Nigerian businesses need more than bank loans to thrive – Finance Minister

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, says Nigerian businesses need more than conventional loans to grow, calling for patient capital, experienced investors and stronger institutional support to help promising enterprises expand.

Mr Oyedele said access to credit alone would not resolve the structural challenges facing entrepreneurs, many of whom struggle to secure the financing, skills and networks required to scale their businesses.

He spoke on Saturday in Abuja at the fourth edition of the Nigeria Sovereign Investment Authority (NSIA) Prize for Innovation, where seven startups received awards worth a combined $277,000.

Speaking through his Special Adviser on Finance and Investment, Marie Ukpere, the minister said small and medium-sized enterprises are vital to livelihoods and employment but often lack the resources to grow beyond their current size.

“We also recognise that high-potential businesses often require more than conventional credit. They need patient capital, experienced investment partners, and networks that can help them enter new markets and achieve scale,” he said.

Mr Oyedele said Nigeria’s ambition to build a $1 trillion economy would depend partly on its ability to help small businesses become medium-sized enterprises and, eventually, larger companies capable of competing in international markets.

Beyond conventional loans

The minister highlighted several government-backed institutions and programmes aimed at improving access to finance and supporting business development.

He cited the Development Bank of Nigeria and the National Credit Guarantee Company as part of efforts to ease financing constraints. The credit guarantee company is designed to reduce lending risks for financial institutions and encourage more lending to small businesses and manufacturers.

He also referred to the Nigerian Consumer Credit Corporation, which is intended to expand access to consumer credit and support household purchasing power, as well as the $618 million Investment in Digital and Creative Enterprises programme, which provides financing and business support to young entrepreneurs.

Mr Oyedele said the NSIA was also anchoring venture capital funds to attract institutional investment into Nigerian businesses.

He added that the authority was developing an impact innovation fund with the Japan International Cooperation Agency, with British International Investment expressing interest in participating.

The proposed fund is expected to support commercially viable businesses addressing economic and development challenges.

“The real measure of your success will not be the prize you receive today. It will be the businesses you go on to build afterwards,” the minister told the finalists.

Earlier, the Managing Director and Chief Executive Officer of the NSIA, Aminu Umar-Sadiq, said the 12 finalists were selected from more than 6,000 applications after five stages of screening and business development activities.

He said the competition formed part of the authority’s strategy to support entrepreneurs alongside its investments in infrastructure and other sectors.

This year’s competition focused on healthcare, manufacturing and food systems, which Mr Umar-Sadiq identified as sectors with the potential to create jobs, build skills and improve productivity.

He said all 12 finalists would participate in a six-week learning programme at Lagos Business School, while strategic partners would offer further opportunities for financing and business development.

According to him, the NSIA works with companies receiving its investment to strengthen corporate governance, improve management and expand demand for their products.

“When the equity injection goes into these companies, we work very closely with the management teams to enhance their value proposition, strengthen their governance and broaden the demand for their products,” he said.

Mr Umar-Sadiq cited previous winners, including Money Africa and Sycamore, as examples of businesses whose progress should be assessed over time.

He said the impact of startup investments should be measured over about five years rather than judged by immediate results.

Healthcare investment opportunities

Also speaking, the National Coordinator of the Presidential Unlocking Healthcare Value Chain Initiative, Abdu Mukhtar, described healthcare as a significant investment opportunity.

He estimated Nigeria’s addressable healthcare market at $20 billion and said the sector already has about 250,000 small and medium-sized enterprises, citing figures from the International Finance Corporation.

“We estimate that across the healthcare value chain, the addressable market is about $20bn. There are already about 250,000 SMEs in healthcare, according to the IFC,” he said.

Mr Mukhtar identified pharmaceutical manufacturing, medical devices, clinical research, telemedicine and healthcare logistics as areas where entrepreneurs could develop businesses.

Affiong Williams, founder and chief executive officer of ReelFruit and lead judge of the competition, said her company had raised more than $7 million over 14 years.

She attributed its ability to attract investment to preparation, credibility, and resilience, urging entrepreneurs to understand customer needs, build strong networks, and stay focused despite economic uncertainty.

Dave DeLucia, founder and director of Cascador, said preparing businesses to attract investment was as important as providing capital.

“Capital readiness is just as important or more than the capital itself,” he said, adding that entrepreneurs outside Lagos often needed greater institutional support.

Seven startups receive awards

At the competition, Come Again Foods emerged as the overall winner, receiving a combined prize of $105,000.

Protein Kapital came second with $70,000, while InstantRad placed third, receiving $50,000.

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Other award recipients were Eight Medical, Uwana Energy, Tryctor and Smartei Agri Tech.

The NSIA said the $277,000 award package comprised $220,000 from the authority, $45,000 from Cascador and $12,000 from Wema Bank.

Beyond the cash awards, the finalists are expected to benefit from business development support and opportunities to connect with potential investors.

The competition is part of the NSIA’s efforts to support innovative businesses and help them develop into sustainable enterprises in Nigeria.