According to Dr. Basheer Oshodi, President of the Non-Interest Financial Institutions Association of Nigeria (NIFIAN), 140 million Nigerians, representing 63% of the population, lived below the poverty line in 2025. This figure is a significant increase from 17.7 million Nigerians recorded below the poverty line in 1980. Oshodi emphasized the urgent need to improve access to capital for small and medium enterprises (SMEs) and other productive businesses.
Oshodi, who is also the Group CEO of Arthur Group, made these remarks during a panel discussion titled "Mobilizing Local Capital for SME Growth: Challenges and Opportunities in Non-Interest Finance" at the launch of Amaanah Non-Interest Finance Company in Lagos. The event took place on October 1, 2026. He was joined on the panel by Abdur Rasheed Babalola, Managing Director of Hilal Takaful, and Sherifat Animasahun, Head of Investment Banking at The Alternative Bank.
Oshodi identified the cost of funds as one of the biggest obstacles to SME growth, stating that expensive financing can make it difficult for small businesses to survive. He attributed the high cost of funds to the high monetary policy rate and limited access of SMEs and finance houses to cheaper sources of funds. Oshodi called for greater use of local funding arrangements, including government-backed funds and the non-interest finance window of the Bank of Industry.
The NIFIAN President also emphasized that poverty goes beyond income and affects access to healthcare, education, nutrition, employment, and sustainable livelihoods. He illustrated this point with the example of a person suffering from malaria who can only afford Panadol. Oshodi linked the country's out-of-school population to future economic and social challenges.
Oshodi noted that many aspiring entrepreneurs do not require millions of naira to start businesses but need relatively small amounts of capital and access to markets. He stressed that access to finance alone will not solve the problem if entrepreneurs lack knowledge of their markets. Oshodi cited the example of someone who wants to sell nails but does not know who to sell them to.
Oshodi urged non-interest finance institutions to study the methods used by fintech companies to reach micro-businesses through digital transactions, agents, and merchants. He suggested that non-interest finance providers can adapt successful elements of the fintech model to expand their reach. Oshodi also called on fund managers to create dedicated MSME investment funds.
Other panelists, including Babalola and Animasahun, identified poor awareness and lack of trust as major obstacles to the growth of non-interest finance. Animasahun noted that not all SMEs need debt and that businesses require different forms of financing at various stages of development. The panel discussion highlighted the need for innovative financing solutions and increased access to capital for SMEs in Nigeria.
Key points
- 140 million Nigerians lived below the poverty line in 2025.
- High cost of funds is a major obstacle to SME growth.
- Non-interest finance institutions can learn from fintech companies to expand their reach.
