In a significant move to bolster Nigeria's economic backbone, First Bank of Nigeria Limited, operating under FBN Holdings Plc, has revealed it extended more than N200 billion in credit to Micro, Small, and Medium Enterprises (MSMEs) throughout the year 2024.
Addressing the Core Challenge of SME Funding
The announcement was made by the Head of SME Banking at FirstBank, Abiodun Famuyiwa, during his address at the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) 2025 National MSME Conference in Lagos. Famuyiwa identified poor funding as the most formidable obstacle confronting small businesses in the country.
He emphasized that the bank's massive financial intervention was a direct response to this critical funding gap, designed to stimulate growth and sustainability within the vital sector. The conference, themed 'Grow Nigeria: Building a Future of Innovation, Resilience and Prosperity,' provided a fitting platform for this revelation.
A Deep Dive into the N200 Billion Disbursement
Famuyiwa provided a detailed breakdown of the colossal sum, offering transparency into how the funds were allocated. He confidently disclosed that a substantial N100 billion was channeled to businesses operating across diverse formal markets.
Furthermore, N70 billion was specifically dedicated to empowering petty traders, a segment often excluded from traditional banking services. Additional disbursements were made to businesses in other sectors, culminating in the remarkable total of over N200 billion injected into the small business ecosystem within a single year.
Beyond Money: A Holistic Support System
What makes this initiative particularly noteworthy, according to Famuyiwa, is the bank's approach to lending. A significant portion of these funds was advanced without requiring any collateral from the business owners.
"We just look at the way they do their businesses and determine what they can actually afford," he explained, highlighting a risk-assessment model focused on business viability rather than physical assets.
This responsible lending strategy is coupled with ongoing support. The bank actively monitors fund usage and provides extensive non-financial aid. "We've organised different webinars and seminars for SMEs on how they can scale their businesses because growing businesses is not just about money alone," Famuyiwa stated, underscoring the importance of financial literacy and strategic business management for long-term success.
By combining substantial, accessible capital with crucial knowledge resources, FirstBank is positioning itself as a key partner in building a more resilient and prosperous future for Nigeria's MSMEs.
