The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in collaboration with Sterling Bank Ltd., has unveiled an initiative aimed at addressing the financial gaps faced by small businesses in Nigeria.
The Databanc loan, a five-billion-naira fund, was launched in Lagos on Monday under the theme: “Building with Data: Promoting Economic Growth through Data-Driven Insights.”
Databanc is designed as a single-digit interest loan specifically targeted at Nano, Micro, Small, and Medium Enterprises (NMSMEs) to facilitate easier access to necessary funds.
The initiative is expected to provide substantial local and tailored support for businesses at the smallest levels, aiding in market access and entrepreneurship drivers.
Bunmi Kole-Dawodu, the Lagos State Manager of SMEDAN, stated that the Databanc loan would not only provide financial support but also open access to markets and other critical factors needed to drive entrepreneurship.
The initiative aims to enhance Nigeria’s export potential and provide accurate data about nano enterprises, which is crucial for their growth and sustainability.
The platform is designed to address the long-standing complaints from SMEs about the difficulty in accessing financial interventions. It will provide accurate data on nano, micro, and small businesses in Nigeria, facilitating necessary business support.
Kole-Dawodu emphasized the importance of support from business membership organizations to encourage their members to register on the platform, promoting data-driven insights.
SMEDAN is committed to the ongoing development of small businesses and will continue to collaborate with partners, stakeholders, and business organizations to advance this cause.
Charles Odii, Director General of SMEDAN, stressed the critical role of data in making informed economic decisions to build the small business ecosystem.
He assured that SMEDAN would continue to bridge the gap between the government and small businesses.
On her part, Bolanle Tyson, Head of SME Products at Sterling Bank Ltd, detailed the loan specifics, explaining that Databanc provides funding ranging from N250,000 to N2,500,000 for up to one year.
She highlighted the formalized portal for accessing funds without human interface, ensuring efficiency and integrity in business data management.
”The Databanc platform, with its unique identifiers and seamless onboarding experience, aims to unlock the potential of small businesses by providing creative solutions to foster their growth and sustainability through the N5 billion loan program.
”This initiative marks a significant step towards empowering small businesses in Nigeria, offering them the financial support and resources needed to thrive in a competitive market,” she stated.
In a related development, the Enugu State government has taken a significant step towards fostering the growth and success of small businesses with the introduction of N1 Billion Matching Fund Programme.
The groundbreaking partnership with SMEDAN aims to empower local businesses, fueling their progress and contributing to economic vitality.
The state is initiating Conditional Cash Grants tailored for 5,000 MSMEs as part of this initiative.
