The Bank of Industry has taken a decisive step to address the alarming failure rate of Nigerian small businesses with the introduction of a comprehensive structured model called "Business Clinic." This innovative program aims to transform the landscape for Micro, Small and Medium Enterprises that manage to survive beyond their first five years of operation.
Addressing Nigeria's Business Survival Crisis
During the official launch event titled 'Thrive Summit: Driving Growth Through Innovation and Financial Empowerment,' Dr Obaro Osah, the Divisional Head of Business Development at BOI, revealed startling statistics about business survival in Nigeria. MSMEs constitute 96% of all businesses in Nigeria, employing 84% of the workforce and contributing 40% to the national GDP. Despite this significant economic footprint, the survival rates paint a concerning picture.
According to data from the National Bureau of Statistics and Small and Medium Enterprises Development Agency of Nigeria, only 20% of Nigerian businesses remain operational by their fifth year. The breakdown shows 60% fail before reaching their second year, 40% survive to year three, and merely 10% make it to year four.
Comprehensive Support for Sustainable Growth
Dr Osah identified multiple challenges contributing to this high failure rate, including inadequate skills, weak governance structures, poor record-keeping practices, limited market access, high interest rates, and weak value-chain integration. Additional obstacles include poor digital visibility, collateral gaps, documentation issues, and low financial literacy among business owners.
The Business Clinic represents a core component of BOI's 2025–2027 implementation strategy to expand non-financial services nationwide. Dr Isa Omagu, Chief Strategy & Development Officer at BOI, explained that the program serves as a strategic platform designed to bridge critical capability gaps that typically limit MSME growth and sustainability.
Practical Solutions for Business Transformation
The clinic focuses on making MSMEs more prepared, resilient and growth-ready by offering practical advisory services across multiple business domains. These include financial management, taxation compliance, digital tools adoption, strategic planning, budgeting, bookkeeping, and inventory management systems.
Dr Omagu emphasized the program's ambitious targets: shifting 80% of local enterprise funding toward infrastructure and priority sectors while developing a pipeline of bankable projects to reach 24,000 MSMEs by 2027. The initiative will also help businesses develop tailored fundraising plans to secure sector-specific funding and improve borrowing terms with financial partners.
Mr Rotimi Akinde, Executive Director of Corporate Finance, Sustainability & Investments at BOI, described the clinic as representing a shared commitment to building a stronger and more resilient business ecosystem in Nigeria. The program will provide structured, multi-dimensional support across finance, operations, marketing, compliance, governance, technology, and human resources development.
