FirstBank Links MSMEs Financing to Nigeria’s Investment, Job Drive

 

BY NGOZI ONYEAKUSI

As Nigeria steps up efforts to attract global investment and create jobs, FirstBank Nigeria Limited is positioning financing for micro, small and medium enterprises (MSMEs) as a key channel for converting new capital into local production, stronger supply chains and employment.

The focus reflects a wider economic challenge. While international investors may fund major projects, domestic businesses need access to credit, markets and support to participate in those investments and help deliver sustainable growth.

FirstBank is among the financial institutions offering financing products and support services to small and medium-sized enterprises. Its MSMEs strategy is therefore relevant to Nigeria’s broader agenda of expanding private-sector activity, strengthening local businesses and addressing the jobs gap.

 

The importance of such support came into focus at the 2026 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group, held in Bangkok, Thailand, from October 12 to 18.

Global economic leaders at the meetings examined ways to mobilise private capital, expand business opportunities and address the growing jobs challenge.

At a World Bank Group session on MSMEs financing on October 13, World Bank Group President Ajay Banga highlighted the importance of small businesses to developing economies, noting that they account for 90 per cent of businesses and 75 per cent of employment in those economies.

Banga also drew attention to the employment challenge facing developing countries. He said approximately 1.2 billion young people would reach working age over the next 10 to 15 years, while only about 420 million jobs were expected to be created.

 

The figures underscore the urgency of supporting enterprises that can expand economic activity, absorb workers and create opportunities for entrepreneurs.

 

To address the financing and growth constraints facing MSMEs, the World Bank Group outlined a strategy built around four priorities: making businesses visible through reliable digital records, connecting them to markets and services, simplifying the conditions required to operate and expand, and improving access to funding.

The strategy recognises that many small businesses struggle to secure bank loans because they lack conventional collateral, adequate financial records or a borrowing history that lenders can use to assess their creditworthiness.
Under the proposed approach, digital payments, transaction records, electronic invoices and cash-flow information could help financial institutions assess businesses more effectively and identify viable borrowers who might otherwise be excluded from formal lending.

 

For Nigerian banks, the recommendations highlight the opportunity to combine conventional financing with digital solutions and business support services to reach a wider pool of entrepreneurs.

FirstBank already offers a range of  SMEs financing products, including asset finance, invoice discounting, contract finance, local purchase order financing and secured lending facilities. Its SME Connect initiative also brings together resources, products and services designed to support businesses.

These offerings provide a basis for examining the role of commercial banks in helping enterprises obtain the funds required for working capital, equipment purchases, contract execution and business expansion.
However, the availability of financing products alone may not be sufficient to address the difficulties facing many MSMEs.

Borrowing costs, collateral requirements, limited financial records and the risks associated with lending to small businesses can continue to restrict access to credit.

This makes the development of suitable lending arrangements, stronger digital infrastructure and effective business advisory services important to improving the ability of small enterprises to secure finance.
Nigeria’s pursuit of international investment also makes MSMEs financing relevant beyond the banking sector.

While foreign capital can support major projects and expand economic activity, domestic businesses need access to funding and markets to participate meaningfully in supply chains and benefit from new investment opportunities.

 

Stronger MSMEs can contribute to this process by supplying goods and services, supporting larger businesses, developing local value chains and creating employment across different sectors of the economy.

Consequently, the World Bank’s emphasis on digitalisation, business connectivity and access to finance offers a useful framework for Nigerian financial institutions, including FirstBank, as they seek to support private-sector development.