23/09/2025
Mapping MSME Access to Finance in Lagos: Who Gets Funded and Why
Hello entrepreneur, let’s talk about something that’s on almost everyone’s mind — access to finance. If you run a small business in Lagos, you’ve probably asked yourself: “Why do some people get loans easily while others keep struggling?” Let’s break it down together in plain language.
What are MSME?
MSME simply means Micro, Small, and Medium Enterprises. These are businesses that drive our economy — from the woman frying akara at the corner, to the small fashion designer employing three tailors, to the tech startup with a growing team. If your business is registered, making sales, creating jobs, or providing services, chances are you fall into this category.
What qualifies you as an MSME?
In Nigeria, your size is usually measured by:
Number of employees (micro: less than 10, small: 10–49, medium: 50–199).
Annual turnover (how much money your business makes in a year).
You don’t need to be “big” to qualify. Even the smallest hustles can count as MSMEs once you treat them like real businesses.
What kinds of businesses qualify for MSME credit facilities?
Banks and institutions like BOI want to fund businesses that are productive and sustainable. This includes:
Agriculture – farming, food processing, agro-allied businesses.
Manufacturing – small factories, furniture makers, producers.
Creative industries – fashion, film, design, music, and media.
Technology – startups solving local problems with innovation.
Services – logistics, cleaning, health, education, etc.
The key question is: “Can this business grow, create jobs, and repay the loan?”
Common mistakes MSMEs make when planning for credit
Now here’s where many entrepreneurs miss it:
No proper records – Many businesses don’t keep accounts. If you can’t show how much you make and spend, lenders won’t take you seriously.
Mixing personal and business money – If your shop’s profit is the same wallet you use for food and transport, it’s hard to prove growth.
No business plan – Lenders want to see how the money will be used. “Just give me money, I will manage” doesn’t work.
Poor compliance – No CAC registration, no tax ID, no licenses. Without these, you’re invisible to formal finance.
Three MSME success stories in Lagos
Farmcrowdy – Started as a small agricultural platform in Lagos, now one of Nigeria’s top agri-tech companies, attracting local and international funding.
House of Tara – Began with just a small makeup kit; today it’s a full-scale beauty brand with training centers and retail outlets, supported through proper structuring and finance.
LifeBank – A health-tech startup that began in Lagos, now uses technology to deliver blood and oxygen to hospitals. They scaled with access to credit and investor funding.
Final Takeaway
Finance is not just about asking — it’s about preparing. If you want to be among those who get funded, start keeping records, separate your money, register your business, and have a clear plan for how a loan will help you grow.
Remember: opportunity favors the prepared business.
Wellzino Communication Ltd & Business Development Service Provider (BDSP)
