Nigeria’s small and medium-sized enterprises need more than access to finance to thrive, according to FCMB’s Senior Vice President and Divisional Head of Business Banking, George Ogbonnaya, who highlights infrastructure, skills and digital transformation as critical growth drivers, in this interview with OKECHUKWU NNODIM Beyond financing, what additional support do Nigerian businesses need to scale sustainably?
Infrastructure remains one of the most significant challenges. Reliable electricity, efficient logistics networks, and strong digital infrastructure are critical for competitiveness. Energy is particularly important because of its direct impact on operating costs.
This is one reason we have invested significantly in renewable energy financing. By helping businesses access alternative energy solutions, we can reduce costs and improve profitability. Logistics is another major issue. 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. Digital infrastructure is equally important. Technology has become a key driver of competitiveness, and businesses need affordable access to digital tools and services. Skills development is another area that requires attention.
Entrepreneurs need management capabilities, leadership skills and specialised expertise to scale successfully. Many business owners begin as sole operators but eventually need to build systems, manage teams and implement growth strategies. Capacity building plays a crucial role in facilitating that transition.
Market access is also important. Businesses need support in reaching customers and expanding demand. Mechanisms that connect producers to larger markets can significantly enhance growth opportunities. Finally, simplifying regulatory processes would benefit SMEs considerably.
Many small businesses operate with limited resources and cannot maintain dedicated compliance departments. Reducing administrative complexity would improve ease of doing business and allow entrepreneurs to focus more on growth. Nigeria’s business environment has remained challenging, with high inflation, elevated interest rates and rising operating costs.
How is FCMB helping businesses navigate these conditions? Before answering that question directly, it is important to explain why FCMB does what it does. FCMB has a rich heritage as the first indigenous Nigerian bank. Historically, the institution played a significant role in Nigeria’s economic development, including supporting indigenous participation in the ownership of companies during the indigenisation era.
That history continues to shape how we approach business today. At the heart of our operations is a commitment to fostering sustainable growth in the communities we serve. Our purpose goes beyond providing financial services. We are passionate about helping businesses become more competitive, grow into stronger enterprises and ultimately contribute to national development.
That philosophy influences how we support SMEs and other businesses, especially during difficult economic periods. Today, businesses are operating in a very challenging environment. Inflation remains high, interest rates are elevated, and the cost of production has increased significantly.