Loans alone cannot grow Nigerian businesses — Oyedele

Nigeria’s small businesses need patient capital, experienced investors and institutional support beyond conventional bank loans to expand and compete internationally, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said.

Oyedele said inadequate financing, technical expertise and institutional backing continued to prevent promising businesses from scaling up, warning that access to credit alone could not address the structural challenges facing entrepreneurs.

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

Represented by his Special Adviser on Finance and Investment, Marie Ukpere, the minister said small and medium-sized enterprises sustained millions of livelihoods and provided jobs but often struggled to access the resources needed for expansion.

“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.

He added, “Too many promising businesses struggle to grow because they cannot access financing, skills, or institutional support they need to succeed.”

Oyedele said Nigeria’s ambition to build a $1tn economy depended partly on helping small businesses grow into medium-sized enterprises and eventually large companies capable of competing in international markets.

He identified the Development Bank of Nigeria and the National Credit Guarantee Company as institutions supporting access to business financing, noting that the credit guarantee scheme was designed to reduce lending risks and encourage banks to provide loans to small businesses and manufacturers.

The minister also highlighted the Nigerian Consumer Credit Corporation’s efforts to strengthen household purchasing power and domestic demand.

He cited the $618m Investment in Digital and Creative Enterprises programme as another government intervention supporting young entrepreneurs through financing, skills development and business assistance.

Oyedele disclosed that the NSIA was 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.

According to him, the proposed fund would 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,” he 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.

Umar-Sadiq explained that the competition was part of the authority’s investment strategy to support entrepreneurs alongside its infrastructure financing activities.

He said healthcare, manufacturing and food systems were prioritised in this year’s edition because of their potential to create jobs, develop skills and improve productivity.

The NSIA chief added that all 12 finalists would participate in a six-week learning programme at Lagos Business School, while strategic partners would provide additional opportunities for financing and business development.

He said the authority worked closely with companies receiving equity investments to improve corporate governance, strengthen management and expand demand for their products.

Citing previous beneficiaries, including Money Africa and Sycamore, Umar-Sadiq said the impact of startup investments should be assessed over approximately five years rather than expecting immediate results.

Also speaking, the National Coordinator of the Presidential Unlocking Healthcare Value Chain Initiative, Dr Abdu Mukhtar, identified healthcare as a major investment opportunity, estimating Nigeria’s addressable healthcare market at $20bn.

He identified pharmaceutical manufacturing, medical devices, clinical research, telemedicine and healthcare logistics as areas offering opportunities for entrepreneurs.

The founder and Chief Executive Officer of ReelFruit and lead judge of the competition, Affiong Williams, said her company had raised more than $7m over 14 years, attributing its ability to attract investment to preparation, credibility and resilience.

She urged entrepreneurs to understand customer demand, build strong networks and remain focused despite economic instability.

Similarly, the Founder and Director of Cascador, Dave DeLucia, stressed that 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.

At the competition, Come Again Foods emerged as the overall winner, receiving a combined $105,000 prize. Protein Kapital came second with $70,000, while InstantRad placed third with $50,000.

Other beneficiaries 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, alongside additional opportunities for business development and investment support.