Nestoil GMD calls for partnerships to tackle SMEs funding gap

Ernest Azudialu-Obiejesi, group managing director of Nestoil Group, has called for strategic collaboration among regulators, financial institutions, and small and medium enterprises (SMEs) to create effective solutions that will empower SMEs and enhance their contributions to the national economy.

Azudialu-Obiejesi who gave an address at the Chartered Institute of Directors (CIoD) Annual Young Directors Forum (YDF), said that a resilient SME sector is vital for sustainable economic growth.

He urged government bodies to implement supportive policies that foster an enabling business environment while calling on financial institutions to recognise that punitive interest rates and excessive collateral demands can stifle emerging businesses during their formative years.

“Over 90 percent of business operations in Nigeria consist of SMEs, which provide employment and opportunities for countless Nigerians. However, a lack of accessible funding stifles their growth and hinders our economy’s full potential,” he said.

Azudialu-Obiejesi noted that these challenges not only limit individual businesses but also diminish the nation’s economic potential. “SMEs are the vital ‘wood’ that fuels our economic ‘kitchen,’ bringing warmth, sustenance, and opportunity to our people,” he said.

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Drawing from his own experience in building Nestoil from humble beginnings in 1991, he shared insights into overcoming initial funding challenges.

“Starting with limited resources, we relied on personal savings and support from friends and family while navigating institutional scepticism toward our sector. This journey has taught us resilience, innovation, and the importance of strategic funding.”

To empower SMEs effectively, he called for the establishment of inclusive financial ecosystems that incorporate financial literacy initiatives, mentorship programs, SME funds, and robust public-private collaborations. “We must create an environment where entrepreneurs can thrive,” he asserted.

In support of this vision, Tijjani Borodo, president and chairman of the Governing Council of CIoD, echoed the need for mentorship in fostering young business leaders who can navigate funding challenges and other pressing business issues.