FirstBank has reaffirmed its commitment to financing Nigerian manufacturers and agro-processing businesses, citing the need to boost domestic production, accelerate industrialisation and create jobs amid persistent challenges in accessing affordable credit.

The bank’s Managing Director and Chief Executive Officer, Olusegun Alebiosu, stated this during a breakout session at the 32nd Economic Summit in Abuja on Tuesday. He emphasised the importance of financial institutions in funding productive businesses and supporting economic growth.

Alebiosu said FirstBank had provided financing for rice mills, plantation agriculture and agro-processing enterprises, including palm oil processors, to strengthen local production.

He explained that accessible financing enables entrepreneurs to establish factories, acquire raw materials and manufacture goods for the Nigerian market. He also described industrialisation as essential to creating employment for the country’s growing population and the increasing number of graduates entering the labour market.

“The teeming population that we have and the graduates that we are churning out, the only thing that can absorb them is industry,” he said.

According to the FirstBank chief executive, the economic benefits of industrial investment extend beyond jobs created directly within factories. Industrial communities also support livelihoods for transport operators, food vendors, housing providers, schools, healthcare services and other businesses serving workers and surrounding populations.

He urged Nigerian entrepreneurs to consider opportunities in manufacturing, agro-processing, industrial power generation and industrial clusters. Expanding domestic production, he said, could reduce reliance on imported goods and stimulate economic activity across related sectors.

However, Alebiosu identified poor credit culture and loan defaults as significant barriers to business financing. He said borrowers who fail to meet repayment obligations had made banks and development finance institutions more cautious about extending credit, further complicating access to capital for businesses seeking to expand.

He stressed that entrepreneurs must demonstrate financial discipline, the capacity to repay loans and sound management practices to improve their chances of securing funding.

While acknowledging that high borrowing costs, including double-digit lending rates, could limit industrial expansion, Alebiosu urged business owners not to abandon viable manufacturing opportunities solely because of the cost of credit.

He also identified foreign exchange stability as an important consideration for business planning, noting that greater stability could help companies make investment decisions and secure the inputs required for production.

The FirstBank chief executive questioned the practice of requiring commercial banks to guarantee loans issued by institutions established to promote industrial development. He said the arrangement reflected concerns about the creditworthiness of businesses seeking financing.

He further cautioned against lending to entrepreneurs without the technical and managerial expertise needed to deploy funds effectively, stressing the importance of ensuring borrowed money is used for its intended purpose.

Beyond manufacturing and agro-processing, Alebiosu highlighted FirstBank’s FirstGem initiative, which supports women-owned businesses across various sectors.

He said the programme had been operating for about five years, expanding its reach to enterprises in tailoring, fashion, beauty and food processing. According to him, FirstGem prioritises the development of productive businesses rather than concentrating exclusively on conventional trading activities.

Alebiosu noted that financing women entrepreneurs could strengthen households, support business expansion and generate additional economic opportunities. He added that young women were increasingly embracing the initiative.

He reaffirmed FirstBank’s commitment to supporting women-owned enterprises as part of its broader strategy to promote entrepreneurship, productive investment and economic growth.

For Nigerian micro, small and medium-sized enterprises (MSMEs), the bank’s position highlights the importance of financing businesses capable of increasing local production, strengthening value chains and creating jobs. However, access to credit will also depend on entrepreneurs demonstrating viable business models, effective management and the ability to repay their loans.

Source: MSME Africa Online