Financial experts have identified inadequate financial records and a seeming lack of business structure among operators of micro, small and medium enterprises (MSMEs) in the country as some of the challenges impeding the growth of their businesses.

Speaking at a free seminar by the bank, aimed at nurturing business for growth among MSMEs operators in the north central zone held in Ilorin on Thursday, the Group Head of Retail Banking, Skye Bank Plc., Nkolika Okoli, said the people had failed to access opportunities presented to them by the Federal Government through the Central Bank of Nigeria and Bank of Industry by way of single digit loans.

Nkolika, who said the government intervention funds are available through the CBN and the Bank of Industry, but SME businesses are not coming forth to access it as expected. The major challenge faced by these Entrepreneurs is lack of records as most of them tend to hold information in their memory.

“So, we are here to help them know how they can access these funds which come at single digit interest rates.”

“Challenges of MSMEs are mainly in the area of financial knowledge leading to complaints about lack of access to finance.  The aim of this seminar is to support operators of MSMES to grow. Our value promise to all MSMES is that we will help nurture their businesses for growth. We are consciously looking for small businesses to nurture from small to growing and to an established level.

“This seminar is meant for them to imbibe the knowledge they need to make that leap to the next level. The current economic environ provides huge opportunities for local industries, especially those who do not rely on imported raw materials. Nigerians are now forced to look inwards for their needs and the resort to foreign goods has been effectively curtailed by the current foreign exchange scarcity. So the time is right and local manufacturers who can get their acts right will thrive. Skye bank will support our customers who fall within this segment to take advantage of the huge market opportunities presented by the current economic clime.”

On the complaint by SME’s that Banks do not give them loans, Okoli said “Banks are in the business of financial arbitrage so need to give loans to make profit. We can’t be in business without giving loans. But we speak different languages. The banks want to see financial records, we want to see your books, and this does not have to be a formal Management account but the typical entrepreneur will say you just need to believe their stories. But Banking doesn’t work like that, we are highly regulated. Through our SME business seminars, which we have taken across the country, we teach our SME customers skills in the area of financial record keeping, inventory management, HR skills as well as provide platforms to expand their access to market like our Ecommerce platform (the YESMALL)”.

She further informed the SME’s present that Skye bank has recently launched a new lending methodology in conjunction with the International Finance Corporation (IFC) to assist SME’s with flexible collateral (security with emotional value) have access to soft loans for working capital purposes.

Also speaking, the Regional Manager – Ilorin, Skye Bank Plc, Bimbo Akorede, said despite the global economic recession banks still have a lot of business opportunities mostly in the SME segment of the market.

“Clearly, focus is now shifting to SME’s and businesses in this segment should quickly take the opportunity presented especially given the large market available in Nigeria. Skye bank is encouraging the entrepreneurs in Ilorin to put up their products on its web mall to access the Lagos market as well as markets in far flung regions like the South East and South South.”

Representatives from the Bank of Industry (BOI) as well as the National Association of Small and Medium Entrepreneurs (NASME) attended the seminar.

L-R: Regional Manager, Kwara & Oyo North, Skye Bank Plc., Bimbo Akorede, Head, Small Business, Skye Bank Plc., Ayodele Olojede, Guest Speaker, Managing Director, Padson Industries, Ilorin; Hezekiah Oladipo Adediji, Deputy Director , Regional Head, Taxpayer Services, FIRS; Mr. Oluwafemi Ayara and Group Head, Retail Banking , Skye Bank Plc., Nkolika Okoli at the monthly Skye Business Seminar held in Ilorin, 25th February, 2016.  

L-R: Head, Small Business, Skye Bank Plc., Ayodele Olojede, Assistant Manager, Bank of Industry, Mohammed Ismail, Group Head, Retail Banking , Skye Bank Plc., Nkolika Okoli, State Chairman, Nigerian Association of Small & Medium Scale Enterprises (NASME), Mr. Ajisefinni Tajudeen and Regional Manager, Kwara & Oyo North, Skye Bank Plc., Bimbo Akorede, at the monthly  Skye Business Seminar held in Ilorin today, 25th February, 2016.