NIGERIA - The NGN63bn (US$491m) accrued within the national contributory pension scheme has raised hopes that SMEs could have access to long term funding.
The burgeoning Nigerian pensions industry has almost secured for SMEs the possibility of borrowing funds for a long period of time.
Tayo Aderinokun, MD of Guarantee Trust Bank, said: "The pension commission and pension administration business is just taking off and would introduce long term lending."
He explained banks were generally prudent in their investment outlets which resulted in difficulty for smaller businesses to take out long term loans.
SME trade unions have long lamented the limited access to financing and operators have complained about the difficulty in securing funding.
The funds being raised within the pension sector however could be the light at the end of the tunnel.
Omodunni Yussuff, CEO of IRM, a risk management consultancy firm, said there were several windows of opportunity for SME financing through the accrued pension funds.
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