Lagos urges microfinance banks to boost SME financing

The Lagos State Commissioner for Physical Planning and Urban Development, Olumide Oluyinka, has urged microfinance banks to strengthen support for small and medium-sized enterprises, startups and low-income earners to drive entrepreneurship and economic growth.

Oluyinka made the call at the 10th anniversary celebration of Pecantrust Microfinance Bank in Lagos, where he said microfinance institutions should focus on their core mandate rather than competing with commercial banks.

He noted that Nigeria produces more than two million graduates annually, while available jobs are insufficient to absorb them, making entrepreneurship an increasingly important source of employment.

“There is an average of over two million graduates annually, with fewer organisations to absorb them,” he said, adding that microfinance banks have a critical role to play in expanding access to finance for startups and small businesses.

The commissioner commended Pecantrust Microfinance Bank for its commitment to supporting entrepreneurs and promoting financial inclusion through lending to growing businesses.

Speaking at the event, the bank’s founder, Mopejuola Atungbayila, said the institution had disbursed more than N30bn in loans over the past decade to support businesses and individuals.

She said the bank had maintained operational stability throughout its 10 years of existence, recording no major regulatory sanctions, theft incidents or loss of life.

To mark its anniversary, Atungbayila unveiled three new products, including an upgraded mobile application, a redesigned corporate website and Kyros, a business support initiative designed to help entrepreneurs build sustainable enterprises.

She explained that Kyros is built around a Funding, Access and Mentoring strategy aimed at bridging the gap between access to finance and effective business management by connecting entrepreneurs with experienced mentors.

According to her, many business owners secure loans without the managerial skills needed to sustain their enterprises, making mentorship an essential complement to financing.

Also speaking, a member of the bank’s board of directors, Taiwo Oshinusi, said Kyros would boost entrepreneurs’ confidence and improve business success by combining funding with mentorship.

He expressed confidence that the bank would continue to grow, with the long-term ambition of transitioning from a microfinance institution into a commercial bank.