FirstBank has reaffirmed its commitment to financing micro, small and medium-sized enterprises (MSMEs), describing access to capital for productive businesses as an important driver of investment, industrialisation and job creation in Nigeria.
The bank’s Managing Director and Chief Executive Officer, Olusegun Alebiosu, made this known during a breakout session at the 32nd Nigerian Economic Summit in Abuja, where he discussed the role of financial institutions in supporting businesses and strengthening the country’s productive capacity.
According to Alebiosu, financing manufacturers and agro-processing businesses can help entrepreneurs establish factories, acquire raw materials, increase domestic production and create employment opportunities.
He stressed that industrialisation remains essential to absorbing Nigeria’s growing population and the increasing number of graduates entering the labour market.
“The teeming population that we have and the graduates that we are churning out, the only thing that can absorb them is industry,” he said.
His remarks highlight the importance of directing financial resources towards businesses that produce goods, develop local value chains and create sustainable economic opportunities.
Financing Local Manufacturing and Agro-Processing
Alebiosu disclosed that FirstBank had supported businesses involved in rice milling, plantation agriculture and agro-processing, including palm oil processing.
These investments are intended to strengthen local production and support businesses operating across different stages of the agricultural and manufacturing value chains.
Access to financing allows entrepreneurs to invest in production facilities, purchase equipment, secure raw materials and expand their operations.
For Nigeria, increasing domestic manufacturing capacity could also reduce dependence on imported products and improve the competitiveness of locally produced goods.
The FirstBank chief executive encouraged entrepreneurs to explore opportunities in manufacturing, agro-processing, industrial power generation and industrial clusters.
He explained that industrial investment creates economic activities beyond the factories themselves.
For instance, factories generate demand for transportation, food services, accommodation, schools, healthcare facilities and other businesses that serve workers and surrounding communities.
This means that investment in one industrial operation can support several other businesses and generate employment across different sectors.
Loan Repayment Challenges Remain a Concern
Despite the opportunities available in the MSME sector, Alebiosu identified poor credit culture and loan repayment failures as major challenges affecting access to business financing.
He explained that when borrowers fail to meet their repayment obligations, financial institutions become more cautious about extending credit.
This can make it more difficult for genuine entrepreneurs to secure the funding required to expand their businesses.
He therefore urged business owners to demonstrate financial discipline, strong management capabilities and the ability to repay loans.
According to him, entrepreneurs must also understand how to deploy borrowed funds effectively and ensure that financing is used for its intended business purpose.
The FirstBank chief executive also acknowledged that high borrowing costs, including double-digit lending rates, could discourage investment in manufacturing and other productive activities.
However, he encouraged entrepreneurs not to abandon viable business opportunities solely because of the cost of credit.
He further identified foreign exchange stability as an important requirement for businesses, particularly manufacturers that depend on imported machinery, equipment and production inputs.
Greater stability, he explained, would help companies plan their investments and manage production costs more effectively.
FirstBank Highlights Support for Women-Owned Businesses
Alebiosu also highlighted the bank’s FirstGem initiative, which provides support for women-owned businesses across different sectors.
He disclosed that the programme had been operating for approximately five years and had expanded its reach to businesses involved in tailoring, fashion, beauty and food processing.
According to him, the initiative focuses on supporting productive enterprises rather than concentrating only on conventional trading activities.
The bank considers women entrepreneurs an important part of the country’s business community, with their enterprises capable of supporting household incomes, expanding commercial activities and creating employment.
He added that young women were increasingly embracing the initiative, reaffirming FirstBank’s commitment to supporting women-led businesses.
SMEConnect and the Importance of Business Support
FirstBank’s broader MSME support strategy also includes its SMEConnect platform, which provides business advisory services, capacity-building opportunities and access to financial products.
The bank explains that SMEConnect is designed to support businesses in areas such as manufacturing, agriculture, professional services and trading.
Beyond financing, the platform provides resources to help business owners address challenges relating to business planning, cash flow, raw materials, marketing, distribution and logistics.
These services are important because access to funding alone does not guarantee business success.
Entrepreneurs also need the technical knowledge, management structures and financial records required to operate sustainably and attract investment.
FirstBank’s approach reflects the growing recognition that small businesses need both financial and non-financial support to expand their operations.
Investment and Job Creation Remain Central to Nigeria’s Growth
The bank’s position comes amid ongoing efforts to strengthen Nigeria’s productive sectors, attract private investment and create employment opportunities.
MSMEs play an important role in economic development because they provide livelihoods, support local supply chains and contribute to commercial activities across communities.
However, businesses continue to face challenges involving access to affordable credit, high operating costs, infrastructure gaps and limited access to long-term financing.
Addressing these challenges will require collaboration between financial institutions, government agencies, development finance organisations and private investors.
Alebiosu’s comments reinforce the need to direct more financing towards businesses capable of increasing domestic production and generating employment.
For FirstBank, supporting manufacturers, agro-processors and women-owned enterprises remains part of its broader commitment to entrepreneurship and economic development.
Ultimately, the success of such financing efforts will depend on businesses’ ability to use capital productively, maintain sound financial practices and build sustainable operations.
