Relax loan conditions for growth of MSMEs, entrepreneur tells banks

Raji Olatunji, a tech entrepreneur has called on banks and lending institutions to ease the stringent conditions required for Micro, Medium, and Small Enterprises (MSMEs) to access loans.

According to Olatunji, relaxing these conditions would boost socio-economic development, reopen shuttered industries, and create new job opportunities.

Olatunji, founder of Plenitude Technology Limited in Ibadan, Oyo State, shared his experience with BusinessDay, highlighting the challenges faced by small businesses in accessing funds.

Olatunji, who praised Sterling Bank and Jaiz Bank for providing his company with working capital, which has been essential to its growth, noted that MSMEs face numerous challenges, including epileptic power supply, unfriendly Government policies, high fuel costs, and limited access to loans and facilities from banks.

Read also: Relaxing conditions for accessing N220bn MSMED

He emphasised the need for banks to reduce the collateral required for small businesses to access loans.

Olatunji’s company has implemented strategies to overcome these challenges, including providing regular training to staff and seeking technically competent personnel. He however advised aspiring entrepreneurs to remain focused and consistent in achieving their goals, despite the hurdles they may face.

The call to relax loan conditions for MSMEs comes as Nigeria seeks to promote economic growth and development through the support of small businesses. By easing access to funding, banks can play a crucial role in empowering entrepreneurs like Olatunji to drive innovation and job creation in the country.

“If the conditions are relaxed, it will serve as a boost to the socio-economic development of the country, as well as lead to the reopening of industries earlier shut due to lack of funds and create fresh employment opportunities”, he said.