Innovative Digital Solution Introduced to Address Financing Gap for MSMEs

Fiducia, an advanced digital Supply Chain Financing (SCF) marketplace, has been launched to tackle the persistent issue of limited credit access for Nigeria’s Micro, Small, and Medium Enterprises (MSMEs).

The estimated financing gap for these businesses stands at a staggering N617.3 billion annually. Fiducia serves as a comprehensive solution and marketplace that brings together three key participants – Buyers, Sellers, and Financiers – on a digital platform, facilitating the trade of eligible receivables and various other forms of supply chain financing.

Through this innovative financing platform, SMEs can expedite cash flow by discounting their invoices, allowing them to access funds, establish creditworthiness, and strengthen overall supply chain sustainability.

During the official launch of Fiducia in Lagos, Mrs. Adaobi Oni-Egboma, Senior Associate of Digital Regulations at Stears, emphasized that Fintech companies and emerging firms are paving the way for MSMEs to leave their digital footprints, thus creating new lending opportunities for banks to collaborate as capital providers. Oni-Egboma further highlighted that SCF is rapidly emerging as a viable alternative financing model for MSMEs, effectively bridging the financing gaps prevalent in developing countries.

Addressing the audience in her welcome address, Ms. Bunmi Lawson, Chairperson for Fiducia, emphasized the evolving global financial landscape and the evolving expectations and demands of businesses. Lawson acknowledged that the SCF market in Nigeria remains largely untapped, considering the substantial number of MSMEs in the country and the detrimental impact of delayed payments from larger corporations. She expressed Fiducia’s commitment to empowering Nigerian businesses, enabling them to thrive and succeed.

READ MORE: Governors Wike, Makinde, and Ibori Rally Behind President Tinubu’s Subsidy Removal Decision

Adding his perspective, Aigboje Aig-Imoukhueda, Chairman of Coronation Group, highlighted the banking industry’s failure to address the credit challenges faced by MSMEs. He stressed the importance of finding effective solutions to overcome these challenges and provide the necessary support for the growth and prosperity of MSMEs.