Nigeria’s SMEs and Why Fidelity Bank Is Emerging as Their Most Strategic Growth Partner

By Aderonke Oluwadare

Nigeria’s micro, small and medium sized enterprises remain central to the country’s economic growth, employment and household incomes.

According to the NBS and SMEDAN MSME 2021 survey, as cited in PwC Nigeria’s MSME Survey 2024, MSMEs account for 96.9 per cent of businesses, 87.9 per cent of employment, 46.32 per cent of gross domestic product and 6.21 per cent of exports.

These figures show why the health of Nigerian SMEs should matter to policymakers, financial institutions and investors. PwC’s report confirms the numbers and identifies MSMEs as a critical driver of Nigeria’s economic fortunes.

But the operating environment remains difficult. Entrepreneurs continue to deal with high input costs, exchange rate volatility, infrastructure gaps and weak consumer purchasing power.

PwC’s MSME Survey 2024, which covered 557 operators across 13 sectors and 29 states, listed inadequate access to finance, unreliable electricity and multiple taxation as top constraints to business growth. The report also found that 69 per cent of surveyed businesses had not received government grants in the previous 24 months.

For many SMEs, electricity shortages and fuel costs force them to spend scarce working capital on basic operations instead of expansion.

A sector adapting under pressure and the need for the right banking partner

Nigerian SMEs remain entrepreneurial and increasingly digital, but many are stuck between the need to improve efficiency and limited capacity to invest.

Informal bookkeeping weakens credit applications. Fragmented payment and inventory systems hide true cash flow. Expensive short term funding makes growth hard to sustain.

The financing gap is therefore about more than money. It is also about business structure, financial records, managerial knowledge, digital capacity and access to markets.

This is where Fidelity Bank is creating real difference. The bank has built its SME strategy around a broader understanding that goes beyond conventional lending. Its approach combines affordable banking, appropriate financing, digital tools, advisory support and market access to help entrepreneurs become more structured, bankable and resilient.

How Fidelity Bank is reducing the cost of business banking

Transaction costs can erode profits for growing enterprises, especially those with high volume transactions. Fidelity Bank addresses this through the Fidelity Premium Business Account.

FPBA Variant 1 requires a minimum opening and operating balance of 100,000 naira. The account offers up to 300 million naira in account maintenance charge free monthly debit turnover, provided the customer maintains the prescribed operating balance, stays within the turnover threshold and does not operate an overdraft facility on the account.

The 300 million naira threshold is an increase from the 100 million naira limit in earlier product documentation. An April 2025 communication from Fidelity Bank’s SME Product Development Division confirmed the revised threshold as an updated feature of FPBA Variant 1.

FPBA Variant 2 requires customers to maintain an operating balance of 1 million naira and places no cap on monthly debit turnover. Account maintenance charges apply when the balance falls below the required threshold or when an overdraft operates on the account. The product also provides access to electronic banking, loan facilities and business advisory services.

For eligible businesses, these structures reduce avoidable transaction costs and leave more funds for inventory, salaries, equipment and expansion. The two variants also recognize that businesses operate at different levels.

Finance aligned with real business needs

Access to finance remains a major constraint for Nigerian MSMEs. Funding works best when its purpose, repayment structure and duration match the cash flow cycle of the business.

Fidelity Bank’s SME financing is structured to address these differences through business financing solutions, low-cost accounts, advisory services and capacity building. This combination is important in an environment where expensive short-term financing can weaken a growing enterprise.

Fidelity Bank has also participated in the disbursement of government backed MSME intervention funds and has supported qualified businesses through its branch network, digital platforms and relationship management structure.

Building digital and managerial capacity for SMEs

Many SMEs struggle to secure financing because their records do not show a clear picture of revenue, expenses, inventory and cash flow.

Fidelity Bank is addressing this through programmes that support digital adoption and operational efficiency. The Fidelity SME Empowerment Programme was officially launched on 23 July 2025 at the Fidelity SME Hub in Gbagada, Lagos. The initiative was designed to equip 100 growth ready SMEs with ERPRev enabled point of sale systems and business support tools at no cost.

Beneficiaries received business software, receipt printers, barcode scanners, inventory data support, financial and bookkeeping training, branding assistance and six months of post installation monitoring. The programme also included masterclasses and networking opportunities.

Better records strengthen financial transparency, support planning and help entrepreneurs become ready for appropriate financing.

Knowledge, visibility and market access through Fidelity Bank

Access to knowledge and networks can be as valuable as access to finance. Entrepreneurs need practical guidance on pricing, financial management, product quality, digital sales and exports.

Fidelity Bank supports this through the Fidelity SME Hub, its SME Masterclass Series, the Fidelity SME Forum and the Quarterly Business Forum.

The Fidelity SME Hub in Gbagada gives entrepreneurs access to training facilities, meeting rooms, networking spaces, advisory support and creative studios for content production. The Quarterly Business Forum connects founders with business leaders and policymakers. The SME Masterclass Series provides practical guidance on pricing, product quality, online sales and export readiness.

Fidelity Bank also uses its radio and digital platforms to share business knowledge. Eligible FPBA customers may receive opportunities to feature on the Fidelity SME Radio Programme, subject to terms and selection.

A recognised commitment to SME development in Nigeria

Fidelity Bank’s support for small businesses covers finance, advisory, capacity building, digital enablement and market access.

In 2026, Fidelity Bank received the Development Bank of Nigeria Service Ambassadors Award for the highest impact on MSMEs accessing credit for the first time. The recognition reflects the bank’s work in onboarding previously unbanked or credit excluded businesses. It followed the Development Bank of Nigeria Innovation Award received by the bank in 2025 for its contribution to innovative financial products for MSMEs.

Fidelity Bank also supports exporters through trade and market access programmes, connecting entrepreneurs with knowledge, networks and markets for sustainable expansion.

From resilience to sustainable scale

No bank can resolve every structural challenge facing Nigerian SMEs. Reliable electricity, stable policies and efficient logistics remain essential.

But banks can play a defining role by reducing transaction costs, financing productive activity, supporting digital adoption and connecting businesses with knowledge and markets.

Entrepreneurs should evaluate banking relationships beyond just an account or loan. Monthly turnover, average balances, financing purpose and operational needs should guide product selection.

Fidelity Bank’s model provides a practical example. Its combination of transactional savings, appropriate financing, advisory support, capacity building, digital tools and market access shows how banking can respond to the practical needs of Nigerian SMEs.

Nigeria’s economic future remains tied to the performance of its small businesses. By supporting entrepreneurs with finance, knowledge, technology and market access, Fidelity Bank continues to strengthen its position as a leading partner for Nigeria’s SME sector.