Sterling Bank has recently signed an agreement with the Small & Medium Enterprises Development Agency of Nigeria (SMEDAN) to establish a comprehensive database of Small and Medium Scale Enterprises (SMEs) in the country.
This will help in scaling intervention programmes and providing tailored solutions that truly contribute to the growth of SMEs.
The signing ceremony took place in Lagos, where the chief executive officer of Sterling Bank, Mr. Abubakar Suleiman, expressed his optimism about the collaboration.
He emphasised that genuine collaborations, driven by opportunity rather than regulation, often yield positive outcomes. He regarded this partnership as one of those promising ventures, highlighting that no external regulatory pressure compelled their cooperation.
Suleiman stressed the MoU’s significance while noting the critical role of data in economic development. He asserted that the agreement marks the beginning of a journey towards a formalised economy, enabling the government to intervene effectively when necessary.
Suleiman also emphasised the importance of SMEs having access to capital based on their historical data. In order to do this, he stressed the importance of developing an atmosphere that motivates SMEs to self-report, even if it is just to be eligible for SMEDAN services.
Furthermore, Suleiman emphasised that self-reporting is the initial step for small and medium businesses to become auditable institutions, saying that the outcomes of this collaboration would benefit the entire banking industry, not just Sterling Bank.
Director-general of SMEDAN, Mr Olawale Fasanya expressed his appreciation for the bank’s initiative and highlighted the MoU’s immense value to SMEDAN’s operations.
Fasanya stressed the criticality of data to their activities, citing their recent online registration of SMEs. Despite registering approximately 3.8 million SMEs through this initiative, the data still requires cleaning.
He emphasised that the availability of accurate data would enable SMEDAN to connect SMEs operating within the same market.
Chief product officer at Sterling Bank, Mustapha Otaru described the bank’s approach to managing SMEs as an ecosystem and emphasised the federal government’s importance of collaboration with SMEDAN.
He acknowledged that progress is impossible without such partnerships. Otaru said that in addition to providing access to finance, Sterling Bank aims to nurture SMEs and support their growth from micro to corporate levels.
The head of SME Products at Sterling Bank, Bolanle Tyson underscored the integral role of SMEs in economic growth. She expressed her enthusiasm for the partnership with SMEDAN, envisioning a lasting collaboration that leverages combined resources to drive economic growth.
