The managing director of Regent Microfinance Bank, Idris Olugbesan, has emphasised that the future of small and medium scale enterprises (SMEs) in Nigeria will depend largely on three critical factors, namely access to capital, trust within the financial ecosystem, and the strategic use of technology.
He made this known during a recent media interaction where he discussed the evolving landscape for small businesses in Nigeria and the role financial institutions must play in supporting sustainable enterprise growth.
According to Olugbesan, SMEs remain the backbone of Nigeria’s economy, contributing significantly to employment and economic activity, yet many still struggle with limited access to funding and the financial tools required to scale their operations.
“Small businesses are central to economic growth in Nigeria, but their ability to grow sustainably depends on how effectively they can access capital, build trust with financial institutions, and leverage technology,” he stated.
He noted that access to affordable and structured financing remains one of the biggest barriers faced by Nigerian entrepreneurs.
He explained that many SMEs operate informally or lack proper financial documentation, which often makes it difficult for them to secure funding through traditional banking systems.
Financial institutions must design more inclusive financial products that understand the realities of small business operations, according to him.
“SMEs require financing models that reflect the nature of their businesses. When financial products are designed around the real needs of entrepreneurs, it becomes easier for businesses to grow and contribute meaningfully to the economy,” he said.
Beyond access to funding, the Regent Microfinance Bank manager emphasised the importance of trust between financial institutions and small business owners.
He noted that trust plays a critical role in encouraging entrepreneurs to engage with formal financial systems, access credit facilities, and adopt structured financial practices.
“Trust is fundamental to financial inclusion. When entrepreneurs trust financial institutions, they are more willing to adopt formal banking solutions that support long term business growth”.
He added that building this trust requires transparency, responsible lending practices, and consistent customer engagement from financial institutions.
He also highlighted the growing importance of technology in transforming how SMEs operate and access financial services.
He explained that digital banking platforms, mobile payment solutions, and financial management tools are helping businesses operate more efficiently and manage their finances more effectively.
“Technology is redefining how businesses interact with financial services. Digital platforms are making it easier for entrepreneurs to access banking services, monitor transactions, and manage their businesses in real time,” he noted.
The MD stressed that strengthening Nigeria’s SME ecosystem requires collaboration between financial institutions, regulators, and business support organisations.
He explained that providing capital alone is not enough; entrepreneurs also need financial education, access to markets, and supportive policies that encourage business development.