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Sterling Bank has entered into an agreement with the Small & Medium Enterprises Development Agency of Nigeria (SMEDAN) to create a comprehensive database of Small and Medium Scale Enterprises (SMEs) in Nigeria.
In a statement, Sterling Bank highlighted that this initiative will enable scaling of intervention programs and provide tailored solutions that contribute significantly to the growth of SMEs. The signing ceremony, held in Lagos, saw Mr. Abubakar Suleiman, the Chief Executive Officer of Sterling Bank, expressing his optimism about the collaboration.
Suleiman emphasized the positive outcomes that genuine collaborations driven by opportunity can achieve, rather than being solely driven by regulation. He regarded this partnership as a promising venture, with no external regulatory pressure compelling their cooperation.
The CEO stressed the significance of the Memorandum of Understanding (MoU) and recognized the critical role of data in economic development. He stated that this agreement marks the beginning of a journey toward a formalized economy, enabling effective government intervention when required.
Suleiman also highlighted the importance of SMEs having access to capital based on their historical data. To achieve this, he emphasized the need to create an environment that motivates SMEs to self-report, even if it is simply to be eligible for SMEDAN services. Furthermore, Suleiman underscored that self-reporting is the initial step for small and medium businesses to become auditable institutions.
Sterling Bank reaffirmed its commitment to dedicate its resources to the success of the MoU and advocate for government support of SMEs. Suleiman noted that the outcomes of this collaboration would benefit the entire banking industry, not just Sterling Bank.
Mr. Olawale Fasanya, the Director General of SMEDAN, expressed his appreciation for the bank’s initiative and emphasized the immense value of the MoU to SMEDAN’s operations. Fasanya stressed the criticality of data to their activities, referring to their recent online registration of SMEs.
Despite registering approximately 3.8 million SMEs through this initiative, data cleaning remains necessary. Fasanya emphasized that accurate data availability would enable SMEDAN to connect SMEs operating within the same market.
Mustapha Otaru, the Chief Product Officer at Sterling Bank, described the bank’s approach to managing SMEs as an ecosystem and emphasized the importance of collaboration with SMEDAN. Otaru acknowledged that progress is impossible without such partnerships.
Otaru added 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.
According to Otaru, Sterling Bank’s products are strategically designed to align with its HEART (Health, Education, Agriculture, Renewable Energy, and Transportation) strategy, adopted in 2018 to focus investments on key sectors of the economy.
Bolanle Tyson, the Head of SME Products at Sterling Bank, emphasized 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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