Tag:

MSME

UBA supports female entrepreneurs with N5 Billion BOI MSME Fund

by Robert Ipogah August 18, 2025

written by Robert Ipogah

United Bank for Africa Plc, UBA is set to support female entrepreneur at micro, small and medium scale levels and operating in key sectors of the economy.

The N5bn loan facility secured from the Bank of Industry and disbursed through the Federal Government’s MSME Fund, is designed to stimulate the growth of sustainable and viable businesses, with a primary focus on Green Energy, Education, Healthcare, and Women-Owned Enterprises.

Commenting on the facility, UBA’s Group Managing Director/CEO, Oliver Alawuba, underscored the bank’s commitment to fostering economic growth by empowering MSMEs, which he described as the “lifewire of any developing economy.”

“At UBA, we recognise the pivotal role MSMEs play in driving economic development, and how they make up a sizable portion of what drives our economic growth,” Alawuba said. “By offering loans at a competitive 9% interest rate with a three-year tenor, we are removing the traditional barriers that hinder SME growth in Nigeria and Africa.”

“By offering loans at a competitive 9% interest rate with a three-year tenor, we are removing the traditional barriers that hinder SME growth in Nigeria and Africa. And by this, our message to business owners is simple: Don’t let this once-in-a-lifetime opportunity elude you.” Alawuba added.

The facility provides a maximum loan amount of N5m per beneficiary, with a three-month moratorium on principal repayments. This is to ensure that businesses have ample time to stabilise before they begin to service the loans.

For UBA’s Group Head of Retail and Digital Banking, Shamsideen Fashola, the initiative is in tandem with the bank’s financial inclusion and economic empowerment.

“We are structuring this facility to align with our broader mission of financial inclusion and economic empowerment. For us at UBA, we will be targeting Green Energy, Education, Healthcare, and Women-Owned Enterprises, which are critical to Nigeria’s sustainable development,” he noted.

Continuing, he said, “This facility is structured to ensure that businesses in these sectors can access affordable funding, expand their operations, and contribute meaningfully to the economy. We are excited to partner with BOI to make this a reality.”

Also speaking at the loan facility unveiling, Group Head, Marketing and Corporate Communications, Alero Ladipo, took time to highlight the competitive interest rate and government backing as well as urge business owners, especially women to take advantage of the initiative.

“What sets this program apart is its accessibility and affordability. We have worked closely with stakeholders to ensure the terms are business-friendly because we understand the challenges entrepreneurs face. I urge eligible businesses to visit any UBA branch or the bank’s official website to begin their application process right away,” Ladipo stated.

More about UBA

United Bank for Africa is one of the largest banks in Africa employing over 25,000 persons and serving over 45 million customers globally. The bank currently present in twenty African countries and the United Kingdom, the United States of America, France, and the United Arab Emirates. UBA provides retail, commercial, and institutional banking services, leading financial inclusion, and implementing cutting-edge technology

UBA says; “We bring Africa to the world and the world to Africa, supporting trade, business growth, financial security and sustainability.

“For over 75 years, we have delivered superior financial services to individuals, businesses, governments, and global organizations across Africa. Our wide range of products and services meets the needs of millions of retail clients seeking savings, security and financial inclusion, and of global businesses requiring sophisticated trade finance solutions. Our ability to combine last-mile payments with global FX and treasury products makes us the partner of choice for anyone seeking global solutions with local execution.”

August 18, 2025 0 comment

Economy

67% MSMEs Battle Demand Slump, Soaring Inflation, …

by Genesis Essien August 14, 2024

written by Genesis Essien

A perfect storm of rising inflation, declining consumer purchasing power, and stiff competition is battering Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), with a staggering 67 percent reporting declining demand over the past two years, according to a new report by PwC Nigeria.

The heart of the problem lies in the relentless surge of inflation, which has sent the cost of living skyrocketing. A whopping 38 percent of MSMEs cited the high cost of products as the primary culprit behind the decline in demand, while 36 percent blamed the dwindling purchasing power of consumers.

The report also highlights the impact of consumer behavior shifts, with 12 percent attributing the decline to product switching and 10 percent to changing consumer preferences.

The survey of 567 MSMEs across the country paints a grim picture of an industry struggling to survive in a challenging macroeconomic environment.

Inflationary Pressure Mounts

Nigeria’s economic woes have been exacerbated by rampant inflation, which hit a record high of 34.19 percent in June 2024. Although there was a slight slowdown in monthly inflation rates since February, the trend reversed in June, defying expert predictions. The Central Bank of Nigeria (CBN) has forecast a decline to 21.4 percent by the end of the year, but experts warn of sustained inflationary pressures due to rising energy costs and exchange rate volatility.

“This is likely to increase the cost of inputs for MSMEs, which will, in turn, raise the prices of final goods and services, further impacting demand,” the PwC report warns.

These macroeconomic challenges are creating a perfect storm for MSMEs, as they grapple with increased input costs and reduced profit margins. The PwC report warns that the pass-through effect of rising inflation will likely lead to higher prices for goods and services, further dampening demand.

MSMEs: Backbone of the Economy Under Threat

The challenges facing MSMEs are particularly concerning given their vital role in the Nigerian economy. According to the NBS/SMEDAN MSME 2021 survey report, MSMEs contributed 46.32 percent to GDP, employed 87.9 percent of the workforce, and accounted for 96.9 percent of businesses. While their contribution to GDP declined slightly in 2021, their role in job creation remains paramount.

“The immense contribution of MSMEs makes them a critical part of Nigeria’s economic fortune,” the report emphasizes.

Despite the formidable obstacles, Nigerian MSMEs have demonstrated remarkable resilience. Sam Abu, country senior partner at PwC Nigeria, commended their adaptability in navigating a complex business environment. However, he emphasized the urgent need for supportive policies to unlock their full potential.

“Despite these challenges, Nigerian MSMEs have demonstrated remarkable adaptability in navigating a complex business environment characterized by challenging macro economy and government policies, highlighting their potential to drive economic growth,” Abu said.

PwC Recommendations

To help MSMEs weather the storm and contribute meaningfully to economic growth, PwC recommends a combination of monetary and fiscal policies. These include:

Targeted support for MSMEs: Implementing policies that directly address the challenges faced by MSMEs, such as access to finance, capacity building, and market development.

Inflation control: Aggressive measures to curb inflation and stabilize the macroeconomic environment.

Improved business environment: Reducing bureaucratic hurdles and creating a conducive business climate for MSMEs to thrive.

Diversification: Encouraging MSMEs to explore new markets and products to reduce dependence on a few sectors.

The survival and growth of Nigerian MSMEs are crucial for the country’s economic recovery. By addressing the challenges they face, policymakers can unlock the immense potential of this vital sector and drive sustainable development.

August 14, 2024 0 comment

Business

NAFDAC Slashes Registration Renewal Fees for MSMEs by 65%

by Genesis Essien January 5, 2024

written by Genesis Essien

CEM REPORT, SMEs | In a move aimed at bolstering the resilience of Micro, Small, and Medium Enterprises (MSMEs) amidst economic challenges, the National Agency for Food and Drug Administration and Control (NAFDAC) has announced a significant reduction in registration renewal fees.

A 65% Relief for MSMEs:

The agency, led by Director-General Prof. Mojisola Adeyeye, has slashed the processing fee for locally manufactured products by a staggering 65per cent, bringing it down to N44,200. This translates to a substantial financial reprieve for MSMEs operating in the food and drug sector.

“This proactive response is designed to alleviate the financial burden on MSMEs and foster a more conducive business environment in Nigeria,” Prof. Adeyeye stated in a press release.

Foreign Products Benefit Too:

The revised charges extend to foreign products, with a 45per cent reduction bringing the processing fee down to $450. This move signifies NAFDAC’s commitment to supporting the entire spectrum of businesses within its regulatory purview.

More Than Just Fees:

NAFDAC’s support for MSMEs goes beyond fee reductions. The agency has also granted a 10per cent review of tariff structure for facility and inspection fees in Special Economic Zones (SEZs), further demonstrating its dedication to fostering an environment conducive to business growth.

A Strategic Response to Economic Headwinds:

Prof. Adeyeye emphasized that the fee reductions are not merely a financial incentive, but a strategic response to the challenges faced by MSMEs in the wake of the recent fuel subsidy removal.

“This is a vital step in supporting both existing and new MSMEs, ensuring that they remain resilient in the face of economic adjustments,” she stated.

NAFDAC Leading the Way:

This initiative aligns with NAFDAC’s broader commitment to creating a thriving business landscape in Nigeria. As the nation grapples with economic shifts, the agency’s tangible support for MSMEs stands out as a beacon of hope, solidifying its role as a driving force for economic prosperity.

January 5, 2024 0 comment

November 12, 2025