Why Separating Business and Personal Finances is Good for Business

Why Separating Business and Personal Finances is Good for Business

As a business owner, it is important you don’t take your finances lightly. Most business owners make the mistake of mixing up their business and personal finances thereby unable to differentiate their business and personal expenditures. 

A study by the U.S Bank as highlighted by the Hartford Small Biz Ahead stated that 82% of businesses fail due to cash flow mismanagement.

If you’re the type that combines your business and personal cash flow, your business is fast heading to early bankruptcy. To save your business from this doom, the best approach is to separate your finances.

In this article, I will share the reasons why separating your business and personal finances is good for your business.

But first, let’s dig from the basics.

What Is The Difference Between Business Finance And Personal Finance?

Business finance is the fund you used in the strategic and operational running of your business. It’s the amount you’re raising and managing in the areas of planning, control operations, and your financial structure while personal finance covers managing your money, savings and investment. It also comprises your budgeting, banking, insurance, etc.

That said, it is also important you consider your business as an entity that is capable of surviving on its own. In a way that it has, its own accounts, investment, budgeting, etc.  

Excerpt: Understanding Financial Literacy with Money Africa

Why You Should Separate Your Business and Personal Finances

Separating your business and personal finances is important in many ways, here are 7 of them;

1.  It helps save time and money

It is important you let your business account to sort your business expenditures and your personal account does the same. 

This will help you to better track your business expenses and help you or your accountant to record your cash flow in an organized form. This act is necessary for accessible fund analysis and management. 

When you have your accounts all organized, you’ll save time and money for sorting your finances, and when your business grows to the stage that you hire an accountant, the job will be less stressful for him.

Saving time and money will mean that you are able to invest your energy in other business-productive activities.

2.  It helps achieve financial stability

Having a business comes with its own risk. You can’t be sure about when you’ll attain the break-even point despite investing diligent works. You only keep your hopes high while being consistent with the process.

So when your business downtime hits, separating your business and personal finances will help you spot the tsunami and immediately adjust your expenditures.  This difference will guide you whether to reinforce your business with your personal finances or let the business help itself. 

And when you seek funding or financial support, only a business account can stand in for you, else every investor will believe you’re using the money for something else. 

3.  It makes auditing easy

Every government utilizes business audits to evaluate the viability of a business and its likely economic benefits. They do this because it is important to ascertain that the business complies with the standard of doing business in the state. 

If your business and personal accounts are jumbled together, your business expenses will be difficult to scan through. And that will create a wrong perception of you as a business owner. 

However, when you have your finances as well as supporting documents are intact, your auditing process becomes easier and your tax returns and financial reports are well examined.

4.  It reduces your business tax rate

Having clean and easy-to-understand financial records could help you reduce your tax rate. This is possible because your auditing process will be simpler and the auditor will be able to spot your financial model.

That way, your business won’t mistakenly pay for what your personal maintenance which may include rents, transportations, and other business expenses.

5.  Ease the borrowing process of business credit

Many businesses survive on loans and credits. They access these when they need to execute a project or want to stay afloat during hard times. 

But obtaining business credit isn’t child’s play. Your financials must be solid and well-articulated, if not, the bank will disregard your proposal.

The agency or bank needs to be sure that your business can survive without your money. So having a separate account makes it easier for the agencies to give you loans. They can easily visualize your business sustainability and how you’ve managed money in the past years.

That trust currency will enable you to access the actual capital to grow your business.

6.  It enhances your professional identity

Customers and investors do not want to conduct business with companies that are treated as hobbies. They want to work with you when you take your business seriously. They want to see how professional you are and they want a clear belief that you and your business operate as different entities.

If you don’t have separate accounts for your business and personal expenses, it will tell on your business. The investors will see the business as mainly a play, and they won’t toy their money with it.

Besides establishing your professional identity, it positions your business as a respected entity that clients and investors can work and associate with.

7.  It prevents your business from bankruptcy

Ultimately, separating your business and personal finances prevents your business from bankruptcy. You will enjoy the ease of accessing funds, and business support. 

Aside from that, it also guides the way you dip your hands into the business account. This is true because you’ll clearly identify when you’re crossing the business-personal account line. And save you from likely debt. 


Now that you understand the importance of separating business and personal accounts, you should test your financial literacy, and have a good way to earn legal protection. 

Even your employees will respect the money flow, as all money transfers will be made according to specific protocols, including salary, dividends, and other distributions, rather than in an arbitrary fashion.

The Enugu SME Agency has created some videos on financial literacy for business owners that you can access here and here.

Subscribe to the Enugu SME Agency YouTube channel to get instant notification when the new videos are updated.

Stock Exchange

How to trade Stocks in Nigeria? A beginners’ guide

The trend of stocks trade has been steadily picking up throughout the world since the advent of electronic trading in 1970.

READ ALSO: Access Bank: Race for Continental Expansion

In the past decade, there has been increased participation of the millennials in the Stock market through online trading apps like Robinhood and E-Trade which has given boost to trading figures.

Nigeria too has seen growing interest in online trading with both millennials and older stock traders using local trading platforms.

But it has been noticed that many new traders generally tend to ignore the basics and risk factors related to trading while trying to book significant profits in turn they end up losing money. To make better profits, it is important to understand the details of the stock market and guidelines related to stock trading.

Below is our complete guide for the beginners to start stock trading in Nigeria.

What are Stocks or Shares?

A stock or share represents the ownership of the company or corporation. Owning shares of any company means that the shareholder owns a part of the company’s or corporation’s asset and earnings.

All the shares that are held by external investors of a company are called outstanding shares. Suppose if a company has 500,000 outstanding shares, then owning 50,000 shares means owning 10% of the stakes in the company.

Any company or corporation that exists in the world is either public or private. A private company is generally owned by a few individuals who can be founders, management, or private investors. A public company is a company in which common people or general public can own stakes besides the company promotors or founders – by buying a portion of shares offered in an initial public offering or through

Stock exchange.
For example, Aliko Dangote owns shares of Dangote Group, Elon Musk owns shares of Tesla. In simple terms, if you wish to own a part of any company, you will buy its shares.

The value of these shares keeps changing due to the performance of the company and many other factors. The frequent buying and selling of shares with an aim to book profit is called as stock trading. 
How Does Stock Trading Work?

The act of buying and selling of shares from stock exchange with expectations to book profit is called stock trading while accumulating the stocks for a long term is called stock investing. Traders who generally buy and sell the stocks on the same day are known as day traders.

A Stock exchange is a secondary market where all major shares of public companies are traded.

Exchange matches the potential buyers and sellers of shares of listed companies on the exchange. This means that if you buy shares of any company, you are buying from other shareholders who want to sell through the stock exchange.

For example – Tesla, Microsoft, Alphabet, Guaranty Trust Bank Plc are traded publicly on stock markets and investors can buy & sell them on exchange.

Only Public Companies are allowed to trade publicly on a stock exchange that means outside investors or general public can invest in them through stock market. This is a way for companies to raise capital for business expansion or raise initial funding in case of IPO. Every new company has to register itself through Initial Public Offering (IPO) on an exchange.

Investors normally earn income from company’s profits as dividends or by speculation on share value as day trading or value investing in the stock exchange.

Individuals can buy and sell shares of any listed company at varying prices from the stock market.

Companies are not allowed to take part in stock trading but they can buy back their own shares or issue more stocks.



Access Bank: Race for Continental Expansion

Access Bank Plc has intensified its cross-border expansion in order to take advantage of opportunities in the African Continental Free Trade Area, which has been described as a potential game-changer for the continent, writes Obinna Chima

READ ALSO: Growing real estate investment, input cost increase cement price

Inline with its expansion drive, Access Bank Plc last week entered into a definitive and binding agreement with ABC Holdings Limited to acquire 78.15 per cent shareholding in the African Banking Corporation of Botswana Limited (BancABC Botswana).

The transaction, which is subject to regulatory approvals and customary conditions precedent, is expected to close before the end of this quarter.

ABC Holdings is a subsidiary of London Stock Exchange listed group – Atlas Mara Limited.

The Nigerian bank disclosed this in a statement signed by its Company Secretary, Sunday Ekwochi.

Bostwana is renowned for its quality sovereign credit rating and stability. Access Bank’s market entry is expected to further solidify its strategy as, “a strong banking partner in key verticals across retail and corporate banking, including especially supporting trade in payments across southern Africa and Sub-Saharan Africa more broadly.”

Commenting on the deal, the Group Managing Director/Chief Executive Officer, Access Bank, Herbert Wigwe, said: “We remain committed to a disciplined and thoughtful expansion strategy in Africa, which we believe will create strong, sustainable returns for our shareholders and stakeholders at large, over the medium and long-term.

“The establishment of Access Bank through this acquisition in the Republic of Botswana will position the bank to deliver a more complete set of banking solutions to its clients active in and across the SADC and COMESA regions.

“This transaction complements our recent strategic growth acquisitions in South Africa, Zambia and Mozambique. We are building a bank of the future that Africans across Africa and the world would be proud of and look forward to welcoming the employees, customers and other stakeholders of BancABC Botswana to Access Bank.”

BancABC Botswana is the fifth largest bank in Botswana and is a very well-capitalised banking institution poised for growth and success in its local market. The bank has been perennially profitable, given an existing high-quality retail loan book with opportunities and scope for diversification and further expansion into corporate and SME lending.

Access Bank recently unfolded plans to expand to more African countries as part of a strategy to support trade and finance in the continent and take advantage of the newly formed African Continental Free Trade Area (AfCFTA).

According to Wigwe, across Africa, there is an opportunity for the bank to expand to high-potential markets, leveraging the benefits of AfCFTA.

He said AfCFTA, among other benefits, would expand intra-Africa trade and provide real opportunities for Africa.

He stated that the plan is for the bank to establish its presence in 22 African countries so as to diversify its earnings and take advantage of growth opportunities in the continent.

According to him, Africa has enormous potential and there are opportunities for an African bank that is well run, that understands compliance and has the capacity to support trade and the right technology infrastructure to support payments and remittances, without taking incremental risks.

“We believe that we are best positioned to basically do all of that. Our focus is to become an aggregator in Africa and we are building a global payment gateway and providing trade finance support and correspondent banking across the continent. We are focusing on the key markets.

“The approach would always be that in the country we wish to go to, that we have the right skills. We would not just be a drop in the country in which we are present, we would make sure that we have an impactful presence in each of the major countries in which we are present.

“In doing this, we are also mindful of the country we are going to so as to make sure that it is of benefit to the bank. As we do this, we are working with our friends and partners.

“We are diversifying our earnings away from volatile markets as well and we are orchestrating our operations from the global payments gateway and ensuring that using Access Bank UK, providing corresponding services from digital platforms, the overall profitability of our franchise,” he explained.

Commenting further, on AfCFTA, he said the bank would use its digital framework to benefit from the continental agreement.

“Coming to Nigeria, we think we need to continue to entrench ourselves in the local market because there is still so much work to be done.

“So, we are doing everything possible to satisfy our customers and also to ensure that our channels are adequately secured. We are also ensuring that our staff are very efficient,” the CEO said.

Since the commencement of the AfCFTA, analysts and stakeholders have expressed optimism about Nigerian banks’ readiness, saying the financial sector stands to benefit most from the continental agreement.

They noted that with most Tier-1 banks already operating in many African countries and are continually expanding, saying that would give them an edge over their counterparts in other African countries.

They added that with the increase in trade expected to spur economic activities and increased lending, many banks are already positioned to take advantage of AfCFTA.

The immediate past President of the Chartered Institute of Bankers (CIBN), Mr. Uche Olowu, said Nigerian banks with more trade will be in a better position to increase lending to the real sector which in turn will spur economic activities.

He said: “Banks are ready especially as banks have procured good lines that would support trading and supporting manufacturers, exporters, Nigerians products, which would thereby jumpstart economic activities.

“Nigerian banks are liquid and are prepared to lend out to those channels and outlets to serious manufacturers because it poses great opportunities for Nigerian banks and the Nigerian economy.

“Banks are there to intermediate and they have the information, data and all that it takes to support Nigerian businesses that are serious and credit worthy.”

Also, the President of Risk Management Association of Nigeria, (RIMAN) Mr. Magnus Nnoka, said Nigerian banks are well capitalised and have outlets across Africa which put them at an advantage.

Nnoka said: “We are amongst the most prepared country from the financial services point of view. Apart from a few banks in Egypt and South Africa, Nigerian banks are reasonably capitalised compared to other African countries.

“I think Nigerian banks, given their size today and given their track record, are prepared and positioned to attract partnerships that would also facilitate trade within the African block.”

On his part, the Head of Consulting, Agusto Consulting Limited, Mr. Jimi Ogbobine, said:

“In terms of the AfCFTA, the Nigerian banking industry is more prepared than banks from Ghana, Kenya and maybe it is the South African banks that can give them a challenge in terms of exploiting AfCFTA. But outside South African banks, Nigerian banks are the most prepared, especially when you are using footprints across the continents and for South Africa.”

In view of the opportunities that exist in the market, Access Bank recently disclosed plan to transit to a holding company (HoldCo) structure. The bank has received the Approval-in-Principle from the Central Bank of Nigeria for the restructuring and the HoldCo will consist of four subsidiaries in order to tap into the market opportunities that are available in the consumer lending market, electronic payments industry and retail insurance market.

Access Bank Group will consist of Nigeria, Africa and international subsidiaries, while the payments subsidiary will leverage the strong suite of the bank’s assets.

“Going into the fourth year of our four-year cyclical strategy, our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner,” Wigwe said.

In 2018, the bank launched its ‘Africa’s Gateway to the World’ campaign – a strategic initiative which aims to promote ‘access to finance’ in Africa and beyond. It started this campaign by leveraging technology to offer its consumers new products. An example was its partnership with Remita, which has offered PayDay loans to over five million external customers. The product was available on the web, through the bank’s USSD code, via ATMs, Access Mobile, WhatsApp Banking, and QuickBucks – its instant loan disbursal application.

Access Bank has also continued to strengthen its digital technology to propel both its sustainability targets and its African gateway strategic drive.

This was evident in the bank’s partnership with the Africa Fintech Foundry (AFF), aimed at nurturing the next generation of cutting-edge financial-technology firms.

Equally, Access Bank has been driving its revenue growth through retail expansion, which has grown consistently across all income lines, driven by a strong focus on consumer lending, payments and remittances, digitalisation of customer journeys, and customer acquisition at scale

It has also maintained strong capital levels despite investments for growth and has accumulated capital over time.

Its recently released financial statement for the year ended December 31, 2020, showed that despite a challenging economic and regulatory landscape, the bank beat analysts and stakeholders’ expectations.

In the period under review, the bank recorded gross earnings of N764.7 billion for the financial year ended December 31, 2020, which was a 15 per cent improvement from the N666.75 billion posted for the comparative period of 2019.



Growing real estate investment, input cost increase cement price

Growing investment in real estate as an alternative asset for Nigerians looking for where to hedge their funds against inflation is a major reason for the rising price of cement, BusinessDay findings have shown.

READ ALSO: MSMEs Contribute Over 50% Of Nigeria’s GDP, 80% Employment ― FG

High input cost, product scarcity or limited supply arising from shocks in the economy and disruptions in production activities is another reason for the current hike in cement price.

Nigeria is experiencing what is clearly a galloping inflation. Its March inflation figure at 18.17 percent is an embarrassment to economic analysts. Apart from eroding the value of the local currency, this has also affected food prices and crimped household/consumer purchasing power significantly.

By its nature, real estate, unlike other investment asset classes, appreciates in value over time, virtually unaffected negatively by inflation. Rather than depreciate and lose value in inflationary periods, real estate, in the worst case scenario, remains static in value.

This explains why the rising price of cement is not deterring or stopping investment in the sector.

“The knowledge of real estate as a means of financial security has attracted more players and investors into it, thereby affecting the demand and supply of cement in the country; real estate is one sector that can flow with inflation per time, hence a lot of Nigerians are currently investing in it,” Osazee Edigin, an estate developer, confirms to BusinessDay in Benin City.

Construction activities have been upbeat in the sector since the beginning of the last quarter. Ayo Ibaru, COO, Northcourt Real Estate, also confirms to BusinessDay that increased investment in real estate contributes to the rising price of cement, citing mid-income residential buildings springing up in Lagos on both Island and Mainland.

He also cites institutional investors that are doing both residential and commercial developments such as Purple Capital, which is doing mixed use developments in Lekki and Maryland in Lagos. All these push up demand for cement and, by extension, the price of the product.

But there are other reasons for the significant increase in price that cement buyers have seen. “Yes, we have seen increased demand arising from increased construction activities in real estate sector, but that is not the real cause of the price hike.


Women Entrepreneurs

FG Urges Women Entrepreneurs To Apply For MSMEs Survival Fund Scheme

ABUJA – The Federal Government has pledged its commitment to supporting the operations of women-owned Micro, Small and Medium Enterprises (MSMEs) in Nigeria, even as it has advised them to apply for MSMEs Survival Fund Scheme.

READ ALSO: 246,000 Youths to Benefit from FG’s N75bn Youth Fund

Amb. Mariam Yalwaji Katagum, Minister of State for Industry, Trade and Investment, made this commitment when a delegation of the Federation of Women Associations in Micro, Small and Medium Enterprises (FEDWIM) led by its National Coordinator, Mrs. Anne Ugbo, paid her a courtesy visit in Abuja.

A statement on Friday by Mrs. Oluwakemi Ogunmakinwa, Assistant Director, Information in the Federal Ministry of Industry, Trade and Investment quoted the minister to have said that Nigerian women entrepreneurs, through their ingenuity have always contributed their quota to national economy and therefore needed to be encouraged for enhanced contribution to Gross Domestic Product (GDP).

Katagum reaffirmed that Nigerian women formed a very important constituent of the President Muhammadu Buhari-led administration.Katagum reaffirmed that Nigerian women formed a very important constituent of the President Muhammadu Buhari-led administration.

She reiterated that women-owned businesses were allocated 45 per cent and five per cent for those with special needs in the Federal Government’s MSMEs Survival Fund Scheme to cushion the effects of COVID-19 pandemic on their businesses.

According to the Minister, “The Federal Government clearly understands the place of women in economic development of our nation and that is why this Ministry is doing everything possible to support them.

Among other initiatives, the Federal Government has also flagged off is the N50billion Export Expansion Facility Programme (EEFP) on non-oil export businesses thereby safeguarding jobs and creating new jobs.

“I use this medium to encourage more women to apply and we also urge associations to mobilise and sensitise their members,” she said.

Katagum commended the association for the achievements recorded so far and advised the delegation of FEDWIN to formally write to the Ministry, indicating areas of collaboration.

Earlier in her address, the National Coordinator, Federation of Women Associations in Micro, Small and Medium Enterprises (FEDWIM) Mrs. Anne Ugbo said the association was in the ministry to brief the Minister about its programmes and to solicit support for its members across the 36 states, including the Federal Capital Territory.

She commended the Minister of State for her motherly commitment to the well-being of the Nigerian women through her contributions to the growth of Micro, Small and Medium Enterprises (MSMEs).

She stated that “FEDWIM is established to serve as a platform to create synergy among all women economic empowerment focused groups to provide a single mechanism for coordinated engagement with government and other stakeholders.

“This would engender effective supervision and monitoring of participation in the implementation of programmes and feedback for appropriate policy formulation and decision making on matters of economic empowerment and financial inclusion of women.

“This would fast track the development and competitiveness of the MSME sector, especially for women who are faced with challenges of poor access to affordable finance, appropriate technology and other challenges”.

The National Coordinator said the association was currently mobilising 50,000 women across sectors and levels of operations to participate in the ongoing process of accessing the Agribusiness and Micro, Small and Medium Enterprises Investment Scheme (AGSMEIS) loan.


Nigerian Exchange Group

Stock Market Gains N88.980, Ends Week Bullish

The Nigerian Stock market sustained its recovery Friday as the Nigerian Exchange Group (NGX) closed the week bullish and the All-Share Index and Market Capitalization appreciated170.02 index point and N88.980 billion respectively.

READ ALSO: Charting A New Course for Venture Capitals and Early-Stage Funding

The ASI appreciated by 0.43 percent to close at 39,301.82 basis point, having opened trading for the session at 39,131.80 basis point, while the market capitalisation jumped to N20.568 trillion from N20. 479 trillion, also representing a 0.43 percent growth.

The Equities market was largely impacted by the rise in the value of Sovereign Trust Insurance Plc , Stanbic IBTC Bank, Tripple Gee and Company Plc, Academy Press and Regency Assurance Plc.

The day’s transaction saw the stock market turnover increasing by 25.83 percent, as 287. 038 million shares worth N 3,038 billion in 3,578 deals as against 228. 111 million shares valued at N 2. 635 billion in 3,656 deals bought and sold by investors on Thursday.

The market breadth was massively positive with Nine laggard equities as against 32 stocks advancing.

The gainers’ table was dominated in percentage terms by Tripple Gee, surging by 9.23 percent to close at N0. 71 Kobo per share.

Sovereign Trust Insurance and Stanbic IBTC Bank rose by 8.70 percent to close at N0. 25 Kobo and N50 per share respectively.

Also, Academy Press Plc jumped 8.11 percent to close at N0. 40 Kobo per share, while Regency Assurance Plc climbed 8 percent to close at N0. 27 Kobo per share

Conversely, the laggard’s log was led in percentage parameters by Union Dicon Salt Plc, losing 9.59 percent to close at N9. 90 Kobo per share.

Linkage Assurance dipped 4.76 percent to close at N0. 80 kobo per share, while Cornerstone Insurance Plc Plc declined 3.70 percent to close at N0. 52 Kobo per share.

FTN Cocoa Plc fell by 2.50 percent to close at N0. 39 Kobo per share, while Northern Nigeria Flour Mills Plc completed the top five losers’ table when it shed 0.83 percent to close at N5. 95 Kobo per share.

Access Bank was the most active stock in volume terms, trading 46.788 million shares valued at N351. 758 million, while Guaranty Trust Bank closed trading as the most valuable equity at N1.333 billion.


Corporate affairs commision

CAC Grants Six-Month Extension On Unallotted Share Capital

Corporate Affairs Commission (CAC) has secured the approval of the Minister of Industry, Trade and Investment, Adeniyi Adebayo to extend to 31 December 2021, the deadline for existing companies to fully issue any unallotted share capital. 

READ MORE: Stock Market Gains N88.980, Ends Week Bullish

 It will be recalled that Regulation 13 of the Companies Regulations, 2021 had fixed an initial deadline of 30 June 2020 for all companies in Nigeria to comply with this requirement.

 The CAC also noted that any unissued share capital after 31 December 2022 will be derecognised from a company’s share capital until such shares are re-issued or reduced.

The Trade and Investment Minister had on 31 December 2020 approved the Companies Regulations 2021 pursuant to Section 4 of the Companies and Allied Matters Act (CAMA) 2020.

 The CR 2021, which was published by the Corporate Affairs Commission, replaces the Companies Regulations, 2012 issued pursuant to the repealed CAMA, 1990.

 The Regulations includes provisions that are aimed at leveraging technology to automate certain CAC’s administrative processes, clarifying certain compliance requirements of the CAMA 2020, and providing comprehensive governance and procedural framework, in line with global regulatory best practices.

 Some significant changes highlighted in the Regulations are: ‘Authentication of Documents’ (CR 2021) provides for the automation of CAC’s pre-and post-incorporation procedures in line with the Federal Government’s mandate of improving the ease of doing business in Nigeria.

These procedures include electronic authentication of documents submitted through the Commission’s web portal, delivery of electronic certified true copies of documents in lieu of physical documents and online real-time update of changes to information already submitted to the Commission, among others.

 Under the Minimum Issued Capital Paragraph 13 of the Regulations mandates, all existing companies are advised to issue all unissued shares in their capital before June 30, 2021.

 The Registrar General of the CAC, Garba Abubakar in a recent stakeholder session organised by the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) on the implementation of the Companies Regulations 2021, clarified that Paragraph 13 gives effect to the provisions of Sections 124 and 868 of CAMA 2020 which redefined share capital as “issued share capital”.

Consequently, the concept of “unissued share capital” which derived from the repealed CAMA 1990 and allowed a company to have issued share capital that is less than its authorised shared capital, has effectively been obviated by CAMA 2020.

Further, Paragraph 13 of the CR 2021 imposes a daily default penalty on a company and every officer of the company that fails to meet the June 30, 2021 deadline as follows: ₦250 for small companies, ₦500 for private companies limited by shares other than small companies, and ₦1,000 for public companies.

 It is however debatable how the implementation of the daily default penalty will apply to companies that fail to meet the deadline given that the Act did not prescribe any penalty for non-compliance. Nonetheless, the Registrar General of the CAC noted that companies that are unable to meet the June 30, 2021, deadline may apply for up to a maximum of 2 years extension. It is expected that the Commission will issue an official public notice in this regard soon.



MSMEs Contribute Over 50% Of Nigeria’s GDP, 80% Employment ― FG

The Federal Government (FG) has reaffirmed that Micro, Small and Medium Enterprises (MSMEs) contributes nearly 50 per cent of Nigeria Gross Domestic Product (GDP) and 80 per cent of the country’s total employment.

READ ALSO: FG Urges Women Entrepreneurs To Apply For MSMEs Survival Fund Scheme

Speaking virtually at the 7th EMPRETEC Global Summit with the theme “The Role of Entrepreneurship, MSME and EMPRETEC in post-COVID-19 Resurgence, the Federal Minister of State for Industry, Trade and Investment of Nigeria, Amb Mariam Katagum said the government had rolled out various interventions to reposition MSMEs for increased and sustained contribution to the national economy.

“As we are all aware, the MSME sector is the engine of growth of any economy, contributing to its development, job creation and export, amongst others.

“An MSMEs survey indicates that Nigeria’s SMEs contribute nearly 50 per cent of the country’s GDP and account for over 80 per cent of employment. No doubt, the sector is pivotal to Nigeria’s growth, including reducing poverty and unemployment levels.

“It has, therefore, become more apparent that supporting entrepreneurs and small businesses by creating opportunities for MSMEs to thrive is essential for increasing productivity, creating jobs, and boosting our economy.

“This is why Government is working with stakeholders across all sectors, to create the enabling environment for entrepreneurs and MSMEs to ensure that they grow now and into the future,” the Minister stated.

According to a statement by Oluwakemi Ogunmakinwa, Katagum said “the Government of Nigeria had, prior to the outbreak of COVID-19, initiated the MSMEs Clinics’ scheme as a strategy, aimed at providing support for the MSMEs in the country.

“At the clinics, which is organised in various states of the country, operators in the MSMEs space are engaged by regulators and business advisory experts, on issues ranging from entrepreneurship, skill development, finance, quality & standards, and on how to facilitate and grow their businesses and enterprises.”

The Minister further stressed that in order to achieve sustainable growth and development of MSMEs, the Federal Government had recently approved the revised National Policy on Micro, Small and Medium Enterprises (MSMEs) which would provide the framework to resolve the challenges faced by the sector.


Micro-Credit Lending Program

Update on the Enugu Micro-credit Lending program

This is Good News, Ndi-Enugu!

The Enugu SME Micro-Credit Lending Program beneficiaries for N100,000 and below can now process their loan with only two requirements:

  1. A Guarantors Cheque
  2. Remita Direct Debit Instruction

We have removed the need for beneficiaries with approvals from N100,000 and below to bring their repayment cheques.

Note: Other amounts will be reviewed for the same process shortly.

To apply, visit:

Or visit Enugu SME Center at No. 2a, Market Garden Avenue opposite SME roundabout along Ebeano Tunnel GRA, Enugu State for manual registration.

Terms and conditions apply.


AfCFTA Market Offers Nigeria $666.2bn Business Opportunities – Emefiele

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has revealed that companies in Nigeria stand to benefit from a market worth $666.2 billion when the African Continental Free Trade Area (AfCFTA) agreement fully comes on stream.

READ ALSO: CBN To Sanction Dealers Who Reject Old, Lower Dollar Notes

AfCFTA is an intra-African trade agreement that was adopted on March 21, 2018, to boost Africa’s trading position in the global market by strengthening Africa’s common voice and policy space in global trade negotiations, with President Muhammadu Buhari signing the agreement in 2019 at the AU summit which held in Niamey.

Emefiele, Tuesday at the Virtual 6th Export Seminar organised by Zenith Bank Plc, said the AfCFTA has a lot to offer the country if its laudable goals and objectives are fully implemented.

Speaking on the theme; “Nigeria’s Economic Prosperity: The role of Intra- Regional Trade and Non – oil Export Initiatives”, said the AfCFTA offers a lot of opportunities for the private sector in Nigeria.

“We believe that the African Continental Free Trade Agreement (AfCFTA) offer significant opportunities for the Nigerian private sector to expand into new markets, and seek new export opportunities, particularly in the area of Manufacturing, ICT, Agriculture and Financial services, given our growing advantage in these areas relative to our counterparts in other parts of Africa.

The CBN Governor noted that businesses in Nigeria should take advantage of the preferential access to $504.17 billion in goods and $162 billion in services.

“Full implementation of the AfCFTA is expected to give Nigerian firms preferential access to markets in Africa worth $504.17 billion in goods and $162 billion in services.

“I believe that we should seize this opportunity to ensure that Nigeria serves as a significant hub for international and domestic manufacturing companies seeking to serve the West, Central and East African Markets.

Emefiele also expressed delight at the young and energetic population of Nigeria.

“In addition, we have a very young energetic, technological savvy population that have been leveraging technological applications to improve service delivery in the areas of finance, logistics and agriculture to consumers in Nigeria.

“I believe the AFCFTA will provide an opportunity for these young talented Nigerians to expand their services across the African region. Developing trade portals that could support instant sales of goods manufactured in Nigeria to consumers in other parts of Africa is one aspect that can help to support the creation of jobs in Nigeria and improve foreign exchange inflows for the country.”

According to Emefiele, the apex bank has earmarked steps to boost the productive capacity of businesses across the country.

“Although Nigeria stands to gain from expanded trade, I believe it is also important that we pay attention to the cost that expanded trade through the AFCFTA could have on local businesses and communities.

“Smuggling of goods produced in non-African countries into Nigeria, and abuse of rules of origin have often resulted in significant job losses and displacements of workers in key sectors of our economy such as agriculture and manufacturing.

“It is vital that we work with the governing body of the AFCFTA in addressing these concerns, as it has profound implications on unemployment and security in Nigeria.”

In his welcome address, the Group Managing Director of Zenith Bank, Ebenezer Onyeagwu, lauded the economic diversification drive by the Federal Government, calling on all Nigerians to leverage on the non-oil sector to reduce over-dependence on the sector.