Sterling Bank Plc and the Small & Medium Enterprises Development Agency of Nigeria (SMEDAN) have entered into a Memorandum of Understanding (MoU) to establish a comprehensive database of Small and Medium Scale Enterprises (SMEs) in Nigeria, creating the largest SME database in the country.
The collaboration aims to enhance intervention programs and provide customized solutions that contribute to the growth of SMEs in Nigeria.
During the signing ceremony held in Lagos, the Chief Executive Officer of Sterling Bank, Mr. Abubakar Suleiman, expressed his optimism about the partnership. He emphasized that collaborations driven by opportunities, rather than regulations, often yield positive outcomes. He viewed this collaboration as a promising venture, highlighting that external regulatory pressure did not compel their cooperation.
Recognizing the crucial role of data in economic development, Suleiman stated that the agreement marks the beginning of a journey towards a formalized economy, enabling effective government interventions when necessary.
Suleiman also stressed the importance of SMEs having access to capital based on their historical data. To achieve this, he emphasized the need to create an environment that motivates SMEs to self-report, even if it is solely to be eligible for SMEDAN services. Additionally, he highlighted that self-reporting is the initial step for small and medium businesses to become auditable institutions.
“Sterling Bank is committed to dedicating its resources to the success of the MoU and will advocate for government support of SMEs. The outcomes of this collaboration would benefit the entire banking industry, not just Sterling Bank,” he added.
Mr. Olawale Fasanya, the Director General of SMEDAN, expressed his appreciation for the bank’s initiative and highlighted the significant value of the MoU to SMEDAN’s operations. Fasanya emphasized the importance of data in their activities, noting the ongoing online registration of SMEs. Despite registering approximately 3.8 million SMEs through this initiative, there is still a need for data cleaning. Fasanya emphasized that accurate data availability would enable SMEDAN to connect SMEs operating within the same market.
Mustapha Otaru, Chief Product Officer at Sterling Bank, described the bank’s approach to managing SMEs as an ecosystem and emphasized the importance of collaboration with SMEDAN at the federal government level. He acknowledged that progress is impossible without such partnerships. Otaru added that in addition to providing access to finance, Sterling Bank aims to nurture SMEs and support their growth from micro to corporate levels.
