The Bank of Industry (BOI) has unveiled a new structured-based model, “Business Clinic”, aimed at improving the survival, growth, bankability, digitisation, sustainability and long-term competitiveness of micro, small and medium enterprises (MSMEs) that survive beyond five years of operation.

Speaking at the launch of the initiative yesterday, the theme, ‘Thrive Summit: Driving Growth Through Innovation and Financial Empowerment’, the Divisional Head, Business Development at BOI, Dr Obaro Osah, said the programme was part of the bank’s 2025–2027 implementation strategy to expand non-financial services, which will be replicated across all regions of the country.

Osah said MSMEs remain the backbone of Nigeria’s economy, representing 96 per cent of all businesses in the country, accounting for 84 per cent of total employment and contributing 40 per cent to the national Gross Domestic Product (GDP).

He said, despite their significance, including Nigeria’s $1 trillion economy ambition by 2030, 80 per cent of businesses do not survive beyond the first five years of operation.

Giving a breakdown of the National Bureau of Statistics (NBS)/Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) report, Osah noted 60 per cent of businesses do not make it to the second year, 40 per cent survive the third year, 10 per cent make it to the fourth year while only 20 per cent are still standing by the fifth year.

Osah highlighted the leading causes of business collapse to include low skills, weak governance, poor record-keeping, limited market access, high interest rates, weak value-chain integration, poor visibility and digital presence, collateral gaps, poor documentation, and low financial literacy.

Others include cash flow instability, high borrowing costs, high power/logistics costs, poor storage and supply chains, low tech adoption, difficulties with CAC/tax compliance and fragmented advisory/support services.

Osah said BOI’s structured system intends to address these issues and to focus on the 20 per cent of businesses that survive beyond five years and scale them into stronger and investment-ready enterprises.

The Chief Strategy & Development Officer/Divisional Head, Strategy, Policy & Research, BOI, Dr Isa Omagu, explained that the Business Clinic is a strategic platform designed to bridge the critical capability gaps that limit MSME growth.

Omagu said the clinic focuses on making MSMEs more prepared, resilient and growth-ready by offering practical advisory in finance, taxation, digital tools, planning and budgeting, bookkeeping, inventory management and other core business processes that strengthen competitiveness and sustainability.

“So, it becomes very expedient for us to be sitting down with MSMEs to find out how we can support them to earn more dollars and pounds by developing a tailored fundraising plan to secure sector-specific funding, maintaining efforts to obtain better borrowing terms from existing partners and accelerating efforts to source additional equity funds.

“Also, shifting 80 per cent of local enterprises’ funding towards infrastructure and priority sectors by developing a pipeline of bankable projects to reach 24,000 MSMEs by 2027,” he said.

In the welcome address, the Executive Director, Corporate Finance, Sustainability & Investments, Bank of Industry, Mr Rotimi Akinde, said the clinic represents a shared commitment to building a stronger and more resilient business ecosystem in Nigeria.

He said the clinic equips enterprises with the tools they need to scale sustainably by offering structured, multi-dimensional support across finance, operations, marketing, compliance, governance, systems, technology, digital readiness, business structure, organisational culture and people (human resources) as well as raising capital for equity.