Chief Executive Officer of the Impact Investors? Foundation, Etemore Glover, has raised concerns over the staggering $158.1 billion financing gap crippling the growth of small and medium-sized enterprises (SMEs) in Nigeria.

Glover disclosed this in an interview with journalists at the closing of the Onyx Investment Advisory Limited (OnyxIAL) and United Nations Development Programme (UNDP) Nigeria SDG Investment Forum on Saturday in Abuja.

This came as not less than three Nigerian SMEs received both funding and financial advisory from the UNDP and OnyxIAL to unlock a blend of $50 million in capital finance from the public and private sectors.

Glover said that despite SMEs contributing over 50 per cent to Nigeria?s Gross Domestic Product (GDP) and providing more than 80 per cent of employment, they continue to struggle to access affordable financing that could help them scale their operations and create more jobs.

She said: ?In 2019, when we valued the impact investment market, it was about $4.7 billion. Eighty per cent of that came from local financial institutions, with an average ticket size of $15?16 million, while private sector contributions accounted for only 20 per cent, with an average ticket size of $2 million. How many small businesses can absorb that kind of money?

Glover stated that the missing middle capital sizes ranging between $50,000 and $250,000 remain largely inaccessible to most Nigerian SMEs.

?The financing gap in the SME space in Nigeria is $158.1 billion. This is huge. We must be strategic and intentional in bridging this gap if we want SMEs to fully play their role in job creation and economic growth,? she added.

Senior Assistant to the Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure (NASENI), Mohammed Yadudu, said the federal government, in less than two years, rolled out an initiative to provide funding for entrepreneurs and boost the country?s economy.

According to him, the government has the right policies that are working; however, there are still gaps in terms of framework and implementation.

?So as of right now, we absolutely have fantastic policies that we?re working with. However, there?s a gap in terms of frameworks and other policies, and that?s what NASENI is actually working on.

?We did a diagnostic for the things that our mandate allows us to do. We did the diagnostic and saw areas of, I would say, shortfall when it comes to framework and policy alignment. So in those areas, we?re developing those frameworks in partnership with other key stakeholders, such as the Nigerian Communications Commission, which is the National Council on Climate Change, the Nigerian Electricity Regulatory Commission, and other key stakeholders.

?We?re currently developing some frameworks that are going to enable both ministries, departments, agencies, and the private sector as well to engage in certain value areas in the country,? he said.

On her part, the Chief Executive Officer of Onyx, Aisha Yakubu Bako, said despite SMEs contributing 48 per cent to Nigeria?s Gross Domestic Product, the sector received only five per cent of commercial banks? credit with high interest rates.

?To address the funding gap that most SMEs in Nigeria are currently facing, we need to focus on building their capacity and ensuring they are investment-ready. Investors seek businesses that can guarantee returns on their investments while also creating a positive impact.?

Earlier, co-founder of Trashcoin, Damilola Daramola, and Mastura Bello, Head of Operations for Seed Project Company, secured the UNDP-backed financing to boost their businesses. (The Guardian)

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