Fidelity MD advocates for dedicated MSME bank, calls for tax reform

By Abubakar Yunusa

The Managing Director and Chief Executive Officer of Fidelity Bank,Dr. Nneka Onyeali-Ikpe, has urged the Nigerian government to establish a dedicated Micro, Small, and Medium Enterprises (MSME) Bank to ensure affordable financing for small businesses.
She made the call during her keynote address at the Development Bank of Nigeria (DBN) Lecture Series 2024, held in Abuja.
Speaking on the theme “Empowering Nigerian MSMEs in a Challenging Global Landscape,” Dr. Onyeali-Ikpe emphasized the importance of institutions specifically designed to support the financial needs of MSMEs.
She also highlighted the burden of double taxation faced by small business owners, noting that multiple tax authorities often target MSMEs, forcing many to close their operations.
“The government has a critical role to play,” she stated. “We need to intentionally establish an MSME Bank to ensure that small businesses have access to funds at a reasonable rate.
“While this may challenge the business models of commercial banks, it is a necessary step for sustainable growth.”
Dr. Onyeali-Ikpe further called for the expansion of developmental financial institutions, such as the Bank of Industry (BOI) and the Bank of Agriculture, suggesting the creation of sector-specific banks for mining, exports, and other key industries.
She stressed the need for tax breaks and financial relief for startups, aligning her remarks with ongoing government discussions on MSME palliatives.
“The growth of MSMEs is essential for Nigeria’s economy. By providing the right support, we can unlock their potential and boost our GDP,” Dr. Onyeali-Ikpe said.
Earlier in his remarks, Dr. Tony Okpanachi, Managing Director of DBN, echoed these sentiments, acknowledging the pressing challenges MSMEs face in the current global economic climate.
He outlined how rising production costs, inflation, and currency instability have made it increasingly difficult for small businesses to thrive.
“As Nigeria’s premier development financial institution, DBN recognizes that MSMEs are grappling with immense pressures from rising costs and disrupted supply chains.
“ Nevertheless, forums like these provide an opportunity to explore alternative solutions,” Dr. Okpanachi said.
He said said DBN has played a pivotal role in supporting MSMEs, having disbursed over N786 billion in loans to more than 494,000 businesses across Nigeria. This has contributed to the creation of approximately 1.2 million jobs.
Dr. Okpanachi commended the government’s efforts to create an enabling environment but stressed that much work remains to be done.