Ayooluwa Oladimeji, the Acting Executive Director of Commercial Solutions at Zedvance, has asserted that the advancement of small and medium-scale enterprises (SMEs) across Nigeria is largely contingent upon their capacity to secure liquidity. He underscored that enhanced financial support is paramount for fostering business expansion and boosting overall economic productivity.
In an interview with ARISE News on Wednesday, Oladimeji identified the availability of finance as one of the most considerable obstacles faced by businesses in Nigeria, particularly within the SME segment.
He pointed out that the absence of sufficient liquidity prevents numerous business concepts and scaling initiatives from materializing, thereby limiting their potential impact on economic development.
"Nigeria’s SME growth depends on access to liquidity," Oladimeji stated, emphasizing that financial resources serve as the bedrock for enterprise development.
Oladimeji elaborated that Zedvance's strategic move into commercial lending was motivated by a deliberate effort to support businesses in their growth phases, building upon the company's extensive history in consumer lending.
He further explained that this transition was influenced by a confluence of factors including their established lending expertise, the emergence of new economic prospects, and the company's in-house capabilities in technological integration and risk management.
Over the last eighteen months, the firm has achieved notable success, distributing nearly N100 billion to businesses spanning various economic sectors.
Despite this accomplishment, Oladimeji noted that this figure represents a marginal portion of the overall demand, with Nigeria's SME financing deficit estimated to be between N75 trillion and N90 trillion.
Oladimeji highlighted the transformative influence of technology in improving the efficiency of lending processes, mentioning the application of tools like artificial intelligence for assessing creditworthiness and streamlining operational workflows.
He also stressed that financial technology (fintech) firms inject agility and adaptability into the financial services sector, offering customized solutions that are compatible with the cash flow cycles of businesses.
Beyond the realm of financing, he pinpointed key sectors poised for growth, including green mobility, agro-processing, and the digital services economy, identifying them as crucial areas for investment and expansion.
Oladimeji reiterated that addressing Nigeria’s SME financing deficit will necessitate continuous innovation and improved access to capital, reinforcing the indispensable role of liquidity in stimulating business growth and strengthening the national economy.
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