Small and Medium‑sized Enterprises (SMEs) will only scale, sustainably, if Nigeria confronts structural constraints around power, skills, and access to finance according to experts at the Nigeria Business Summit 2026, during a session titled ‘The SME Economy: Advancing Trends and Opportunities’.

 

The session, which  brought together perspectives from business operators, policymakers, and SME development institutions, provided the opportunity to examine why many enterprises remain trapped in survival mode and what must change to unlock growth at scale.

 

Speaking from the front line, Managing Director of Ojay’s International, Mr. Innocent Orji Egwuonwu said operating conditions remain deeply challenging for Nigerian SMEs, particularly those in manufacturing, with access to finance and power constituting  the two biggest constraints.

 

“Interest rates of over 30 per cent make it very difficult for SMEs to survive, and collateral requirements are often unrealistic for young businesses.  Power costs alone can wipe out margins. Diesel is now about ₦1,820 per litre. In my business, we spend over ₦1 million every week just generating power,” he said, adding that such costs directly limit expansion and job creation.

 

Beyond energy, Egwuonwu highlighted the burden of multiple taxation, calling for clearer and harmonised tax assessments to help SMEs plan and operate with certainty.

 

From a policy and institutional perspective, Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN),  Charles Odii identified formalisation as the single biggest structural gap holding SMEs back.

 

“There are about 40 million MSMEs in Nigeria, but many are not captured in any system. If a business is not registered, it is invisible, and when you are invisible, you cannot access finance, incentives or structured support,” he added.

 

Odii explained that many SMEs cite access to finance as their main challenge, but that formalisation often determines whether financing becomes possible in the first place. SMEDAN, he said, is addressing this through cluster‑based models that reduce individual collateral requirements and provide zero‑interest.

 

Providing a state‑level policy lens, Mr. Christian Udechukwu, Commissioner for Trade and Industry, Anambra State, argued that SME growth accelerates, when governments actively remove cost pressures.

 

“In Anambra, we focus on putting money back in the pockets of SMEs,” he said; pointing to free education, targeted tax relief, improved road infrastructure, and procurement policies that prioritise locally produced goods,” he stated.

 

Udechukwu added that partnerships with financial institutions, development finance institutions, and agencies like SMEDAN allow SMEs to access funding of up to ₦10 million without traditional collateral; using cooperative and guarantee‑based structures.

 

“These interventions are not just about finance. They are about creating an environment where SMEs can think beyond survival and begin to scale,” he added.