The Chairperson of the Nigerian Association of Small and Medium Enterprises (NASME), Delta State Chapter, Judith Nwachukwu, has called for stronger monitoring mechanisms, improved financial literacy, and greater stakeholder involvement to ensure government interventions effectively support small and medium enterprises (SMEs).
Speaking on Trade FM’s Breakfast Business Briefing,Nwachukwu said while federal and state governments had introduced several loan schemes to support MSMEs, the impact remained limited compared to the number of businesses requiring assistance.
She noted that through partnerships with the Bank of Industry (BOI) and the Niger Delta Chamber of Commerce, her organisation had helped more than 40 entrepreneurs in Delta State access government-backed loans, but stressed that much more needed to be done.
According to her, MSMEs remain the backbone of Nigeria’s economy, but many businesses are yet to benefit from intervention programmes due to challenges such as poor awareness, lack of business structure, and limited financial literacy.
“Compared to the number of MSMEs available in the country and the impact made, I would say 30 per cent have been impacted while 70 per cent still have a long way to go,” she said.
Nwachukwu urged government agencies to collaborate more closely with Business Membership Organisations (BMOs), including NASME and chambers of commerce, to reach entrepreneurs at the grassroots level and educate them about available opportunities.
She identified lack of proper business registration, poor record keeping, inadequate mentorship, and limited understanding of financial management as some of the major barriers preventing entrepreneurs from accessing and effectively using loans.
The NASME chairperson also cautioned entrepreneurs against misusing intervention funds, stressing that beneficiaries must operate genuine businesses capable of generating revenue and repaying loans.
She cited an instance where a beneficiary of a N5 million government intervention fund allegedly lacked the business structure presented during the application process, questioning how such funds would be repaid.
Nwachukwu maintained that while loan application processes could be simplified, entrepreneurs must meet basic requirements, including having registered businesses, functional bank accounts, and proper financial records.
Beyond funding, she advocated for increased investment in capacity building, mentorship, bookkeeping training, customer service skills, and technology adoption.
“Money does not grow on trees. It grows on systems and organised business outfits,” she said, adding that providing funds without preparing entrepreneurs would amount to wasted resources.
She encouraged government and financial institutions to work with Business Development Support Persons (BDSPs) to train and mentor MSMEs, especially those operating at the grassroots level.
On whether government-backed loans were reaching rural entrepreneurs, Nwachukwu said more businesses in urban areas appeared to benefit from the schemes, calling for independent monitoring to track the actual distribution and impact of funds.
She also stressed the need for government to support sector-specific interventions, with clear monitoring indicators to measure outcomes in areas such as agriculture, fashion, and other industries.
Speaking on the role of technology, Nwachukwu said digital skills had become essential for business survival and urged government to expand technology training programmes for MSMEs, particularly those unable to afford such opportunities.
She further advised policymakers to involve MSMEs in designing intervention programmes, work closely with local governments, remove unnecessary barriers such as restrictive age limits, and give more attention to women entrepreneurs.
“When you empower a woman, you empower the family,” she said, calling for more deliberate efforts to improve women’s access to business financing.
Nwachukwu recommended the establishment of independent monitoring bodies to assess the long-term impact of SME interventions, including business growth, job creation, loan repayment, and sustainability, rather than focusing only on the number of loans disbursed.
