The Managing Director of Mutual Trust Microfinance Bank, Josh Oyebisi, has emphasized that Small and Medium-scale Enterprises (SMEs) in Nigeria require improved access to liquidity to survive and expand.
The statement highlights the critical role of financing in driving business sustainability and national economic growth.
Josh Oyebisi on Liquidity as Backbone of SMEs
According to Oyebisi, access to liquidity remains one of the most important drivers of SME survival, expansion, and productivity in Nigeria’s challenging business environment.
He noted that:
- Many SMEs struggle due to limited access to credit
- Business expansion is often constrained by financing gaps
- Liquidity determines how quickly businesses can scale operations
He stressed that without adequate financial support, many viable businesses remain stagnant despite strong potential.
Financing Gap Slowing Down SMEs
Oyebisi explained that Nigeria’s SME sector continues to face a significant financing gap, which limits job creation and economic output.
Key challenges include:
- High cost of borrowing
- Limited access to structured credit systems
- Risk-averse lending environment
He emphasized that bridging this gap is essential for unlocking economic growth and supporting entrepreneurship across sectors.
Role of Microfinance Institutions in Providing Liquidity for SMEs
The Mutual Trust Microfinance Bank MD highlighted the importance of microfinance institutions in addressing liquidity challenges faced by SMEs.
He noted that such institutions:
- Provide tailored financial products for small businesses
- Support informal and underserved sectors
- Help bridge the gap between traditional banks and SMEs
Oyebisi added that innovation in financial services is key to improving access to credit for small businesses.
Technology and Financial Inclusion
He further stressed that technology-driven lending models are helping to improve financial inclusion in Nigeria.
According to him:
- Digital tools can improve credit assessment
- Data-driven lending reduces risk and inefficiency
- Fintech partnerships can expand SME financing reach
He called for stronger adoption of innovation to enhance lending efficiency and broaden access to capital.
Economic Impact of SME Financing
Oyebisi noted that SMEs remain a critical part of Nigeria’s economy, contributing significantly to employment and GDP.
Improved liquidity, he said, would:
- Boost job creation
- Strengthen local production
- Reduce dependence on imports
- Increase national productivity
He emphasized that supporting SMEs is essential for long-term economic stability.
Oyebisi Calls for Institutional Support for SMEs
The banking executive urged policymakers and financial institutions to collaborate in strengthening SME financing frameworks.
He called for:
- Improved credit policies
- Lower lending barriers
- Stronger public-private partnerships
Oyebisi maintained that a supportive financial ecosystem is necessary for sustainable SME development.
Conclusion
These remarks by Josh Oyebisi reinforce the growing consensus that access to liquidity remains a defining factor in SME success in Nigeria.
As financial institutions and policymakers seek solutions, improved funding mechanisms are expected to play a key role in unlocking the full potential of the SME sector and driving economic growth.
