Nigeria’s nano and micro-enterprises, from roadside kiosks and market traders to growing online vendors, continue to serve as the foundation of the country’s economy, sustaining millions of households and communities across the nation.

 

Experts say these small businesses are far more important than many people realise. According to data from the National Bureau of Statistics (NBS), micro, small and medium enterprises account for about 96 per cent of businesses in Nigeria, contribute nearly half of the country’s Gross Domestic Product, and provide jobs for more than 80 per cent of the workforce.

 

Despite their contribution, a large number of these businesses still operate informally, with weak financial structures, poor record-keeping, and limited long-term planning. Industry experts now warn that this model may no longer be enough for businesses hoping to survive and grow in Nigeria’s increasingly digital economy.

 

Director of Business Banking at FairMoney, Ivie Abiamuwe, said financial readiness has become essential for nano-SMEs in 2026. In an article titled “Why Financial Readiness for Nigerian Nano-SMEs is Non-Negotiable,” she explained that Nigeria’s economic goals depend heavily on small businesses evolving beyond survival-based operations into structured participants within the formal economy.

According to her, many people wrongly assume nano-SMEs are too small to matter within formal financial systems. She argued that these businesses collectively play a major role in supporting economic stability at the community level.

 

However, she noted that many entrepreneurs still mix personal and business funds, making it difficult to track revenue, measure profitability, or build credible financial records. This lack of visibility also limits their chances of accessing loans and other structured financial support from banks and financial institutions.

Abiamuwe stressed that digital visibility is now a major requirement for business growth. She explained that businesses operating solely with cash transactions risk being excluded from opportunities within the modern economy because digital payments help create transaction histories that financial institutions can use to assess credibility and creditworthiness.

 

She added that financial technology institutions such as FairMoney are introducing digital banking solutions aimed at helping entrepreneurs move from informal operations into more structured systems.

According to her, this transition is no longer only about convenience but about helping small businesses remain competitive in a more regulated and digitally-driven economy.

 

Credit access also remains a major challenge for nano businesses, as many entrepreneurs avoid borrowing due to fear of debt. Abiamuwe explained that responsible borrowing can instead help businesses expand operations, manage inventory, and improve cash flow when handled properly.

She said maintaining a good repayment history can increase trust with financial institutions and improve access to future financing opportunities. She also encouraged small business owners to explore financial products such as fixed-term savings accounts, which can help create stability and support long-term expansion plans.

 

One of the biggest problems facing nano businesses, she said, is the inability to separate personal and business finances. Without proper financial separation, business owners struggle to accurately measure profits or make informed decisions about growth.

 

She emphasized that opening and maintaining a dedicated business account is one of the most important steps nano entrepreneurs can take toward achieving financial discipline, improving decision-making, and building sustainable businesses capable of long-term growth.

Source link