Market Analysis

Market Bite Nigeria: Innovation Offers Key to the Broader MSME Finance Market

December 1, 2022

Private sector lending to micro, small and medium enterprises (MSMEs) in Nigeria is limited, even though there is considerable demand. This report from IFC shows that there is an unmet demand for credit by Nigerian MSMEs of approximately 13 trillion naira, equivalent to $32.2 billion. The findings are based on a survey of almost 1,000 MSMEs across the country in July 2021 and March 2022, conducted by IFC. The report puts forward that innovation and collaborative fintech frameworks offer the possibility to build and strengthen the fundamentals of an MSME finance business and to develop more advanced offerings and tools for financial institutions to serve MSMEs in a sustainable way.