Nigerian Startups Need Patient Capital Beyond Conventional Loans, Says Oyedele

Federal authorities have emphasized that expanding Nigerian enterprises need comprehensive institutional backing and patient capital rather than conventional loans alone to overcome persistent structural hurdles. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, explained that access to credit by itself cannot resolve the fundamental challenges faced by local entrepreneurs and growing companies.

Speaking in Abuja during the fourth edition of the Nigeria Sovereign Investment Authority Prize for Innovation, where seven startups shared awards valued at $277,000, the minister was represented by his Special Adviser on Finance and Investment, Marie Ukpere. He noted that while small and medium-sized enterprises sustain millions of livelihoods across the country, many struggle to expand due to inadequate financing, limited technical capacity, and a lack of broader institutional backing.

Oyedele highlighted that achieving Nigeria's broader economic aspirations relies heavily on transforming small businesses into thriving medium-sized operations and large international competitors. He pointed to existing institutional interventions such as the Development Bank of Nigeria and the National Credit Guarantee Company, which are designed to reduce lending risks and encourage financial institutions to extend credit to manufacturers and small businesses.

During the event, the managing director of the Nigeria Sovereign Investment Authority, Aminu Umar-Sadiq, noted that finalists emerged from thousands of applicants through rigorous screening processes. He explained that the initiative focuses heavily on healthcare, manufacturing, and food systems because of their immense capacity to generate employment, build vital skills, and improve overall national productivity.

Industry experts at the event also stressed the critical role of capital readiness and preparation for growing businesses. Stakeholders observed that equipping entrepreneurs with the right business networks, operational credibility, and strategic guidance remains just as important as direct financial injections for long-term commercial success.

Source reporting: Punch — 2026-10-26 00:03:01