Nigeria’s informal sector remains one of the country’s strongest economic pillars. According to data from the Central Bank of Nigeria (CBN) as of April 2026, the informal economy contributes over 58 per cent of the nation’s Gross Domestic Product (GDP) and accounts for the vast majority of employment opportunities across the country. This underscores an important national reality: strengthening Micro, Small and Medium Enterprises (MSMEs) is central to sustaining Nigeria’s economic growth.
Against this backdrop, stakeholders across government, the private sector and development institutions have renewed calls for stronger collaboration to unlock the full potential of Nigeria’s MSME ecosystem.
The call came at SME Connect 1.0, the maiden enterprise development forum organised by LAPO Microfinance Bank in collaboration with the Association of Small Business Owners of Nigeria (ASBON) and the Small and Medium Enterprises Development Agency of Nigeria to commemorate the 2026 World MSME Day. Widely regarded as the first large-scale SME development forum convened by a microfinance bank in Nigeria, the event was themed “Driving MSME Growth Through Impact, Partnership and Innovation.”
Bringing together entrepreneurs, policymakers, regulators, development partners and business leaders, the forum focused on practical solutions to the challenges confronting small businesses. Discussions centred on access to finance, business formalisation, digital transformation, capacity building, market access and strategic partnerships as the key pillars required to build resilient and competitive enterprises.
For LAPO Microfinance Bank, however, the conversation extends beyond financing.
As a non-state actor driving financial inclusion, the Bank has consistently demonstrated that sustainable enterprise development requires a holistic approach—one that combines affordable finance with financial literacy, business education, mentorship and access to strategic networks. Through this model, LAPO Microfinance Bank has democratized access to finance for more than 6 million MSME customers while equipping entrepreneurs with the knowledge required to establish, manage and scale sustainable businesses.
Speaking at the event, the Managing Director/Chief Executive Officer of LAPO Microfinance Bank, Cynthia Ikponmwosa, reaffirmed this philosophy.
“At LAPO Microfinance Bank, we recognise that access to finance alone is not enough. Entrepreneurs need the right knowledge, skills, networks and opportunities to build resilient businesses. Through initiatives like SME Connect, we are creating platforms that empower MSMEs to thrive, create jobs and contribute meaningfully to Nigeria’s economic development.”
The scale of the Bank’s intervention reflects this commitment. Today, LAPO Microfinance Bank serves customers across 34 states and the Federal Capital Territory, reaching urban centres, peri-urban communities and rural areas alike. It has disbursed over ₦1.7 trillion in loans spanning education finance, SME lending, agriculture, clean energy, housing, mortgage finance, consumer lending, public sector finance, asset acquisition and other productive sectors of the economy.
Beyond the figures, the institution’s impact is evident in over 6 million entrepreneurs whose businesses have grown through sustained access to finance and enterprise support. More than 70 per cent of the Bank’s loan portfolio is dedicated to women entrepreneurs, reinforcing its long-standing commitment to inclusive economic participation.
Delivering the keynote address, Olufemi Egbesola, called for stronger partnerships among government agencies, financial institutions and the private sector to create an enabling environment for MSMEs through supportive policies, improved access to finance and enterprise development programmes.
Similarly, representing SMEDAN, Tosin Abajo stressed that collaboration remains fundamental to enterprise growth, noting that Nigerian entrepreneurs require much more than credit.
He explained that business development support, formalisation, digital capability, market access and continuous capacity building are essential ingredients for building sustainable businesses, adding that SMEDAN remains committed to working with stakeholders to strengthen Nigeria’s enterprise ecosystem.
The event also featured expert panel sessions covering business formalisation, taxation, digital transformation, access to finance and business sustainability, while an exhibition provided entrepreneurs with opportunities to showcase their products, connect with potential partners and receive business advisory support.
The participation of organisations including ASBON, SMEDAN and the Lagos State Internal Revenue Service reflected a growing consensus that no single institution can address the challenges facing MSMEs alone. Sustainable enterprise development requires coordinated action between regulators, financiers, business associations and development partners.
For LAPO Microfinance Bank, SME Connect 1.0 represents more than a commemorative event. It reinforces the Bank’s broader commitment to deepening financial inclusion through innovative financial solutions, strategic partnerships and enterprise development initiatives that produce measurable economic outcomes.
The evidence increasingly speaks for itself. As Nigeria’s informal sector continues to account for more than half of national economic output, institutions that strengthen MSMEs are directly supporting the country’s growth trajectory. Through nationwide outreach, over 6 million customers, operations across 34 states and the FCT, and more than ₦1.7 trillion disbursed into productive sectors, LAPO Microfinance Bank has become a strategic partner in Nigeria’s development journey.
In the evolving conversation around MSME development, the focus is gradually shifting from rhetoric to results. And by combining finance with capacity building, partnerships and innovation, LAPO Microfinance Bank continues to demonstrate that financial inclusion is not simply about extending credit—it is about creating lasting opportunities for businesses to grow, create jobs and contribute meaningfully to Nigeria’s economic prosperity.
