Accion Microfinance Bank has issued a powerful call to action, urging Nigerian regulators and lenders to dismantle barriers preventing millions of small businesses from accessing vital capital. The bank made this appeal during its 8th annual financial inclusion seminar, held virtually on 19 December 2025.
Moving Beyond Traditional Collateral
The seminar, themed ‘Unlocking MSME Value Chain to Drive Growth and Prosperity,’ highlighted a critical mismatch in Nigeria's economy. Over 80% of jobs and a significant portion of GDP come from informal small businesses, yet the financial system still relies on traditional collateral and rigid paperwork that excludes them.
Taiwo Joda, Managing Director of Accion Microfinance Bank, stated that complex rules often discourage entrepreneurs before they even start. He emphasised the need for a continuous dialogue to create simpler, digital-first systems for customer onboarding.
Four Key Reforms for Immediate Impact
Joda outlined four urgent reforms that the Federal Government and financial regulators should implement to unlock value-chain financing:
- Simplifying Know-Your-Customer (KYC) requirements for low-risk MSMEs to ease entry.
- Relaxing collateral rules to allow lending based on cash flow.
- Accelerating regulatory approvals for digital lending platforms.
- Enforcing faster and more transparent processes at the Corporate Affairs Commission (CAC) and land registries.
“These changes would immediately open up credit channels across the entire MSME value chain,” Joda asserted. He stressed that financial institutions must co-design rules with regulators to manage risk without intimidating small business owners with excessive paperwork.
From Lenders to Ecosystem Enablers
Paul Ehiagbonare, Chief Digital Officer at Accion MFB, explained that the seminar's focus was a national priority. He argued that microfinance institutions must evolve from being mere lenders to becoming embedded enablers within business ecosystems.
This involves using technology, strategic partnerships, and alternative credit-data models to close the financing gap. Ehiagbonare cited practical solutions like invoice-discounting models, which allow micro-enterprises to fulfil large orders without suffering through typical 45-day payment cycles.
The bank's leadership concluded that embracing these digital and value-chain-focused approaches is not just beneficial but essential for the sustainability and growth of Nigeria's vast MSME sector.
