Unlocking MSME potential: $32.2bn funding gap threatens Nigeria’s economic growth, Asagun

Stanley Ihedigbo

Finance expert and Chief Executive Officer (CEO), Seyi Asagun, has sounded the alarm on the untapped potential of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), citing a staggering $32.2 billion funding gap that is hindering their growth and undermining the country’s economic resilience.

According to Asagun, MSMEs account for over 96% of businesses in Nigeria, contribute nearly 50% to the GDP, and provide 84% of national employment. Despite this, he noted, the sector remains largely underfunded and under-supported.

“The numbers show that MSMEs are the backbone of the Nigerian economy,” Asagun said. “But the lack of financing, poor infrastructure, and informal operations prevent them from reaching their full potential.”

He emphasized the need for increased access to credit, policy reforms that reduce the cost and complexity of business registration, and stronger infrastructure to support small businesses. Formalization, he added, is key to enabling MSMEs to access funding, government contracts, and export opportunities.

Asagun also pointed to technology as a critical driver of growth for MSMEs, noting that digital platforms like Paystack and Flutterwave have created new pathways for businesses to scale. However, he warned that many small businesses in rural areas still lack the digital skills and infrastructure to benefit.

Citing success stories like Farmcrowdy and LifeBank, Asagun said that with the right support, Nigerian MSMEs could become globally competitive and drive long-term economic growth.

He called for greater collaboration between government, private sector players, and development organizations to build a sustainable support ecosystem. “We need more than capital—we need mentorship, infrastructure, digital inclusion, and policy alignment,” he said.

Asagun concluded by urging policymakers to prioritize MSMEs in national development plans, stressing that unlocking their potential is critical to building a stronger, more resilient Nigerian economy.