SMEs need infrastructure beyond financing – FCMB Senior VP

Small and medium-sized enterprises in Nigeria need a multifaceted approach to sustainable growth, extending beyond financial access to include critical infrastructure, skills development, and digital transformation. George Ogbonnaya, Senior Vice President and Divisional Head of Business Banking at FCMB, highlighted these needs, emphasizing that reliable electricity, efficient logistics, and robust digital infrastructure are paramount for competitiveness.

“

Infrastructure remains one of the most significant challenges. Reliable electricity, efficient logistics networks, and strong digital infrastructure are critical for competitiveness.

Ogbonnaya pointed to energy as a particularly significant cost factor for businesses, noting FCMB's investment in renewable energy financing to help companies access alternative power solutions. He also stressed the importance of improving logistics networks to reduce the cost and complexity of moving goods within Africa, a major barrier to trade. Furthermore, affordable access to digital tools and services is crucial as technology increasingly drives competitiveness.

Beyond physical and digital infrastructure, Ogbonnaya underscored the necessity of skills development and capacity building. He explained that entrepreneurs often start as sole operators but require management capabilities, leadership skills, and specialized expertise to scale successfully. This transition involves building systems, managing teams, and implementing growth strategies, with capacity building playing a vital role.

“

Energy is particularly important because of its direct impact on operating costs. This is one reason we have invested significantly in renewable energy financing.

Access to markets and simplified regulatory processes are also key enablers for SMEs. Ogbonnaya suggested that mechanisms connecting producers to larger markets can significantly enhance growth opportunities. He also noted that reducing administrative complexity would greatly benefit small businesses, allowing entrepreneurs with limited resources to focus more on growth rather than compliance.

“

The cost and complexity of moving goods within Africa remain significant barriers to trade and growth. Improving logistics infrastructure would have a substantial positive impact on businesses.

FCMB's approach is shaped by its heritage as the first indigenous Nigerian bank, with a commitment to fostering sustainable growth in its communities. The bank's purpose extends beyond financial services, aiming to help businesses become more competitive and stronger.

“

Technology has become a key driver of competitiveness, and businesses need affordable access to digital tools and services.