MSMEs Need Affordable Credit to Thrive, Says Minister

Samuel Mobolaji

The minister of Industry, Trade, and Investment, Doris Anite said, the Micro, Small, and Medium Enterprises (MSMEs) need affordable credit to thrive, hence, calling for necessary financing and resources to enable these businesses to play their crucial role in the food value chain.

Speaking at the event themed ‘Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,’ Anite emphasised the vital role that MSMEs play in ensuring food security across the country.

She noted that, MSMEs represent over 90 per cent of Nigerian businesses, contributing significantly to employment, economic growth, and income generation.

“MSMEs are at the heart of food production and distribution. From smallholder farmers to food processors and distributors, these enterprises are deeply embedded in the food value chain. By supporting them, we are investing in food security at the grassroots level—at a time when food shortages could worsen,” Anite said.

Anite stressed that, empowering smallholder farmers and agribusinesses through targeted financing would enhance agricultural productivity, reduce post-harvest losses, and streamline food distribution. In the context of food insecurity, MSMEs in agriculture have the potential to revolutionize local food systems, she added.

The minister underscored the importance of financial inclusion as a key driver for unlocking the full potential of MSMEs. “Without access to affordable credit, savings, and investment opportunities, these enterprises cannot expand, improve their technology, or create jobs,” she said. Anite expressed optimism about new financing initiatives being developed by the Bank of Industry and other partners to provide much-needed capital for small businesses in agriculture.

She further highlighted the role of sustainable agricultural practices in combating the negative effects of climate change on food security, noting that, ‘by investing in MSMEs, we not only increase productivity but also create a more resilient agricultural sector capable of withstanding climate challenges.’

Anite called for a collaborative effort from the government, development partners, and the private sector to build a robust financial system that caters to MSMEs. We need microfinance schemes, loan guarantees, and public-private partnerships that can de-risk investments in these enterprises, she said.

In her address, Anite also pointed to the potential of digital financial solutions in transforming MSMEs, especially in rural areas. “Technology, such as mobile banking, digital payment platforms, and blockchain for transparent supply chains, can provide more inclusive financial services for small businesses,” she said. These innovations, she argued, would help MSMEs access the funding they need to expand, improve efficiency, and compete in both local and global markets.

Anite encouraged stakeholders to work closely together to implement initiatives and policies that would boost MSME participation in ventures aimed at improving food security. “It’s pivotal that we ensure our MSMEs in agriculture receive the necessary financing, and I’m excited about the initiatives by the Bank of Industry and development partners today,” she stated.