The Businesses That Power Nigeria’s Economy Are Still the Least Financed
If you look closely, there is a paradox at the heart of Nigeria’s economy. The businesses that contribute more to employment and daily economic activity are often the ones with the least access to structured financing.
Small and medium-sized enterprises account for about 96% of businesses in Nigeria, contribute close to 48–50% of GDP, and provide nearly 80% of jobs. Yet despite this economic importance, access to credit remains one of their biggest constraints.
Estimates continue to show a multi-trillion-naira SME financing gap, particularly among traders and informal businesses operating outside traditional banking structures.
Yet, the issue is rarely the enterprises, but access.
And increasingly, the conversation is shifting from whether SMEs should be funded to how funding should be structured for the businesses to scale up.
Structure Matters More Than Credit Now
Experience across emerging markets shows that financing works best when it reflects business reality. Market traders, shop owners, and micro-retailers typically operate daily or weekly cash cycles, yet many traditional loan structures are designed around corporate repayment assumptions.
And as data gives, the result is almost always predictable—exclusion.
This is why more thoughtful financing models are beginning to emerge, particularly those designed around operational realities rather than documentation alone.
For us at Open Space, Finance, our perspective is that financial inclusion must move beyond theory into practical access. Through OpenMarket, a structured loan solution within our ecosystem, we focus on providing working capital to market women, petty traders, and microbusiness owners operating verified physical shops across Nigeria and Africa.
By combining group lending methodologies, flexible repayment frequencies, operational verification, and AI-assisted credit intelligence, OpenMarket enables responsible access to capital for businesses often overlooked by conventional credit systems.
Open Space Loans Reflects How Businesses Actually Grow
Beyond access to credit, the objective is sustainability. OpenMarket helps traders by providing useful features like quick access to money, simple paperwork, repayment plans that match their income, and no need for collateral or a guarantor for loans under ₦2 million. For larger facilities, accountability structures help maintain credit discipline while supporting growth.
More importantly, the model helps traders build verifiable credit histories, formalize their operations, and strengthen their long-term financial positioning.
Because ultimately, SMEs do not just need funding; they need finance partners who understand that growth in informal markets follows patterns, trust, and consistency.
In the economy now, the right access to capital can catapult business growth in ways unimaginable.
Link up with our Customer Experience Team for more enquiries via +234 201 3309 599