Sterling Bank, has 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 Nigeria.
This is to help in scaling intervention programs and providing tailored solutions that truly contribute to the growth of SMEs.
Chief Executive Officer of Sterling Bank, Abubakar Suleiman who regarded the partnership as a promising venture, stated that no external regulatory pressure compelled their cooperation.
“Genuine collaborations, driven by opportunity rather than regulation, often yield positive outcomes”, he said.
Suleiman stresses the critical role of data in economic development and asserted that the agreement marks the beginning of a journey towards a formalised economy, enabling the government to intervene effectively when necessary.
He also emphasised the importance of access to capital as this creates 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.
Olawale Fasanya, Director General of SMEDAN, optimistic about the initiative, 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. Fasanya emphasized that the availability of accurate data 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 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 bank achieves this through innovative solutions such as its common facility for fashion entrepreneurs and special bundled offerings. Sterling Bank’s products, according to Otaru, are strategically designed to align with its HEART (Health, Education, Agriculture, Renewable Energy, and Transportation) strategy, which the bank adopted in 2018 to focus its investments on key sectors of the economy.
Bolanle Tyson, the Head of SME Products at Sterling Bank, 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.
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