Enhancing Financial Innovation and Access (EFInA) has partnered with GIZ to bridge the MSME financing gap existing in Nigeria through a virtual hackathon challenge themed, ‘MSME Finance…Breaking Barriers’.
The Nigerian MSME sector plays a huge role in the economy, contributing to 46.3 per cent of the National GDP, and equally accounting for 87.9 per cent of employment.
According to the organisers, the potential of the MSME sector is yet to be maximized because of several challenges some of which the hackathon is expected to address.
Speaking on the hackathon, the Chief Executive Officer, EFInA, Owolabi Isaiah, said he is excited to introduce the virtual hackathon challenge.
In his words: “Despite the proliferation of credit providers in Nigeria – both regulated and non-regulated – the financing gap for MSMEs has widened due to several issues like inability to fulfill 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 seamlessly avails credit to MSMEs irrespective of their size of operations, category and availability of traditional collateral requirements to boost the economy, reduce poverty levels, and provide job opportunities.”