The huge Micro-Small and Medium Enterprise (MSME) financing gap that exists in Nigeria would soon be closed, with the announcement of an innovative virtual hackathon challenge titled: “MSME Finance…Breaking Barriers”, a collaboration between Enhancing Financial Innovation and Access (EFInA) and GIZ.
The event aims to address some of the major challenges preventing micro-enterprises from accessing formal credit in Nigeria.
Registration for the virtual program begins today, July 8, and ends August 1, and is open to innovative and creative adult individuals.
In a statement released in Lagos, EFInA Managing Director Owolabi Isaiah said, “We are delighted to present the Virtual Ideathon & Hackathon Challenge titled: MSME Finance…Breaking Barriers. Despite the proliferation of credit providers in Nigeria – both regulated and unregulated – the financing gap for MSMEs has widened due to several issues such as inability to meet requirements (financial records, collateral), manual/rigid credit reporting system, high default rate, manual KYC verification process, lack of financial management skills and lack of market linkages, among others. Therefore, it has become imperative to facilitate an inclusive financial system that transparently extends credit to MSMEs regardless of the size of their operations, categories and the availability of traditional collateral requirements to stimulate the economy, reduce poverty levels and provide employment opportunities.