Fidelity Bank SME programme building requisite capacity to create Aliko Dangotes of tomorrow

Nigeria’s top lender bank, Fidelity Bank Plc, has ,avowedly ,  committed   itself to supporting  the growth and development  of the  small and medium enterprises(SME) businesses in Nigeria.  The bank’s  continued  to support the  SMEs is   because it recognises them as being critical agents of economic development and transformation in Nigeria and the world at large.

 “Indeed, our long-running support for the growth and development of small businesses in Nigeria stems from our recognition of SMEs as critical agents of economic development and transformation in Nigeria and the world at large,” said an official of the bank who does not want his name in the print.

While SMEs have continued to be of help  through greater utilisation of raw materials, employment generation, linkages with bigger industries, etc, they, however, continue to be held back from reaching their full potential by a number of internal and external challenges which include poor access to funding, and poor infrastructure among others.

Hence,  Fidelity Bank has developed a strong multifaceted SME banking platform, driven by its tailored, low cost transactions banking offerings backed by the requisite one-on-one and cluster focused advisory services and hand-holding support, and a low-cost, tailored funding from its balance sheet.This reality and the need to tackle it headlong has led  the bank  to deepen attention on the segment in recent years and institute enduring structures to help the sector build all-round capacity at little or no cost to them.

As part of this effort,  in the last six  years or more , the bank has been sponsoring a radio programme  called  Fidelity SME Forum LIVE, to educate the start-ups and non-start-up on the nitty-gritty of small businesses.  This radio programme holds every Tuesday of the week.

The Fidelity SME Forum is a weekly radio programme organised by  the bank to educate, inform, advise and inspire budding entrepreneurs in Nigeria with knowledge and expertise that will enable them build sustainable and successful businesses. The interactive radio programme features subject matter experts and model entrepreneurs as guests on a weekly basis to share their insight and unique success stories

This week, precisely, on February 15, another radio programme will hold to discuss important issues on SME. The focus of the programme is on the utilities of digital  technologies. Technology is already changing the educational system in Nigeria, influencing everything from how students learn to how teachers enhance their skills. It has also played a significant role in how administrators manage grades, maintain security, track payments, and follow up with guardians or parents.

Says  Fidelity Bank : “Osayi Izedonmwen, our next guest on the show, understands the enormous potential of digital technologies, having founded an EdTech start-up, Teesas, which now provides video classes and other digital educational materials in Nigeria.  During the Fidelity SME Forum LIVE on Radio as our guest on the show, Osayi Izedonmwen shares his profound insights and experiences on, “Enhancing Access to Education through Digital Technology”.

“Teesas, which was launched less than two months ago, has enjoyed a warm market acceptance, leading to the successful raising of $1.6 million in a pre-seed funding round. Izedonmwen plans to use the investment to expand into new markets, launch a marketplace that will link learners with tutors for private lessons, and expand the range of products in its portfolio.

“It sure promises to be an interesting session! Tell everyone you know to tune in to Inspiration FM 92.3, Lagos at 6:30am on Tuesday, February 15, 2022. There will also be a rebroadcast on Thursday, February 17, 2022, by 6:30pm.”

Fidelity Bank effort is informed by the strong belief that the SME sector is the backbone of major developed economies, as well as important contributors to employment, economic and export growth. In South Africa, this sector account for 91% of businesses, 60% of employment and contribute 52% of total Gross Domestic Product (GDP). In Nigeria, SMEs contribute 48% of national GDP, account for 96% of businesses and 84% of employment.

 Recent   studies by PricewaterhouseCoopers show that despite the significant contribution of SMEs to the Nigerian economy, challenges still persist that hinder the growth and development of the sector. According to the Nigeria Bureau of Statistics (NBS), SMEs in Nigeria have contributed about 48% of the national GDP in the last five years. With a total number of about 17.4 million, they account for about 50% of industrial jobs and nearly 90% of the manufacturing sector, in terms of number of enterprises.

Though significant growth has been achieved in the SME sector, there is still much to be done. According to an article on “developing Africa through effective, socially responsible investing”, “there still exists a ‘missing middle’, which finds it hard to access funds due to the category of funding they belong to.” Other challenges encountered by the sector include lack of skilled manpower, multiplicity of taxes, and high cost of doing business, among others.

 Last year, the management of   Fidelity Bank   reaffirmed  commitment to enhancing the productivity and prosperity of SMEs in the country by providing capacity building and advisory services, innovative funding options and other forms of relevant support that would significantly improve their overall contributions to national development.

The bank’s Managing Director/ CEO, Mrs. Nneka Onyeali-Ikpe  gave the assurance at the Fidelity SME National Capacity Building Webinar organised by the bank for entrepreneurs in Enugu State, in collaboration with the Enugu State Ministry of Trade and Commerce and the Enugu SME Centre; Small and Medium Enterprises Development Agency of Nigeria (SMEDAN); Nigeria Association of Small & Medium Enterprises (NASME) and Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA).

The webinar which will take place across the country on a state-by-state basis, is part of concerted efforts to assist entrepreneurs across all sectors of the Nigerian economy develop requisite capacity to unlock their full potentials and take their businesses to the next level of growth.

Onyeali-Ikpe said  insights into the bank’s unique approach to managing MSMEs, pointed out that SMEs which are businesses with less than N100million annual turnover contribute about 48 percent of national GDP, account for 96 percent of businesses and 84 percent of employment in Nigeria.

She noted that despite the significant contribution of SMEs to the Nigerian economy, challenges still persist that hinder the growth and development of the sector. Chief among these are funding, lack of infrastructure, poor management, low entrepreneurial skills, improper planning, poor digital skills, etc. The Fidelity CEO however noted that the webinar seeks to proffer appropriate solutions to these challenges in a very practicable manner.

During one of her  outings last year, Onyeali-Ikpe said, “We intend to build a centre for SMEs free legal services in the event of going into any contract.

“We have loans for everybody, and we would also drive financial inclusion through our agency banking. We have advanced in technology and are adding more products to our platform. We encourage our customers to key into our digital process.”

She said, “The bank is also executing fresh ideas to ensure continuous process improvement, reduce cost to serve, increase competitiveness, improve brand recognition and value, build new partnerships and relationships, drive turnover, and increase profitability.

“The bank’s digital transformation involves an end-to-end digitisation across all facets of the business. In line with this, the bank has launched a novel digital service — Pay Yourself — which revolutionises payday for salary earners and SMEs.”

Overall, as proof of our commitment, our MSME customer footprint as at date, is in excess of 800,000 customers across several sectors and the various geographical regions of the country,” he said. Interestingly, a lot of people are of the view that banking SMEs is a risky business.

 Banks are in business to take risks, but  Fidelity  Bank has taken a different approach to supporting SMEs. On account of this, the bank has set up  the Managed SME Division to provide one-on-one advisory, access to market for its customers, and to guide aspiring entrepreneurs that are just clueless about how to run a business.  The  goal is to build requisite capacity in order to create the Aliko Dangotes’ of tomorrow.