With Nigeria’s economic stability and growth prospects fundamentally tied to the productivity of its Micro, Small, and Medium Enterprises (MSMEs), financial leaders are now advocating for a radical, digital-first strategy for capital provision.
This was revealed at the Financial Inclusion Seminar 2025, convened by Accion Microfinance Bank (MfB) under the theme: “Unlocking MSME Value Chain to Drive Growth and Prosperity: The Evolving Role of Financial Institutions.” Experts asserted that the current volatility and historical limitations mandate a strategic overhaul.
According to the experts, financial institutions must transition from being mere credit suppliers to becoming ecosystem architects and value-chain enablers for MSMEs, stressing that to safeguard this vital sector that contributes nearly 48 percent of the nation’s GDP and employs over 84 percent of the workforce, the financial industry must abandon its rigid reliance on physical assets and embrace integrated, data-driven lending models.
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Speaking on the structural barriers limiting MSME access to finance, Taiwo Joda, managing director of Accion Microfinance Bank, said credit assessment models must reflect how small businesses actually operate rather than depend on physical assets many do not possess.
Joda highlighted the necessity of using non-traditional metrics: “Crucial non-traditional data include sales and cash-flow records, mobile money and POS transactions, supplier and buyer payment histories, inventory turnover, online reviews or ratings, and utility or telecom payments. These reflect real business performance and reliability, allowing lenders to assess creditworthiness without relying on physical assets.”
He explained the concept of embedding finance: “Embedding financial services into value chains lets Accion reach SMEs where they already operate suppliers, distributors, or marketplaces, so lending, payments, and insurance become part of daily business activities. This bypasses the need for formal branches or heavy documentation, capturing MSMEs that traditional banks often overlook.”
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According to Joda, “Accion is planning to deploy an MSME finance product that can be accessed through a web portal or App. This product will allow MSME businesses to gain access to finance through a self-service digital channel from the comfort of their business locations.”
He further clarified the marketplace element: “The platform will include a marketplace comprising the suppliers, manufacturers, and retailers to engender market interaction and payment settlements.”
Paul Ehiagbonare, chief digital officer, Accion MFB, on his part, explained that modern MSME financing utilises value-chain structures and invoice-discounting models to let micro-enterprises fulfil large orders immediately, bypassing lengthy 45-day payment cycles.
He added that this approach is strengthened by established dealer-supplier relationships, which provide lenders with the necessary natural assurances without demanding heavy documentation or land titles.
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Ehiagbonare noted that to assess creditworthiness, Accion MFB is actively partnering with MTN and other telcos to leverage telco-level behavioural data, including movement patterns, POS footprints, and mobile-money activities, which capture the real operational behaviour of MSMEs who lack formal bank records.
“These data points, where they trade, whether they frequently visit lending apps or financial locations. It helps us know who is stable, who is scaling, and who is likely to default,” he said.