FirstBank Gives Reason for N200b Loans to MSMES

First Bank of Nigeria Limited (FirstBank) has highlighted poor funding as one of the primary challenges facing Micro, Small, and Medium Enterprises (MSMEs) in the country.

Mr. Abiodun Famuyiwa, Head of SMEs Banking at FirstBank, stated that the bank recognized the urgent need to address the funding gap within the MSME sector.

In response, FirstBank has taken significant steps by lending over N200 billion to support the growth of these enterprises in 2024.

Famuyiwa made these remarks at the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) 2025 National MSMEs Conference in Lagos, emphasizing the critical impact of funding issues on the sustainability and development of MSMEs.

We can’t shy away from it because they need money to be able to run their operations. And in this area, FirstBank has come handy”.

The conference with “Grow Nigeria: Building a Future of Innovation, Resilience , and Prosperity” as theme also focused on businesses, finance, technology and the creative economy.

Continuing, Famuyiwa said: “I can tell you confidently that last year, we disbursed about N100 billion to businesses in across diverse markets alone. Petty traders also got about N70 billion, not to talk of businesses in other areas. Overall, FirstBank disbursed over 200 billion to small businesses in one year.

Describing the feat as remarkable, he said: “So, we are wholeheartedly supporting them, and this funds are majorly given to them without any collateral at all. We just look at the way they do their businesses and determine what they can actually afford”.

He further said that part of what the bank does is to look at the risk criteria of each SME to avoid lending beyond capacity.

“We do not want to give SMEs money that will put them into trouble. So, we try to assess their businesses and also ensure that we monitor the usage of that fund,” he said.

Famuyiwa said FirstBank has been directly involved in ensuring that SMEs businesses move to the next level.

“We’ve organized different webinars, seminars for SMEs on how they can scale their businesses because growing businesses is not just about money alone. When the money is given to you, what do you do with it? How do you use that money effectively to be able to expand your business?”

He said the bank’s SME Connect, remains an avenue for SMEs to meet, exchange ideas and learn from the experts.

“We also enable them to meet with mentors who have been in those businesses for them to share their experiences, ask questions. They can express their pains, and such mentors will be able to respond to them effectively,” he said.

“For instance, now we have POs that we give out to SMEs to be able to ensure that they can be able to do their businesses seamlessly. We also have SME liability accounts, which enables them run their businesses without any extra charge at all. So these are some of the additional efforts the bank actually used to be able to support the SME businesses,” he said.

“Discussions during the conference further focused on policy dialogue that will support the review of National MSME Policy, which expired this year, and guide the development of a new five year policy framework. This session brings together federal, state, private sector leaders, financiers, development partners and MSME associations.

The GROW Nigerian Fair ran as a large-scale exhibition showcasing some of Nigeria’s most promising SMEs across food, fashion, manufacturing, technology, entertainment and other sectors.