Nigeria’s micro, small and medium-sized enterprises remain critical to employment and economic activity but continue to face financing, electricity, infrastructure and consumer-demand pressures that threaten their ability to scale.
Data from the NBS and SMEDAN MSME 2021 survey, cited in PwC Nigeria’s MSME Survey 2024, show that MSMEs account for 96.9 per cent of businesses, 87.9 per cent of employment, 46.32 per cent of gross domestic product and 6.21 per cent of exports.
The figures underline the importance of the sector to Nigeria’s economic prospects even as operators contend with elevated input costs, exchange-rate volatility, unreliable electricity and pressure on consumer purchasing power.
PwC’s survey, which covered 557 operators across 13 sectors and 29 states, identified inadequate access to finance, unreliable electricity and multiple taxation among the major constraints to business growth. It also found that 69 per cent of surveyed businesses had not received government grants in the preceding 24 months.
For many businesses, electricity shortages and rising fuel costs further reduce working capital available for inventory, equipment and expansion.
Beyond the availability of funding, SMEs also face challenges linked to financial records, digital systems, business management and access to markets, making some businesses less prepared to secure and effectively deploy formal financing.
The challenges have increased the need for financial institutions to provide support beyond conventional lending by combining transactions, financing, digital tools, advisory services, capacity building and market access.
Fidelity Bank has developed its SME strategy around such an approach, providing businesses with financial products alongside advisory, digital and capacity-building support.
One of its products, the Fidelity Premium Business Account (FPBA), offers different structures based on business transaction volumes.
FPBA Variant 1 requires a minimum opening and operating balance of ₦100,000 and provides up to ₦300 million in monthly debit turnover without account maintenance charges, subject to the applicable operating balance and turnover conditions and the absence of an overdraft facility.
The ₦300 million threshold was increased from ₦100 million under earlier product documentation, with an April 2025 communication from the bank’s SME Product Development Division confirming the revised limit.
FPBA Variant 2 requires a ₦1 million operating balance and has no monthly debit turnover cap, although account maintenance charges apply when the required balance is not maintained or an overdraft facility operates on the account.
The products also provide access to electronic banking, loan facilities and business advisory services.
The bank has also focused on helping businesses improve their internal systems, particularly in financial management and record keeping.
In July 2025, Fidelity launched its SME Empowerment Programme at the Fidelity SME Hub in Gbagada, Lagos, targeting 100 growth-ready SMEs with ERPRev-enabled point-of-sale systems and business support tools at no cost to beneficiaries.
Participants received business software, receipt printers, barcode scanners, inventory data support, financial and bookkeeping training, branding assistance and six months of post-installation monitoring.
The initiative was designed to help businesses improve operational efficiency and record keeping, which can strengthen financial transparency and support better business planning.
Fidelity has also used its SME Hub, SME Masterclass Series, Fidelity SME Forum and Quarterly Business Forum to provide entrepreneurs with access to training, advisory support, networking and business information.
The Fidelity SME Hub provides training facilities, meeting rooms, networking spaces, advisory support and creative studios, while the bank’s business forums bring entrepreneurs together with business leaders, policymakers and industry experts.
The bank also supports exporters and businesses seeking international opportunities through trade and market-access initiatives.
Its interventions have received external recognition, including the Development Bank of Nigeria Service Ambassadors Award in 2026 for the highest impact on MSMEs accessing credit for the first time. The recognition followed the DBN Innovation Award received by Fidelity Bank in 2025 for its contribution to innovative financial products and services for MSMEs.
However, the challenges confronting Nigerian SMEs extend beyond what financial institutions can address. Reliable electricity, stable policies, efficient logistics and a supportive regulatory environment remain important to the sector’s ability to grow sustainably.
For businesses, the changing environment also makes the choice of financial partner increasingly important, with factors such as transaction volumes, average balances, financing needs, repayment capacity and operational requirements influencing the suitability of different banking products.
With MSMEs accounting for the overwhelming majority of businesses and a significant share of employment and economic output, improving their access to finance, technology, knowledge and markets remains central to strengthening Nigeria’s broader economic base.