NITDA Urges Financial Institutions to Improve Lending Access to SMEs
MALLAM Kashifu Inuwa Abdullahi, director general, National Information Technology Development Agency, NITDA, has called on financial institutions in the country to increase lending access to Small and Medium Enterprises especially Startups in the Financial Technology (FinTech) ecosystem in order to promote financial inclusiveness in the country.
Mallam Abdullahi disclosed this in a Webinar organised by FinTech Association of Nigeria with the theme: “COVID-19: Enabling Speedy Business and Economic Recovery Through Regulations.”
He stated that traditional banks’ lending process have long been a barrier to assessing finance for SMEs in Nigeria which has negatively impacting the operations of the SMEs, adding that the banks need to come up with innovative ideas to assist vulnerable SMEs in the era of COVID-19 that is plaguing the world.
He said, “The COVID-19 pandemic has disproportionately impacted SMEs around the world, Nigeria inclusive.
“Traditional bank lending process has long been a barrier to accessing finance for SMEs in Nigeria.”
He, however, informed that government is providing different types of interventions and palliatives but Financial Technology is not being employed optimally for disbursement.
Adding that, “our interventions are to help lead the tech startups from crisis to recovery as well as support them to navigate today’s challenging business landscape.”
While reiterating the promise of president Muhammadu Buhari’s administration to lift 100 million Nigeria out of poverty in 10 years, Mallam Abdullahi expressed optimism that government would support investment in startups to create jobs and future prosperity for all.
He explained that, NITDA as an Information Technology regulator in the country with twin mandates to regulate and develop the sector, had designed initiatives meant to provide a secure base for startup ecosystem with inclusion of FinTech startups.
He said, immediately the government pronounced the lockdown, NITDA constituted a 10-man committee named Tech4Covid with objectives to identify innovative solutions to address the pandemic; provide enabling policies and incentives to cushion the impact of the pandemic; and build massive digital skills to reskill the region to leverage technology in different sectors.
On funding for the innovative ideas of the startups, the NITDA DG recalled that the Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim Pantami has directed all parastatals under the supervision of the ministry to set up an Innovation Research Fund for the startups, and NITDA is equally working with Bank of Industry, BOI, to give consideration to I T startups in accessing funding.