Nigeria’s small and medium-sized enterprises need more than access to finance to thrive, according to FCMB’s Senior Vice President and Divisional Head of Business Banking, George Ogbonnaya, who highlights infrastructure, skills and digital transformation as critical growth drivers, in this interview with OKECHUKWU NNODIM
Beyond financing, what additional support do Nigerian businesses need to scale sustainably?
Infrastructure remains one of the most significant challenges. Reliable electricity, efficient logistics networks, and strong digital infrastructure are critical for competitiveness. Energy is particularly important because of its direct impact on operating costs. This is one reason we have invested significantly in renewable energy financing. By helping businesses access alternative energy solutions, we can reduce costs and improve profitability.
Logistics is another major issue. The cost and complexity of moving goods within Africa remain significant barriers to trade and growth. Improving logistics infrastructure would have a substantial positive impact on businesses. Digital infrastructure is equally important. Technology has become a key driver of competitiveness, and businesses need affordable access to digital tools and services. Skills development is another area that requires attention. Entrepreneurs need management capabilities, leadership skills and specialised expertise to scale successfully. Many business owners begin as sole operators but eventually need to build systems, manage teams and implement growth strategies.
Capacity building plays a crucial role in facilitating that transition. Market access is also important. Businesses need support in reaching customers and expanding demand. Mechanisms that connect producers to larger markets can significantly enhance growth opportunities. Finally, simplifying regulatory processes would benefit SMEs considerably. Many small businesses operate with limited resources and cannot maintain dedicated compliance departments. Reducing administrative complexity would improve ease of doing business and allow entrepreneurs to focus more on growth.
Nigeria’s business environment has remained challenging, with high inflation, elevated interest rates and rising operating costs. How is FCMB helping businesses navigate these conditions?
Before answering that question directly, it is important to explain why FCMB does what it does. FCMB has a rich heritage as the first indigenous Nigerian bank. Historically, the institution played a significant role in Nigeria’s economic development, including supporting indigenous participation in the ownership of companies during the indigenisation era. That history continues to shape how we approach business today. At the heart of our operations is a commitment to fostering sustainable growth in the communities we serve. Our purpose goes beyond providing financial services. We are passionate about helping businesses become more competitive, grow into stronger enterprises and ultimately contribute to national development.
That philosophy influences how we support SMEs and other businesses, especially during difficult economic periods. Today, businesses are operating in a very challenging environment. Inflation remains high, interest rates are elevated, and the cost of production has increased significantly. The pressure on businesses is substantial. Energy costs, in particular, have become a major concern. Recently, the leadership of a small business association noted that energy expenses now account for approximately 60 per cent of operating costs for many SMEs, compared with around 40 per cent previously. When costs rise at that pace, businesses inevitably face significant pressure on profitability and sustainability.
At FCMB, one of our key strengths is our long-term relationship approach. We do not view our relationship with customers as transactional. We see ourselves as partners in their growth journey. That means that when economic shocks occur, we do not simply withdraw support. Instead, we work with customers to understand their challenges and identify practical ways to help them remain competitive. Nigeria has experienced several difficult economic periods over the years, including recessions and significant market disruptions. Through those periods, we continued to support businesses and adapt our offerings to meet evolving needs.
Are there other aspects you would wish to speak about?
Another important aspect of our strategy is recognising that every business is different. While many SMEs cite access to finance as their biggest challenge, we often see financing constraints as symptoms of deeper issues. Some businesses struggle to obtain loans because they lack the documentation required by traditional lending models. Others have viable operations but cannot meet certain formal requirements. For those businesses, we leverage alternative data and digital lending models to improve access to finance.
For another category of businesses, the issue is affordability. They may qualify for loans but find prevailing interest rates too expensive. To address that challenge, we actively seek funding from development finance institutions and international partners. These arrangements enable us to provide more affordable financing options to eligible businesses. We also make extensive use of risk-sharing mechanisms that allow us to support businesses that may not have sufficient collateral. Over the years, we have used these structures to provide financing to underserved SMEs that would otherwise have struggled to access credit. The key point is that our financing approach is not one-size-fits-all. We tailor solutions to the specific circumstances and needs of each customer.
Beyond financing, what other support does FCMB provide to SMEs?
Beyond financing, we focus strongly on digital enablement, business development, and capacity building. One of the realities of today’s business environment is that efficiency has become increasingly important. As costs continue to rise, businesses must find ways to improve productivity and optimise operations. To support this, we recently introduced FCMB Collect, a solution designed to help businesses manage collections, payments, and inventory from a single platform. The objective is to provide greater visibility into cash flow and improve operational efficiency. When businesses have better control over their cash flow and inventory, they can make more informed decisions and operate more competitively.
Capacity building is another area where we invest significantly. Every year, FCMB trains more than 4,500 SMEs through various programmes and initiatives. These programmes cover a wide range of areas, including financial management, digital marketing, business strategy, leadership, regulatory compliance and sector-specific challenges. We deliver training through multiple channels. Some programmes are conducted physically, while others are delivered online. We also organise workshops, masterclasses and specialised industry sessions.
We recognise that access to knowledge is often just as important as access to capital. Many businesses fail not because opportunities do not exist but because they lack the skills, networks or information needed to take advantage of those opportunities. That is why we remain committed to helping entrepreneurs develop the competencies required to build sustainable businesses. We also focus heavily on sectors with significant developmental impact, including agriculture, renewable energy, healthcare, education and women-owned businesses. These sectors play critical roles in economic growth and align closely with our mission of fostering sustainable development.
How long have you been involved in SME training and business development programmes?
Our commitment to SME training predates the COVID-19 pandemic. Before COVID-19, we regularly organised business masterclasses and capacity-building programmes under various initiatives. These programmes were designed to address emerging challenges affecting businesses. For instance, when significant changes were introduced in tax administration, we organised sessions that brought together experts and SMEs to discuss the implications and provide guidance.
We also organised training programmes focused on financing, business management and regulatory compliance. During the COVID-19 pandemic, we accelerated our digital engagement efforts through the launch of our Business Zone platform. Interestingly, the platform had already been developed before the pandemic. However, the crisis created an urgent need for businesses to access information and support remotely.
One of the first sessions held on the platform attracted more than 19,000 participants. That experience reinforced the importance of digital learning and demonstrated the strong demand for business support services. Since then, we have continued to invest in the platform. With support from a French development institution, we have expanded and upgraded Business Zone to provide richer content and a more seamless user experience. The upgraded platform is expected to be available across both Android and iOS devices, making it easier for entrepreneurs to access valuable resources from anywhere.
What are the major needs and evolving priorities you are seeing among SMEs and corporate customers today?
The needs of businesses continue to evolve in response to economic conditions and market trends. One of the most pressing needs remains access to affordable financing.
The current interest rate environment has increased the cost of borrowing, making affordability a major concern for many businesses.
Another significant need is operational efficiency. Businesses are looking for ways to manage costs more effectively, improve inventory control, optimise cash flow and strengthen treasury management. The emphasis on efficiency is understandable because rising costs have made waste reduction and productivity improvement essential for survival. We are also seeing increased demand for digital transformation. The competitive landscape has changed dramatically. Today, businesses are no longer competing solely with companies located within their immediate environment. Globalisation and technology have expanded competition beyond traditional geographical boundaries.
Consumers can now order products from international markets and receive deliveries without leaving their homes. This means local businesses must embrace technology and develop new capabilities to remain competitive. As a result, SMEs are investing more in digital marketing, e-commerce, and technology-enabled business models.
Another trend is the growing demand for knowledge and capacity building. Entrepreneurs are increasingly aware that success requires more than hard work. It requires continuous learning and adaptation. This is why participation in training programmes and business development initiatives has continued to increase. Ultimately, businesses today are looking for speed, convenience and trust. Customers want seamless experiences, efficient service delivery and financial partners that can support them effectively in a rapidly changing environment.
What tailored financial solutions do you think SMEs need, considering the harsh economic environment they operate in?
Our business banking strategy is built around understanding customer needs and designing solutions that address those needs. For new businesses, we offer incentives aimed at reducing startup costs and easing the burden associated with establishing operations. We also provide sector-specific solutions for industries such as agriculture, renewable energy, healthcare, education, and women-owned businesses. These sectors have unique characteristics and financing requirements, which is why specialised solutions are important.
Relationship management is another critical component of our strategy. Businesses consistently tell us that they want bankers who understand their industries and operational realities. As a result, we invest heavily in training our relationship managers to deepen their understanding of customer businesses. This enables them to provide more relevant advice and support. Our objective is not merely to provide banking services but to become trusted partners in our customers’ growth journeys.
How are you leveraging technology to improve the business banking experience?
Technology is transforming the banking industry, and we are leveraging it extensively to improve customer experiences. While internet and mobile banking have become standard offerings, we have gone beyond those basic services. Today, businesses can open accounts digitally and receive account numbers almost instantly. Business onboarding and Know Your Customer processes have been significantly digitised, reducing turnaround times and improving convenience. Technology has also enabled us to improve lending processes. We have implemented systems that support faster credit assessments and decision-making, allowing eligible customers to access financing more quickly.
Another area of focus is Banking-as-a-Service. Through this model, we provide infrastructure that enables fintech companies and innovators to build solutions that support businesses and expand financial access. Security remains a top priority. We have strengthened authentication processes through biometric technology, providing enhanced security while improving user convenience. Customers can complete transactions more securely without relying heavily on traditional authentication methods. We are also introducing solutions that integrate collections, payments, and inventory management into a single ecosystem.
Looking ahead, our vision is to create a seamless omnichannel banking experience. Customers should be able to start a transaction on one platform and complete it on another without interruption. Ultimately, our goal is to build a fully digital SME banking ecosystem that delivers convenience, efficiency, and reliability.
MSMEs are widely regarded as the backbone of Nigeria’s economy. Why do they remain a strategic priority?
There are several reasons. First, supporting MSMEs aligns directly with our purpose and heritage. Our commitment to helping businesses grow and contribute to national development naturally places SMEs at the centre of our strategy. Second, MSMEs play a critical role in Nigeria’s economy. They account for a substantial proportion of employment and contribute significantly to economic output. Various estimates suggest that MSMEs contribute between 46 and 50 per cent of Nigeria’s Gross Domestic Product. They also account for a large share of jobs across the country. Third, from a business perspective, the SME segment offers significant opportunities. It provides a broad and diversified customer base, reducing concentration risk. Unlike portfolios that depend heavily on a small number of large companies, SME portfolios benefit from greater diversification.
Another important factor is that SMEs remain one of the most underserved segments globally. That means there are still substantial opportunities to expand access to finance, technology, and business support services. The segment also offers strong customer loyalty and transaction volumes. Many SMEs conduct frequent transactions, creating opportunities for long-term engagement and value creation.
Finally, SMEs represent future growth. Today’s small businesses can become tomorrow’s medium-sized enterprises and eventually large corporations. Supporting them early creates opportunities for mutual growth over the long term.
What is your outlook for Nigeria’s business environment?
I would describe the outlook as cautiously optimistic. We are beginning to see signs of greater macroeconomic stability compared with the uncertainty experienced previously. Businesses can now plan with a higher degree of confidence because some of the volatility that characterised earlier periods has moderated. That said, challenges remain. Interest rates are still high, and operating costs continue to place pressure on businesses. Consumer purchasing power also remains constrained, which means companies must pay close attention to pricing and value delivery.
What we are seeing is a shift from crisis management to efficiency-driven competition. Businesses are increasingly focused on productivity, cost optimisation and operational excellence. Those that can operate efficiently and deliver value are likely to perform better in the current environment. While structural challenges persist, there are reasons for optimism, particularly for businesses that are adaptable and innovative.
Why is FCMB investing heavily in renewable energy?
Renewable energy is important for both economic and developmental reasons. We recently partnered with the Rural Electrification Agency to support the deployment of mini-grids aimed at expanding electricity access to underserved communities. Access to reliable energy can transform communities by improving productivity, supporting businesses, and creating economic opportunities. Many of these communities are located outside major urban centres, making decentralised energy solutions particularly valuable.
Renewable energy also supports financial inclusion and economic participation. When people have access to electricity, they can engage in productive activities, expand businesses and improve their livelihoods. For SMEs, the impact is even more direct. Energy costs have become one of the largest components of operating expenses. Helping businesses transition from expensive diesel-powered generation to more efficient renewable energy solutions can significantly improve profitability.
To support this transition, FCMB offers energy financing solutions that enable businesses to acquire renewable energy systems through structured repayment arrangements. These facilities are designed to make adoption more affordable while delivering immediate savings on energy costs. The result is lower operating expenses, improved competitiveness, and stronger business sustainability. Energy is fundamental to economic productivity, which is why renewable energy remains a strategic priority for us. Our commitment to the sector reflects both our business objectives and our broader goal of fostering sustainable growth in the communities we serve.
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