking product, Mr. Ebenezer Onyeagwu, the group managing director/chief executive of Zenith Bank Plc, said that: “SMEs remain the growth engine of any economy and Nigeria is no exception, with 96% of local businesses classified as SMEs according to the International Finance Corporation (IFC). This provides a huge space to deliver value and offer compelling propositions and engagement for business growth and contribute to national development”.

According to him, “the launch of the ‘SME Grow My Business’ product by the bank, therefore, stems from the desire to provide a unique platform for catering for the unique needs of SMEs who represent a major segment of the Nigerian economy”.

Zenith Bank has continued to distinguish itself in the Nigerian financial services industry through superior service offerings, unique customer experience and sound financial indices.

The Bank remains a clear leader in the digital space with several firsts in the deployment of innovative products, solutions and an assortment of alternative channels that ensure convenience, speed and safety of transactions.