Ovaloop CEO says Nigerian SMEs lose loans over poor records - urges digital tools for bank-ready finances
Ovaloop Technologies CEO Princewill Mba said many Nigerian SMEs generate substantial revenue but can't access bank loans because they lack verifiable financial records, speaking at a Lagos press conference on Monday. He explained that while digital payments adoption has grown, most small businesses still use manual methods for inventory, sales and accounting, making them unattractive to lenders who require credible operational and financial data.
Mba argued that simply increasing loan availability won't solve the financing gap - businesses must first generate trustworthy records through digital inventory and business management tools. He called for policies encouraging tech adoption among SMEs, noting Ovaloop has engaged policymakers since 2023 to drive retail sector digital transformation. The company's CTO Daniel Kilanko added that local solutions must accommodate African realities like offline operation and flexible pricing for traders with limited digital skills.
Despite challenges including financial concerns (62%), credit access and inflation, Mastercard's SME Confidence Index shows 81% of Nigerian SMEs feel optimistic about the next year, with the same percentage agreeing digital payments are vital for growth. Ovaloop's Chairperson Titilope Ejimagwa stressed that better record keeping through technology also improves tax compliance and reduces risks like employee fraud.
For Nigerian traders struggling to access loans despite good sales: Have you explored digital tools that could turn your daily sales records into bank-ready financial statements, or are manual methods still working well enough for your current needs?