By: Goodluck E. Adubazi, Abuja.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has described small and medium-sized enterprises (SMEs) as the backbone of Nigeria’s economy, stressing that their growth is critical to job creation, economic prosperity and national development.
Oyedele stated this while addressing the Nigerian Sovereign Investment Authority (NSIA) Prize for Innovation Demo Day 4.0, themed “Building for Impact,” held at the Abuja Continental Hotel.
Represented at the event, the minister said that although investment, infrastructure, industrialisation and fiscal stability remained important economic priorities, the strength of the economy ultimately depended on businesses that produced goods, delivered services, employed citizens and created opportunities.
According to him, SMEs sustain millions of livelihoods and support economic activities across virtually every sector, making them indispensable to Nigeria’s economic future.
He noted that Nigeria’s youthful population presented enormous opportunities for entrepreneurship but emphasised that the government must create an enabling environment for young people to establish businesses, develop new industries and generate employment.
Oyedele acknowledged that many promising businesses continued to struggle because of limited access to financing, skills and institutional support.
He said the Federal Government was addressing these challenges through initiatives, including the Development Bank of Nigeria, the National Credit Guarantee Company (NCGC), the Nigerian Consumer Credit Corporation (CreditCorp) and the Investment in Digital and Creative Enterprises (iDICE) programme.
The minister also highlighted NSIA’s role in supporting the establishment of some of these institutions and its efforts to mobilise institutional investment into promising Nigerian enterprises through venture capital funds.
He disclosed that NSIA was developing an impact innovation fund in partnership with the Japan International Cooperation Agency (JICA), with British International Investment (BII) expressing interest in participating.
According to him, the fund is expected to support commercially viable businesses addressing significant economic and development challenges.
Oyedele said access to finance alone was insufficient to guarantee business success, noting that entrepreneurs also needed patient capital, experienced investment partners, market access and opportunities to demonstrate the commercial viability of their ideas.
He described the NSIA Prize for Innovation as an important platform for preparing promising Nigerian businesses for sustainable growth, commending the authority for placing commercial viability and execution capacity at the centre of its selection process.
Congratulating the 12 finalists, the minister urged them to remain ambitious, disciplined and committed to building sustainable enterprises, irrespective of the competition’s outcome.
“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 said.
He expressed optimism that some of the finalists would emerge as leading Nigerian enterprises within the next five to 10 years, employing thousands of Nigerians, attracting significant investments and developing solutions for markets across Africa.
Oyedele also commended NSIA’s leadership, judges, mentors and partners, including Cascador, Pula and Wema Bank, for their contributions to promoting entrepreneurship and innovation.
Meanwhile, the lead judge of NPI 4.0 urged Nigerian entrepreneurs to remain resilient, understand their customers and build businesses capable of attracting investment and achieving long-term growth.
Drawing from her 14-year entrepreneurial journey with Real Fruit, she recounted how her first experience with a government grant ended in rejection, despite progressing to the next stage of the selection process.
She said the experience taught her that rejection was not the end of an entrepreneurial journey, urging the finalists to pursue other opportunities and remain focused on their ambitions.
According to her, entrepreneurs must understand their target customers, establish product-market fit and develop products and services that people are willing to pay for.
She explained that Real Fruit began when dried fruit products had little or no established market presence, but the company had since demonstrated the viability of the market locally and internationally.
The judge further stressed the importance of building a strong reputation, maintaining professional networks and demonstrating commitment and preparedness to prospective investors.
She disclosed that her business had raised more than $7 million from individuals and institutions over the years, attributing the achievement to resilience, preparation and relationships.
She also encouraged founders to remain steadfast amid Nigeria’s macroeconomic challenges, including currency fluctuations, policy changes and global economic uncertainties.
Similarly, the founder and director of Cascador, David DeLucia, emphasised that preparing entrepreneurs to manage investments effectively was as important as providing them with capital.
He said Cascador supported technology and real-economy businesses through capital-readiness training and funding options, including working-capital credit lines, long-term debt and equity investments, in partnership with Sterling Bank.
DeLucia explained that businesses outside Lagos often required additional support because their founders had less access to established entrepreneurial networks, accelerators and institutional guidance.
Citing examples of Cascador-supported businesses, he described how the organisation helped entrepreneurs strengthen their leadership teams, introduce technology, establish boards and attract institutional funding.
He disclosed that one of the supported businesses, Neat Microfinance, had expanded its services from approximately 4,000 women traders to nearly 40,000 following institutional and technological support.
He also cited Fingertips, a bakery that had grown into a factory producing more than seven million loaves of bread annually and employing about 200 people.
DeLucia urged the finalists to recognise that the skills and teams that helped establish their businesses might not be sufficient to manage the next phase of expansion.
He advised them to seek experienced mentors, strengthen their management structures and remain humble enough to learn from people who had successfully built businesses at scale.
The NPI 4.0 Demo Day brought together entrepreneurs, investors, government representatives and private-sector stakeholders to showcase innovative businesses and strengthen support for Nigerian enterprises with the potential to generate economic and social impacts.
