Fidelity Bank Reiterates Support For SMEs

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Fidelity Bank Plc has reiterated support for the micro, small and medium enterprise (MSMEs) sector whose activities were hampered by the Covid-19 pandemic.

Fidelity Bank made the disclosure recently at the 13th edition of the Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria (CIBN).

Speaking at one of the panel sessions, the Divisional Head, SME Banking Division, Osaigbovo Omorogbe, said; “The bank’s commitment is borne out of the realisation that SMEs are the engine room of any economy.”

“The ability of MSMEs to stay on sustainably at this time, and even become more attractive for various types of funding support will undoubtedly be strengthened with deepened capacity building support, both on the back and front office ends”.

“There is a compelling need for relevant stakeholders to deepen capacity-building support for MSMEs in various areas, ahead of funding support, to enable them position more strongly to stay afloat and even grow in the new normal.”

“A one-size-fits-all capacity building model/approach for MSMEs will no longer help. The need for more tailored capacity building support that will take into account the peculiarities and challenges MSMEs are facing; first on account of the pandemic and secondly because of the respective economic sectors they play in, their supply and distribution chains, the geographical locations they operate from and cover, etc.”

“I advocate for stronger collaboration amongst all stakeholders who have roles to play in ensuring MSMEs get and enjoy the much needed support they require at this time, in various areas, to further ensure the MSME segment not only survives the times but also gets set firmly, on the path of sustainable growth.”

It is noteworty that over the years, Fidelity Bank has leveraged the myriad intervention/development funding schemes typically offered at single digit interest rates by local and international Development Finance Institution (DFIs), for the benefit of its SME customers.

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The bank has through the efforts of its SME Banking Division, continued to build structures and systems to channel low-cost intervention/development funding to MSMEs including women entrepreneurs, to tame the ‘high-cost-of-funds’ challenge small businesses face in this market.

As at mid-September 2020, the bank in its capacity as a participating financial institution (PFI) in the Development Bank of Nigeria (DBN) on lending scheme for SMEs and small corporates, has disbursed a total of N21.9 billion to a large number of SMEs and small corporates playing in diverse sectors.

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