CIBN: MSMEs Struggle with High Costs Despite Progress

The Chartered Institute of Bankers of Nigeria (CIBN) reported that micro, small, and medium-sized enterprises (MSMEs) are still hindered by high operating costs despite macroeconomic improvements under the current Federal Government. CIBN President and Chairman of Council, Dr. Dele Alabi, made this statement on Tuesday during the 19th Annual Banking and Finance Conference in Abuja.

He referenced data from the National Credit Guarantee Company, indicating that approximately 80% of MSMEs in Nigeria lack access to formal credit due to stringent collateral requirements. Alabi noted that Nigeria is affected by global economic shocks, including volatile crude oil prices and rising costs of essential goods.

He called for a focus on moving stability from national balance sheets to business and household budgets. President Bola Tinubu, represented by Finance Minister Taiwo Oyedele, acknowledged the government's ongoing reforms to address structural weaknesses.

Central Bank of Nigeria Governor Yemi Cardoso, through Deputy Governor Philip Ikeazor, emphasized the need for a multi-layered approach to mitigate economic shocks.