Nigeria’s plan to build a $1tn economy will depend partly on the ability of small businesses to expand into larger enterprises, Finance Minister Taiwo Oyedele has said, calling for investment support that goes beyond conventional bank lending.
Oyedele said Nigerian businesses needed patient capital, experienced investment partners and access to networks that could help them enter new markets and expand operations.
He spoke on Saturday in Abuja at the fourth edition of the Nigeria Sovereign Investment Authority (NSIA) Prize for Innovation, where seven startups received awards worth a combined $277,000.
Represented by his Special Adviser on Finance and Investment, Marie Ukpere, the minister said access to credit alone would not resolve the challenges preventing promising businesses from growing.
“We also recognise that high-potential businesses often require more than conventional credit. They need patient capital, experienced investment partners, and networks that can help them enter new markets and achieve scale,” he said.
According to Oyedele, small and medium-sized enterprises sustain millions of livelihoods and provide employment across Nigeria, but many remain constrained by limited financing, inadequate skills and insufficient institutional support.
“Too many promising businesses struggle to grow because they cannot access financing, skills, or institutional support they need to succeed,” he added.
He identified the Development Bank of Nigeria and the National Credit Guarantee Company as institutions supporting access to financing, noting that credit guarantees could reduce lending risks and encourage financial institutions to extend credit to SMEs and manufacturers.
Oyedele also cited the $618m Investment in Digital and Creative Enterprises programme as an intervention providing young entrepreneurs with financing, skills development and business support.
The minister’s position highlights a broader challenge for Nigeria’s economic growth strategy: enabling businesses to move beyond small-scale operations, increase productivity and create jobs. While loans can provide working capital, businesses seeking to expand may also require long-term investment, technical expertise and access to larger markets.
At the event, NSIA Managing Director and Chief Executive Officer Aminu Umar-Sadiq said 12 finalists were selected from more than 6,000 applications after five stages of screening and business development activities.
He said the innovation prize formed part of the authority’s strategy to support entrepreneurs alongside its infrastructure investments.
This year’s competition focused on healthcare, manufacturing and food systems, sectors Umar-Sadiq identified as having potential to generate employment, develop skills and improve productivity.
The 12 finalists are also scheduled to participate in a six-week learning programme at Lagos Business School, with strategic partners expected to provide further opportunities for financing and business development.
National Coordinator of the Presidential Unlocking Healthcare Value Chain Initiative, Abdu Mukhtar, identified healthcare as another area with significant investment potential, estimating Nigeria’s addressable healthcare market at $20bn.
“We estimate that across the healthcare value chain, the addressable market is about $20bn. There are already about 250,000 SMEs in healthcare, according to the IFC,” he said.
Mukhtar identified pharmaceutical manufacturing, medical devices, clinical research, telemedicine and healthcare logistics as areas where businesses could pursue investment opportunities.
Meanwhile, Affiong Williams, founder and chief executive of ReelFruit and lead judge of the competition, said her company had raised more than $7m over 14 years. She attributed its ability to attract investment to preparation, credibility and resilience.
Cascador Founder and Director Dave DeLucia also stressed the importance of preparing businesses to attract investors.
“Capital readiness is just as important or more than the capital itself,” he said, adding that entrepreneurs operating outside Lagos often needed stronger institutional support.
Come Again Foods emerged as the overall winner of the competition, receiving a combined $105,000 prize. Protein Kapital placed second with $70,000, while InstantRad came third with $50,000.
