Credit Direct has launched Money Talks, a practitioner-led financial literacy initiative aimed at addressing poor cash flow management among small and medium-sized enterprises (SMEs) in Nigeria.

Speaking at the inaugural session, Chief Executive Officer of So Fresh, Olagoke Balogun, said inadequate cash flow remains one of the leading reasons businesses fail, regardless of size.

“The number one reason businesses die (big and small) is lack of money. When cash finishes in a business, the business dies. You have only four ways that money comes into your business, but you have a thousand ways money flies out of your business every single day.

That is why the topic of cash flow is very vital,” Balogun said.

Balogun drew from his experience building the Nigerian food brand to explain the difference between profitability and liquidity, noting that many business owners mistake paper profits for available cash.

According to the National Bureau of Statistics (NBS), SMEs account for about 96 per cent of businesses in Nigeria and contribute nearly half of the country’s Gross Domestic Product (GDP). However, data from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) show that many SMEs fail within their first five years, with poor financial management identified as a major factor.

Credit Direct said the Money Talks series was conceived to bridge the financial knowledge gap among entrepreneurs and promote better financial decision-making.

The company noted that financial inclusion should go beyond access to loans and include equipping businesses with the knowledge required to manage and deploy capital effectively.