Insights on Nigerian MSME Financing

Insights on Nigerian MSME Financing

February 21, 2023

Dear ,

Are you aware that majority of entrepreneurs surveyed in the “Bridging the Access to Finance Gap for Nigerian Entrepreneurs Report 2022”, cited personal savings and funds from family and friends as their main source of finance? According to the report, 74% of entrepreneurs raised finance to run their businesses through their own personal savings, followed by funds from family and friends (37%).  Equity finance and angel investment had the lowest shares of 3% each.

Among the institutional sources of finance, cooperative societies (43.1%) and microfinance banks (27%) were ranked high by entrepreneurs that were able to raise finance. Meanwhile, only 19% received finance from commercial banks. This trend was also experienced for female-led and youth-led businesses that were surveyed. To gain more insights, download the full report on Bridging the Access to Finance Gap for Nigerian Entrepreneurs here.  For questions, enquiries, and/or clarifications, please send an email to [email protected] Warm regards,The FATE Institute