By Juliet Ezeh
Micro, Small and Medium Enterprises (MSMEs) in Nigeria continue to grapple with limited access to finance despite ongoing economic reforms, underscoring persistent structural weaknesses within the country’s small business ecosystem.
This concern came to the forefront at the 47th Kaduna International Trade Fair, where The Alternative Bank intensified efforts to bridge the financing gap by deploying more than 300 free Point-of-Sale (POS) terminals to small businesses operating across trade, retail and service clusters.
While macroeconomic reforms have sought to stabilise the broader economy, industry stakeholders argue that policy direction alone is insufficient without deep-rooted financial integration of small businesses into formal systems.
Representing the Executive Director, Commercial and Institutional Banking South and Central, Garba Mohammed, the Head of Corporate Social Investment, Solomon Okonkwo, emphasised that true economic reform must translate into operational efficiency at the grassroots level.
“Reforms may set direction, but they do not automatically deliver outcomes. Real impact begins when MSMEs are formalised, transactions become traceable, and access to finance becomes seamless,” he stated during the event at the Kaduna International Trade Fair Complex.
Nigeria’s MSME sector remains the backbone of the economy, accounting for over 96 per cent of businesses and employing more than 80 per cent of the workforce. However, limited digital adoption, cash-based transactions, delayed payments and weak credit documentation continue to restrict their ability to secure formal financing, particularly in Northern Nigeria.
The bank’s intervention targets a critical bottleneck: digital transaction infrastructure. By providing POS devices at no cost, it aims to help businesses transition from informal cash-heavy operations to traceable payment systems capable of generating verifiable transaction histories.
Financial experts note that without digital payment records, many small businesses struggle to demonstrate turnover and cash flow stability, making banks hesitant to extend credit facilities. Integrating MSMEs into structured financial ecosystems could significantly improve their creditworthiness and unlock access to capital.
Beneficiaries of the initiative were immediately onboarded into digital transaction systems during the trade fair, enabling them to reduce cash-handling risks, improve operational efficiency and build financial data profiles necessary for future loan applications.
The Alternative Bank indicated that the free POS deployment will extend beyond the trade fair, with eligible MSMEs able to access the service through its branches in Kaduna and across the country.
According to the bank, strengthening payment infrastructure is central to expanding financial inclusion and supporting real-sector growth through non-interest financial solutions tailored to entrepreneurs.
The institution also commended the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, alongside the Kaduna State Government, for sustaining platforms that promote enterprise development and regional commerce.
Analysts say such targeted interventions could play a pivotal role in narrowing Nigeria’s MSME financing gap if scaled effectively across other commercial hubs.
As Nigeria seeks sustainable economic growth, experts argue that empowering small businesses with digital tools and structured financial access may prove more impactful than policy reforms alone.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.