How easy is it now to do business in Nigeria?

In Nigeria, small and medium-sized enterprises (SMEs) have long faced numerous challenges in engaging with government agencies and navigating the complex business environment. To address these issues, the Nigerian government has been organizing one-stop shops and SME clinics in various states across the country as part of its ease of doing business plan. These initiatives aim to provide SMEs with direct access to government agencies, minimize travel times, and offer solutions to their problems. Ayo Olojede, Head of Emerging Business at Diamond Bank, recently joined CNBC Africa to discuss how the SME clinics are tackling the issues faced by small businesses in Nigeria. During the interview, Olojede highlighted the key focus areas of the SME clinics, including challenges related to business operations such as people management, finances, sales strategies, and overall business management. The clinics provide SMEs with one-on-one consultation sessions with consultants to diagnose issues and offer tailored solutions to help them succeed. One of the major hurdles facing SMEs in Nigeria is access to finance, which is essential for business growth and development. Olojede emphasized the importance of business registration as a critical step in accessing finance, noting the government's initiative to reduce business registration fees to 5000 Naira as a commendable effort to simplify the process for entrepreneurs. In addition to the reduced registration fees, the Nigerian government has implemented various programs to support SMEs, including a microcredit scheme offering interest-free loans, the AgSMEs program with a capacity-building component, and the establishment of the Development Bank of Nigeria to provide long-term funding options for small businesses. Olojede acknowledged the role of the Development Bank in partnering with commercial banks to facilitate access to affordable capital for SMEs, though he noted that the program is still a work-in-progress. While progress has been made in enhancing access to finance for SMEs, Olojede emphasized the importance of sustainable interventions to support ongoing business growth. He highlighted the need for a supportive environment for SMEs to formalize their businesses, develop business plans, and adhere to strategic execution and discipline. While Nigeria is still evolving in terms of creating an enabling environment for small businesses, Olojede praised the efforts of the government and the positive impact of the SME clinics in improving the business landscape in several states. Despite the ongoing challenges and the need for further improvements, Olojede remains optimistic about the future of SMEs in Nigeria, citing the progress made in certain states as a model for others to follow. By working collaboratively with the government and other support entities, SMEs can continue to enhance their business prospects and contribute to the overall economic development of the country.