In Nigeria’s dynamic economic landscape, Small and Medium Enterprises (SMEs) are pivotal in driving growth, innovation, and job creation.
Despite their importance, SMEs often need help accessing financing, which can stifle their potential and impede national economic progress. As a professional with extensive experience in data finance, fintech, and product analytics, there are strategic data applications that can transform business outcomes.
The Challenge: SME Financing Gaps in Nigeria
SMEs in Nigeria contribute approximately 48% to the national GDP and account for 96% of businesses and 84% of employment. However, access to finance remains a critical barrier.
According to the Central Bank of Nigeria, the SME credit gap is estimated at around ₦617 billion. Traditional banking models often fail to accurately assess the creditworthiness of SMEs, leading to higher borrowing costs or outright denial of credit. This disconnect hinders the growth and sustainability of these vital businesses.
The Role of Predictive Analytics
Predictive analytics, which uses historical data to …