Nigeria’s small business sector continues to face a significant financing shortfall estimated at $32.3 billion, according to Ahmed Tunde Popoola, Managing Director and Chief Executive Officer of CRC Credit Bureau Limited.
Speaking at a collaborative lecture hosted by Kwara State University, Popoola emphasized that improving access to credit is essential to unlocking growth for micro, small, and medium enterprises across the country.
Delivering a lecture titled “Finance, Entrepreneurship, and the Infrastructure of Trust,” he explained that credit should be understood as a system that enables growth rather than just borrowing. He noted that while Nigeria has a growing financial sector, the effectiveness of lending institutions depends heavily on the strength of the country’s data ecosystem.
For many small businesses, limited access to finance remains a major constraint. Entrepreneurs often struggle to secure funding due to weak credit histories, lack of formal financial records, and minimal integration into structured financial systems.
Popoola highlighted the role of emerging technologies in addressing this gap, noting that tools such as open banking, artificial intelligence-driven credit scoring, and alternative data models are changing how lenders assess risk. These innovations are making it easier for businesses without traditional collateral to access funding.
He also introduced the concept of an “infrastructure of trust,” which includes identity systems like BVN and NIN, credit bureaus, payment platforms, and regulatory frameworks. According to him, the effectiveness of the credit market depends on how well these components work together to support transparency and reliability.
Despite ongoing government interventions aimed at improving access to finance, he noted that long-term progress will depend on building a sustainable, market-driven system supported by accurate and accessible data.
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Popoola added that credit reporting in Nigeria has improved significantly, with CRC Credit Bureau now maintaining credit profiles for over 60 million Nigerians. This progress has contributed to better risk assessment and a reduction in non-performing loans.
Also speaking at the event, Shaykh Luqman Jimoh, Vice Chancellor of Kwara State University, described access to finance as both an economic and social issue, emphasizing the need for stronger collaboration between academia and industry.
Similarly, Wahab Olasupo Egbewole of University of Ilorin noted that partnerships between universities and financial institutions are critical for preparing graduates to operate in a rapidly evolving digital economy.
The event also marked the activation of a partnership between CRC Credit Bureau and Kwara State University, aimed at using anonymised credit data to support research and policy development on access to finance.
For entrepreneurs, the message remains clear. Access to funding is increasingly tied to financial visibility. Maintaining proper records, using formal banking systems, and building a credible credit history are becoming essential steps for businesses seeking to grow and compete.
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Information provided by Edfrica is for awareness purposes only and does not constitute a guarantee or endorsement.
