Ernest Azudialu-Obiejesi, the Group Managing Director of Nestoil, has voiced strong concerns about the detrimental effects of high interest rates and strict collateral requirements on the growth of Small and Medium Enterprises (SMEs) in Nigeria. Addressing attendees at the Chartered Institute of Directors (CIoD) Annual Young Directors Forum, he highlighted that these financial barriers prevent many SMEs from securing essential funding, ultimately hindering their development and the broader economy.
With SMEs constituting over 90% of Nigerian businesses, Azudialu-Obiejesi emphasized their vital role in job creation and economic opportunity. He urged regulators, financial institutions, and SMEs to collaborate in developing policies that foster a more supportive business climate. Drawing from his own journey in building Nestoil from a modest startup, he underscored the significance of resilience and strategic funding.
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To enhance the growth potential of SMEs, he proposed the establishment of inclusive financial ecosystems, featuring initiatives such as financial literacy programs, mentorship, and robust public-private partnerships. Alhaji Tijjani M. Borodo, President of CIoD, reinforced these ideas, stressing the importance of mentorship for empowering young business leaders to overcome funding obstacles and thrive in a challenging economic landscape.
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