Accion Microfinance Bank (MfB) has called for a shift to digital, data-driven and value-chain-based financing to expand access to capital for Nigeria’s micro, small and medium enterprises (MSMEs).
The call was made at the Financial Inclusion Seminar 2025, organised by Accion MfB under the theme “Unlocking MSME Value Chain to Drive Growth and Prosperity: The Evolving Role of Financial Institutions.” Experts at the event said traditional collateral-based lending no longer meets the needs of MSMEs, which contribute about 48 per cent of Nigeria’s GDP and employ over 84 per cent of the workforce.
Speaking at the seminar, Taiwo Joda, Accion MfB Managing Director and CEO, said lenders must assess MSMEs based on how they actually operate rather than on physical assets that many do not have. He noted that alternative data such as sales and cash-flow records, POS and mobile-money transactions, supplier and buyer payment history, inventory turnover, utility payments and online ratings provide a clearer picture of creditworthiness.
Joda explained that embedding financial services into MSME value chains allows banks to deliver loans, payments and insurance directly within marketplaces, supply networks and distribution channels, reducing paperwork and eliminating the need for physical branches. He added that Accion plans to launch a digital MSME finance product accessible via a web portal and mobile app, enabling businesses to apply for funding remotely. The platform will also feature a marketplace linking suppliers, manufacturers and retailers to support seamless transactions.
Paul Ehiagbonare, Chief Digital Officer of Accion MfB, said the focus on value-chain financing is critical to MSME survival and scale. He noted that models such as invoice discounting can help small businesses fulfil large orders without waiting for long payment cycles, while existing supplier-dealer relationships offer natural risk buffers for lenders.
Ehiagbonare added that Accion is leveraging alternative data, including telco and POS activity, mobility patterns and mobile-money usage, in partnership with providers such as MTN, to assess MSMEs that lack formal bank records.
According to the bank, the seminar underscored the need for financial institutions to evolve from lenders into ecosystem enablers, using technology, partnerships and data to close Nigeria’s MSME financing gap and build more resilient, inclusive business value chains.
